Just wow /uGb8gen2lY- im a spoon ≥ 🧢🗽🥂 January 27, 2021 The meme itself started circa 2017 with this absurdist, funny cartoon and it has now become the default lingo of r/Wallstreetbets.ĭamn, actually on the sub rn and it's common sentiment. Stonk is essentially just a funny way to say “stock” – and once you understand that, it explains everything else that has happened. Now why am I seeing the word “stonk” everywhere?
Some bought in believing in the stock, others because they thought it was funny – GameStop was easily memed thanks to many Reddit users’ fond memories of the chain.Īs the share price rose and rose, more people bought in – both to trigger the short squeeze, and because the price itself was now a way to make money. GameStop’s low share price, thanks to the shorters, made it relatively easy for a large number of people to buy in with little money.
#I lose a game so i quit meme series#
Traders who have shorted the stock now need to buy the stock to fulfil their obligations under the short – which drives the price up even further.Ī series of users on the Reddit forum r/Wallstreetbets noticed that GameStop was (a) undervalued by the market and (b) vulnerable to a short squeeze.Ī few canny Reddit users began beating the drum, and some legitimate high-profile investors also bought in, such as Ryan Cohen, who founded the online pet food company Chewy, and trader Michael Burry, famous for his portrayal in the book and film The Big Short. GameStop, before the frenzy, was one of the most shorted shares on the US market, as a range of funds bet that it would slump during the pandemic.Ī short squeeze happens when a stock price that was expected to fall, instead rises. What is a short squeeze?Įssentially, on the stock market, you can bet on a share price falling rather than rising, by “borrowing” shares and selling them at the current price, with the obligation to buy them at a later date, at whatever price they have then reached. It has evolved its own language and in-jokes, with users openly talking about making dumb decisions and the subsequent coin-toss of losses and gains.īut over the past six months, accelerating in the past few weeks, its users have zeroed in one one main stock – GameStop – and a tactic involving the “short squeeze”. R/Wallstreetbets is marked out by a devil-may-care approach to shares – its users are keen to gamble big and disdainful of traditional traders. It’s been around for years – offering a highly variable level of return to its members. Reddit forums trade tips on anything from bodybuilding to relationships and finances, but this one is about risky stock market investments. So, the main character of this tale is a subreddit called r/Wallstreetbets. How we got here is a complex tale – involving class warfare, the mechanics of meme culture and a phenomenon known as a “short squeeze”.Įssentially, retail investors have found a way to use their collective buying power to exploit a weakness in short selling, and both make money and a point in the process.
This has nearly bankrupted a few hedge funds, to the delight of smaller investors, mostly organised and egged on by the online forum Reddit. Or, more impressively, a rise of 10,692% compared to its price of $3.25 in April 2020. If they’re good, so is your day.You may have noticed that the stock price of GameStop, a struggling US computer games retail company, has soared from US$96.80 to $347.50 in the past three days – a rise of 359%.
Whether you like it or not, your coworkers’ behaviors can greatly affect your day. Are you looking for a coworker meme to laugh about?
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