Previously, we discussed what Reddit’s WallStreetBets were up to and where they might turn next. At first, many thought it would be the silver price because of previous discussions happening on the subforum. However, the CME Group increased its maintenance margins on Comex 5000 Silver Futures by about 18%, spiking the silver price. It fell the next day, proving that Reddit had little to nothing to do with this. Although the GameStop short squeeze seems to have blown over, retail investors continue to hold their stocks—partly owing to Robinhood and other brokers limiting the trade on GME last week. They have since been issued a class-action lawsuit, and face hearings this week. Because GameStop shares fell more than 50% after the frenzy, many are drawing comparisons to the Dot Com Bubble burst of 2000. But what exactly happened back then might not repeat in this case.
In fact, this massive social investing in GameStop, AMC, Nokia, and Blackberry might actually change everything.