2 Minute Take: GameStop and AMC weren’t going to go up forever. That doesn’t excuse Robinhood and others’ market manipulation.

Let’s cover the basics first:

  1. The spike in price is not because the companies are suddenly extremely profitable or successful, but because of an astronomical surge in demand. The higher the demand for a stock, the higher the price, naturally.
  2. Large, multi-billion dollar hedge funds were counting on AMC, GME, and others to steadily decrease, in order to make a profit. This is because as businesses, AMC and GME have been suffering. They wouldn’t be betting on, say, Apple or Tesla, to be continuously decreasing.
  3. The people benefiting the most from these surges are not the Wall Street elites, but individuals communicating through online forums, buying and selling at the right time(s).
  4. Those hurting the most from this surge are hedge funds and wealthy people.

Blatant Market Manipulation

Earlier today, Robinhood, TD Ameritrade, as well as other investing services, blocked their userbase from buying more of AMC, GME, and others, citing unprecedented market volatility.

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Daniel Larkin

Daniel Larkin

18 year old Progressive aspiring to be a journalist or something more.