The tale of millions of little GameStop investors seems to be over. The value of the stocks they bought en masse in protest against large leveraged funds has plummeted. The bubble appears to have burst.
Just as the film companies MGM and Netflix have ordered scripts for them, the success story of millions of private investors seems to be coming to an end. They had teamed up on the Reddit internet forum and decided to buy the same small stocks en masse to add value, with the aim of tracking the big leveraged funds on Wall Street.
With success: the shares of the ailing video game company GameStop were suddenly worth more than those of Tesla and Apple. Cinema group AMC and tech company Blackberry also saw unprecedented appreciation in value due to WallStreetBets investors. The big players on Wall Street were hit, the small investors made huge profits.
But the success story now seems to be over. Every one of these companies has been badly hit on the New York Stock Exchange. GameStop lost 60 percent, AMC 41.20 and Blackberry 25 percent in one fell swoop.
To prevent investors from engaging in similar antics in the future, US Treasury Secretary Janet Yellen has announced that she will meet with key financial sector players to create a system that allows for better surveillance and correct practices in the stock enables market. “The minister believes the integrity of the financial markets is important and has asked for a discussion on the volatility in these markets and whether what we have seen there is in line with investor protection and fair and efficient exchanges,” she said Speaker.