After the dizzying high of last week, the price of GameStop stocks has started to plummet after a group of retail traders on Reddit boosted the price by over 1,600 percent, which caused Wall Street to scramble as hedge fund billionaires went on cable news and cried that the coordinated effort was “attacking wealthy people.” While the moment enjoyed a brief celebration as a populist revolt, the WallStreetBets subreddit is reportedly experiencing low morale as the stock frenzy has died down. Enter Mark Cuban, who stopped by the subreddit on Tuesday for an “Ask Me Anything” session where he doled out advice on what to do next and also took a shot at the Robinhood trading app for its controversial decision to block users from buying GameStop and other “volatile” stocks last Thursday. According to Cuban, that move caused the stocks to “dive” by cutting off the source of natural buyers: day traders. Via Deadline:
“If you can afford to hold the stock, you hold. I dont own it, but thats what i would do. Why? because when RH and the other online brokers open it back up to buyers, then we will see what WSB is really made of. That is when you get to make it all work. I have no doubt that there are funds and big players that have shorted this stock again thinking they are smarter than everyone on WSB. I know you are going to hate to hear this, but the lower it goes, the more powerful WSB can be stepping up to buy the stock again.”
Judging by the responses Cuban received, the subreddit plans to follow his advice with some users proclaiming, “BUY AND HOLD. WHEN WE BLEED, THEY BLEED AS WELL.” As for whether that gamble pays off, that remains to be seen, but it’ll be interesting to watch in the several movies that are already being frantically written about the week when GameStop stocks captivated a very bored world.
(Via Deadline)