Gamestop, Dogecoin and the democratization of investing (and manipulation of TSLA earnings). Good or Bad?
Let's rewind the clock back to January 2021. Aside from the fact that the US was under a serious threat of civil unrest, the biggest news story was... the rise (and rise and rise) of Gamestop. Even Anderson Cooper at CNN and other news shows which traditionally don't focus on financial stories that dominate CNBC, Bloomberg TV and the like, ran segments on Gamestop. Although I had not yet started writing this blog, I did talk about it in class and actually ran a special session at my school covering this topic. For those that either missed it or have forgotten, the quick summary is this: Members of Reddit community called wallstreetbets had caught on to the fact that Gamestop shares were heavily shorted (at the peak over 130% of the outstanding shares had been sold short). Here is the key (and a very astute observation) that was pounced on by the guy in his mother's basement, and missed by the (insert top school name here) MBA at a NY hedge fund: GME could be vulnerable to a...