REDDIT VS HEDGE FUNDS

A bit of a hoo-ha has started following a reddit community composed primarily of amateur traders/investors pushing the GameStop share price to heights where the company is now valued at twenty four billion dollars. This is a company that has closed around 800 stores and is not expected to make a profit until 2023 according to the ABC News report below.

Many professional hedge funds were short-selling this stock (e.g. they had bet the price would fall) and so have suffered heavy losses following the recent rally. Understandably the fund managers are a bit upset but in a free and open market I don’t think there are any grounds for complaint, even if the WSB community are creating their own digitised version of tulip mania.