One of the most iconic things in the financial realm that happened early this year was the massive rise of GameStop stock values, which turned into a crazy story and getting even those who are not familiar with the financial world intrigued in the whole fiasco. What happened to $GME stock now? Did the Reddit/R/WallStreetBets stock finally fall from its peak?
Elon Musk Reacts to $GME Meme
Aside from Elon Musk's sudden move to invest in Bitcoin, the billionaire gave a few tweets about the whole GameStop situation, or rather "game stonks," which consisted of a massive number of beginner or not even traders all buying GameStop stocks while huge hedge funds were shorting it.
A recent Tweet on Twitter tagged the Tesla CEO in a popular meme showing a dog drinking his coffee in the middle of fire. The dog in the meme (center of the fire) was titled $GME, while the flames were titled DOW, S&P and NASDAQ. This could signify that DOW S&P and NASDAQ are all burning GameStop stock to the ground as the stock plummets to a low of $101.74.
GME Lowest and Highest
To put things in perspective (for 2021), on Jan. 5, the GameStop stock price opened at $17.35, but just a few days later, the stock finally peaked and closed at $483.00 on Jan. 28! This was barely a month apart and the stock has reportedly climbed about 2783.86 percent. The data can be seen clearly on Yahoo Finance.
Basically, those hedge funds believed that GameStop would go bankrupt and that they would be able to make money when it does. However, WallStreetBets on Reddit discovered that there were actually more stocks shorted in comparison to how many stocks were in existence. This meant that when people would buy more and more stock, the hedge funds would lose a huge load of money trying to pay back the stocks that they shorted.
🤣🤣— Elon Musk (@elonmusk) February 26, 2021
Robinhood "Controversial IPO"
However, things took a turn when a popular trading app called Robinhood decided to stop trading for the stocks where the hedge funds had invested massive amounts of money in. The app wasn't down but reportedly just stopped trading for those specific stocks alone, as people were buying even more stocks. The whole incident was covered by an article by CNBC and it showed how the chaotic scenario played out.
Despite the whole fiasco, Robinhood has reportedly decided to file what Bloomberg titled as a "controversial IPO," which the company aims to do in March. This would mean that the very trading platform that restricted trading for the $GME stock would now reportedly be available to trade.
After being tagged in that meme, Elon Musk simply replied with two laughing emoticon which can either mean that he agrees that GameStop is in trouble as the DOW is signalling that it is bearish, NASDAQ shows bearish prices, and the S&P index is a red chart as well, or that he thinks the meme was foolish (which he would usually correct in most cases if he did think it foolish).