Misinformation and disinformation spread virtually unchecked on Reddit. The pandemic spawned dozens of subreddits claiming skepticism about COVID-19, questioning vaccines, and posting other disinformation about the virus. There were so many disinformation campaigns that the platform made the rare move to quarantine and outright remove some threats from the site.

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• Past shutdowns, he said, left „angered tourists more than disappointed traders.“
• There were so many disinformation campaigns that the platform made the rare move to quarantine and outright remove some threats from the site.
• The more money people make from that enterprise, the more unpleasant it is to confront the myth.

Assuming Reddit does go public, the stock is likely to be volatile and risky. At the right price, investing in the stock makes sense, but investors should wait to see a path to profitability since that seems to be harder to achieve than the company expected. Information on this page is for educational purposes only and not a recommendation to invest with any one company, trade specific stocks or fund specific investments. The chart below shows how fake news can directly impact the stock market by influencing market sentiment.

Does this matter to ordinary investors?

„The initial public offering is expected to occur after the SEC completes its review process, subject to market and other conditions,“ Reddit said in a filing with the US Securities and Exchange Commission. In a confidential filing, it did not reveal how many shares it planned to sell or the price of the shares. September is also a historically weak month for stocks, according to Jeffrey A. Hirsch, CEO of Hirsch Holdings and editor-in-chief of the Stock Trader’s Almanac.

• Amateur investors on WSB have discussed GameStop (which they refer to by its stock ticker abbreviation, GME) for years, but things changed early this year.
• But given Huffman’s comments and the earlier reports about plans to go public in the second half of 2023, it seems that an IPO is more likely to come sooner rather than later.
• We have gone through leading Reddit forums such as r/WallStreetBets and r/stocks to compile the list of recently covered stocks and provided the investment thesis on these stocks.
• In simple terms, short-selling is a bet that the company will fail, with infinite loss potential.

Reddit’s biggest financial backers include Chinese technology Tencent, Fidelity Investments and venture capital firm Sequoia Capital. GameStop shares may move by about 20 percent a day through March if options trades are an indication, Barron’s reported. For one thing, the volume of trading has strained the computer infrastructure of online brokerages, including TD Ameritrade, which said forex correlation Wednesday that its mobile app was handling unprecedented volumes. WSB takes something of an internet extremist’s approach to investing. Its slogan is „Like 4chan found a Bloomberg Terminal,“ alluding to the fringe message board and the Bloomberg computer system that is nearly ubiquitous in finance. Here’s a guide to understanding why and what the frenzy means for the stock market.

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I know stocks go up and down but it seems like a free fall to me with stocks loosing 100$ of their price like it’s nothing after it took them 1 year to get there. Moat of the stocks i own fell 20%, 30% in a matter of 1-2 months and i don’t understand what’s happening. Similarly, you can invest in an ETF that owns shares of Tencent, such as most Chinese ETFs, but you’d also only be getting a minimal stake in Reddit.

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How did the Reddit stock market rally happen and why did it start to fizzle on Thursday?

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Meme Stocks

Galvin said he believed federal regulators would take some action. White House press secretary Jen Psaki said Wednesday that the Biden administration’s economic team was „monitoring the situation“ around trading in GameStop. Reddit didn’t answer questions Wednesday about whether it’s in touch with regulators, but it said it prohibits posting illegal content or facilitating illegal transactions. „We will review and cooperate with valid law enforcement investigations or actions as needed,“ Reddit said in a statement.

A restaurant feeds people, a vacation rental gives a family some respite from the daily grind, a mechanic fixes your car. More recently, reports have emerged that the company intends to go public in the second half of 2023, but it has yet to make any official steps toward an IPO. If you’re looking for limited volatility, these companies might be a good bet.

Its wide membership of 900,000 flaunts a very specific (sometimes profanity-laced) culture and uses terms like “degenerate” to refer to its members. We don’t have a final answer yet, but trading platforms often allow their users to borrow money to invest. When share prices swing so wildly, the loans can become worthless in minutes. So they probably want to protect themselves in the event that many of the loans aren’t paid back.

They just revealed what they believe are the ten best stocks for investors to buy right now… That’s right — they think these 10 stocks are even better buys. The core behavior seen in the market isn’t forex risk management unheard of. She is not among a growing number of portfolio managers who think we will see a recession in the next six months. Like everyone else, she is paying close attention to economic data.

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However, Reddit also plays a key role in the spread of misinformation and disinformation. Context and effort must be provided; empty posts or empty posts with links will be automatically removed. Spam, ads, solicitations (including referral links), and self-promotion posts or comments will be removed and you might get banned. Disclose any related open positions when discussing a particular stock or financial instrument. GameStop was recently down more than 4% to below $16, setting the shares on course for their lowest close of 2023—and the lowest since February 2021, according to Dow Jones Market Data.

Their overwhelming bullishness has fueled billions of dollars in losses for short-sellers. One bear has even stopped commenting on GameStop stock, citing harassment from some members. And that means that all that whipsawing on Wall Street of the last few months — including the massive single-day swings of more than 1,000 points — reflects real nervousness among investors. They’re worried the Fed may tip the U.S. economy into a recession. While a potential shutdown isn’t expected to have much of an impact on the stock market, experts say it has contributed to the S&P 500’s more than 5% dip so far this month, to 4,275.

Right now, the speculation activity is only around a few companies, which isn’t that uncommon. But the broader concern comes when what are known as retail investors — amateurs buying stocks for their own personal gain — become overly exuberant and inflate stock prices, sometimes by taking out loans to buy shares. The simplest answer is that its stock price has skyrocketed — by somewhere around 8,000 percent over six months. The more complex answer is that its stock has become the central game piece in a financial power struggle between a major hedge fund, Melvin Capital, and a group of amateur stock traders who yell on the internet. The social media space has yielded both hits and misses. Meta went on from an early stumble after its 2012 IPO to be one of the top stocks of the decade.

Meme stocks ride on, though investors more cautious than GameStop era

Elon Musk, founder of Tesla and SpaceX, showed his affinity for the meme world by tweeting 1 word — „Gamestonk” — for GME. What’s a stonk? Great question. Reddit is the sixth most visited website in the United States. The site is extremely popular for memes, gossip, advice, and discussing niche interests.

There’s also Robinhood, the app that is the unofficial stock trading platform of choice for WSB. It lets people trade stocks and even more exotic investments, like options, for little or no charge. Mike Novogratz, an investor and former hedge fund manager, said the internet activity is the result of frustration that everyday investors are often locked out of lucrative opportunities, such as initial public stock offerings. Since Reddit isn’t publicly traded, investors can’t buy the stock through a brokerage as they would with a typical stock. But there are options for getting exposure to Reddit ahead of the IPO if you’re looking to do so. In February, The Information reported that the social media site was aiming to go public in the second half of the year and said the company has been waiting for the IPO environment to improve, keeping its paperwork up to date.