Jakarta, CNBC Indonesia – The phenomenon of stock frying and stock pom-pom frying is not unique to Indonesia. This activity also took place on Wall Street. One that got the attention in the GameStop stock.
GameStop is a conventional company that sells video games. The company’s financial performance is not very good. Management struggled to turn things from loss to profit. Even the company has closed several of its shops due to sluggish business.
However, its stock performance said differently. In the last six months its share price has gone up 8,000%, according to NBC News. Previously, the share price was only in the range of US $ 4 per share. At the close of US stock exchange trading, GameStop’s share price closed at US $ 347.51%. This stock even touched US $ 450 per share.
This investment in stocks has made several retail investors rich overnight. One retail investor said that he had succeeded in changing his investment in GameStop shares of US $ 50,000 to US $ 22 million in the last few weeks. There is also a teenager who told me that he scored US $ 15,000 from GameStop even though he had only been trading stocks for one day.
The skyrocketing share price without the company’s fundamentals was followed by a number of retail investors who joined the Reddit social media discussion forum called Wallstreetbets.
The forum has over 3.9 million followers and mostly transact through the low-cost stock trading platforms Robinhood, MooMoo and TradeStation. GameStop is a favorite share of Wallstreetbets forum members. This stock was first recommended in 2019 by a member of the forum.
WallStreetbets members vow never to sell GameStop stock and encourage other members to buy more shares of the company. They also attack analysts or investors who criticize their favorite stock.
One of them is Andrew Left, an experienced investor on Wall Street, who had predicted a fall in GameStop stock. Last week he stopped commenting on GameShop because his family received threats, as quoted by CBS News, Thursday (28/1/2021).
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