In the beginning of the market, it rose 39%, and during the intraday it fell around 60%… Strikes against trading restrictions such as Robin Hood
Political circles criticize Wall Street and’ant side’… Experts in the monitoring of authorities are concerned about’overheating’
[AP=연합뉴스]
(New York = Yonhap News) Correspondent Kang Gun-taek = The stock price of’GameStop’, a video game distribution chain that symbolizes the’ant (individual investor) revolt’ in the United States, fell sharply after riding a roller coaster on the 28th (local time). .
On the same day, GameStop finished trading at $193.60, down 44.3% from the battlefield after experiencing confusion in which trading was suspended several times.
GameStop, which soared 135% the day before, soared to $483, a 39% increase in the morning.
Then, it turned downward when multiple stock trading platforms such as Robin Hood and Interactive Brokers announced that they were restricting some of the company’s stock trading due to excessive volatility. Robin Hood is the most popular trading app for individual US investors because it is free of charge.
GameStop, which plunged to $112.25, which was once more than 60% during the week, reduced its drop in the afternoon, but eventually ended a dizzying day with a drop of 44%.
This is the first time in six trading days that GameStop shares have fallen based on the closing price. Until the day before, the company was recording a record-breaking increase of over 1,700% this year.
Like GameStop, AMC Entertainment, which became a fierce battleground for ants and institutional investors, plunged 57%, Blackberry 42%, and Bed Bath & Beyond 36%.
Stocks of these companies are showing a dizzying trend because individual investors who rebelled against the public short selling of some hedge funds have joined forces to fight.
The 4 million individual investors gathered around the online community Reddit’s ‘Wall Street Betz’ discussion room intensively bought stocks such as GameStop and gave it a chance to short-selling companies that bet on decline.
Hedge funds, which had suffered a huge loss in the unity of ants, gave up their short selling positions and made a breakthrough, drawing attention both inside and outside the US.
The US politicians, both Democrats and Republicans, criticized Wall Street and sided with individual investors.
Senator Elizabeth Warren (Democratic Massachusetts), who is called’the grim reaper of Wall Street’, made a statement on the day: “Hedge funds, private equity funds, and wealthy investors who have been embarrassed by the GameStop deal have been playing with the stock market like private casinos, and only others costing others. “We made them pay,” and the Securities and Exchange Commission (SEC) urged them to regulate the massive capital on Wall Street.
Congressman Lo Cana (Democratic California) also made a statement saying, “There is a need for more regulation and equality in the market. Instead of investing in future technologies that will help America win the 21st century, Wall Street will destroy the company and Billions of dollars were poured into short selling stocks to make them lose their jobs.”
Congressman Alexandria Okaciocortes (Democratic New York) and Senator Ted Cruz (Republican Texas) launched an onslaught against Robin Hood, which restricted private investors from buying gamestops. It is also criticized that the game was unfavorable to individuals compared to hedge funds, which allowed both buying and selling.
However, many US media and experts have expressed concern over the overheating phenomenon, which is not related to the company’s performance. Related authorities such as the SEC also said that they are actively monitoring the situation.
Some are even expressing the opinion that the collective buying behavior of individual investors through online bulletin boards may be price manipulation and urged an investigation.
In an interview on CNBC, the founder of Appaloosa Management, David Teffer, recalled the’com bubble’ in 1999 and was concerned that “the situation did not end well when the bubble burst in 1999.”
However, a significant number of individual investors are still posting on the Reddit bulletin board encouraging the purchase of GameStops, indicating that they will not back down.
CNBC reported that a user posted on the bulletin board saying, “Don’t be afraid to drop the game stop. Keep buying and holding,” said CNBC.
Another user posted a post saying, “Buy it when it’s expensive, never sell it,” and some investors showed off their returns by capturing GameStop stock trading.
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2021/01/29 07:29 sent