Stock Market: Amatuer Buyers vs. Seasoned Investors

< 1 min read Amateur investors are betting more than GameStop is worth, while the big investors are putting more money in for the stock to drop.

Phone with stocks

Photo by Michael Förtsch: Unlike many companies, however, that have been shutting down because they can't stay afloat, GameStop's soaring.

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By Stephanie Perez | Scperez@radford.edu

A war between amateurs and big investors leaves the world in wonder. The most extraordinary part is that the rookies are winning the battle.

GameStop is the battleground that everyone desires right now. GameStop has struggled to stay in business this past couple of months like many stores because of the COVID-19 pandemic. 

GameStop is the battleground that everyone desires right now.

Unlike many companies, however, that have been shutting down because they can’t stay afloat, GameStop’s soaring. How did GameStop go from sinking to being in command of the sea?

The Reddit account that noticed and caused all of this commotion calls themselves “Reddit Wallstreetbets.” Reddit told people that GameStop was undervalued in its shares, meaning no matter what you bought off GameStop shares, you’ll still earn money. 

While the amateurs were buying all the stocks, the big investors waited, considering it a lost cause. The big investors tried to short sell GameStop because they knew GameStop hasn’t been doing well. 

Reddit knows the investors are betting on it to be a lost cause. So they are raising the bar on stocks.

Reddit knows the investors are betting on it to be a lost cause. So they are raising the bar on stocks.

Amateur investors are betting more than GameStop is worth, while the big investors are putting more money in for the stock to drop.

Big investors know that Reddit can only keep the number so high for so long, so the Big Investors win once the value drops. 

This is the biggest game of Stock Market tug-a-war this decade.