Perspective: What Can Investors Learn From The GameStop Saga?
Social media-hyped stocks took a beating on 18th February, with shares of game retailer
GameStop (NYSE:GME) closing at around $40. The share price dove from an all-time high of $483 earlier this month, ending a wild ride for amateur investors still holding their position.
The same week also brought on slumps in many “meme stocks,” oftentimes leaving small investors in the wind.
Other social media darlings like
AMC Entertainment Holdings Inc. and headphone maker
Koss have also seen their shares drop, following increased interest in past weeks on Reddit’s
Wallstreetbets.
The fight dubbed “the little guys” of Reddit vs. Wall Street has yielded incredible wins for some. Unfortunately, it has also brought several small investors to their knees, with many losing life savings and college funds.