This is why a guy from Reddit decided to hand out money to GameStop employees

After a horde of manic traders from Reddit earned a whole lot of money buying GameStop stocks, one of them decided to hand out postcards with money to GameStop employees.

He posted a photo showing a bunch of postcards with hundred dollars bills in them and said he and his palls handed some of these out to employees at the local GameStop’s.

They are a part of the reason we are up so much“, he explained.

This man asked his fellows to do the same – to show some love for GameStop employees.

GME Gang – if you’re up a lot, also consider a thank you to GameStop employees that are every much a part of this as you are.

Yesterday, we handed some of these out to employees at the local GameStop’s. They are a part of the reason we are up so much. Please if you’ve benefited from this a lot, those employees deserve this – consider doing something similar.

The story starts in August 2020 when GameStop was treated like a left for dead retailer selling physical goods in a digital world, and some institutional investors were shorting Gamestop stock.

If you think stock’s going down, you borrow it, you sell it now, and wait for it to decrease in price, to buy it and give it back to who lent it to you. This is called shorting. Some institutional investors were shorting Gamestop stock. They borrowed it, sold it and were waiting for it to crash to buy it at a lower price. The guys in wallstreetbets decided to do the opposite. They are buying and not selling. This puts pressure on the price to increase (and those institutional investors find it difficult to buy it back, and must do it at a higher price). The people in wallstreetbets see themselves as winning the fight (and getting paid/rich in the process), so they spam the subreddit with happiness and motivation to buy more“, explained one Redditor what happened with Reddit and GameStop stocks.

Since October 2020, the GameStop stock is up 637.1%.

This caused mania from wallstreetbets members on Reddit.

GameStop is by far the most talked about stock in wallstreetbets subreddit which has 1.8 million members (they call themselves “degenerates”). GameStop is mentioned in 41% of the comments and most are positive.

Financial blogger Alex Pitti believes that Wallstreetbets traders who are still clinging to their stocks are about to be crushed.

In his latest blog he asserts that the stock exploded on hype due Reddit speculators, and Ryan Cohen’s involvement.

As he notes, Chewy (CHWY) founder Ryan Cohen helped boost the stock with his late August filing which showed he had a 9% stake in the company.

Ryan Cohen stated he wanted GameStop to compete with Amazon as a gaming powerhouse and ranted to the board for not following his ideas. At the end of December, Ryan Cohen showed he upped his stake in the beleaguered retailer to 12.9% and said he wanted to make changes to the board. He finally got his wish this week as he is being added with 2 colleagues from Chewy (Alan Attal & Jim Grube). The stock rose 57.39% on this news“, Pitt explains.

He adds that hype isn’t backed up by sales.

The stock is priced as if they will be successful, but hope isn’t reality“, concludes Pitti, arguing that Redditors who still hold on to their stocks will lose in the long run.

Wall Street Bets Traders Are About To Be Crushed By GameStop (NYSE:GME)

GameStop started as a cigar butt which made sense because physical demand for games still exists. The stock exploded on hype due to Ryan Cohen’s involvement and Reddit speculators.