The GameStop stock plot thickens, with the latest development being a guest appearance by US Representative Alexandria Ocasio-Cortez. In light of recent events regarding the Wall Street trading of GameStop shares, AOC will talk stocks on Twitch tonight at 8:30pm EST.
The GameStop situation is full of twists and turns, and worth reading up on. Basically, wealthy hedge funds have been playing a short-term game to profit off of GameStop’s low stock prices. GameStop wasn’t doing great before the pandemic, and the sudden massive rise in online game sales only further hurt the company. It made an easy target for Wall Street elites, who used a technique called “shorting” to essentially borrow GameStop stocks, sell them back, and reap the profits. However, a Reddit community called WallStreetBets changed the game by buying loads of GameStop shares.
The sudden surge in demand drove GameStop’s value up astronomically. This might sound like a good thing for all involved, but this interfered with the hedge funds’ shorting. Prices going up is bad for shorting, resulting in the hedge funds taking heavy losses. It didn’t last long, however, as stock-trading app Robinhood and other online platforms took away the ability to buy GameStop and AMC stocks (Reddit was targeting AMC next). This essentially stopped the whole movement, and GameStop’s value immediately dipped as a result.
So where do AOC and Twitch fit in? Like many others, AOC is critical of the hypocrisy on display. Wall Street sharks and hedge funds have taken advantage of the rules for years, but the one time a group of average citizens plays the game, they get shut down. Political figures and business people from all walks of life–from AOC to Elon Musk to Donald Trump Jr.–have spoken out against Robinhood and Wall Street.
She’ll be joined by TheStockGuy and Social Capital CEO Chamath Palihapitiya. Well known Twitch streamer Hasan has also offered to join. While the agenda for the event has not been stated, AOC has streamed Among Us in the past for charity fundraising and to raise voter awareness during the 2020 election.
This discussion seems to be more like the latter–an attempt to inform viewers who don’t understand the stock market well. It could also have the effect of drumming up support for government action. With so many people unhappy with Wall Street’s actions today, something is bound to be done.
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