For the past week, Reddit's WallStreetBets community has been the center of an epic war between major Wall Street investors and little social media know-it-alls. Now they're stumbling out of their Reddit community, which has been banned and hidden to be republished about an hour later. In the meantime, the Discord chat app immediately banned them. Everything that seems to have ghostly investorsSome of them dumped stocks, others bought and let AMC and GameStop stocks sway wildly.
GameStop and AMC shares fell dramatically in after-business trading shortly after the drama ended. They've recovered a bit since then and the group has been trying to build a new community on Discord.
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If this is all confusing, don't feel bad. These quick and dramatic moves take place in the midst of one of the most dramatic weeks on Wall Street in years. It's about the millions of dollars retail investors who work together on social media made as they compete against Wall Street investors who bet GameStop and AMC stocks would fall. Instead, Wall Street investors reportedly suffered billions of dollars as stocks of the two companies rose.
As the drama of the Discord ban and the Reddit community lockdown unfolded, GameStop stock fell 32% after close of trading on Wednesday, to $ 218.32 per share, compared to $ 347.51 at close of trade. During the day they had more than doubled. AMC shares also fell, falling more than 40% to $ 11.90 per share after closing at $ 19.90. This stock was up more than 301% during the day.
Both stocks have bounced back a bit and the r / WallStreetBets community is back. If it would have taken you an hour and a half to see Pixar's new movie Soul, you would have missed it.
Although GameStop stocks have risen sharply in the past few days, analysts and experts say they are doing so because of quirks in the market and not because of the actual increased value to the struggling video game retailer. The same applies to the cinema chain AMC, which warned of bankruptcy late last year.
All of this wasn't the only bad news for the WallStreetBets community. The worst community members who have repeatedly broken Discord's rules have resulted in the group being banned from the platform, the chat app company said in a statement. "Today we decided to remove the server and its owner from Discord in order to continue allowing hateful and discriminatory content after repeated warnings," said Discord. The ban has nothing to do with talk of finance or stocks that took place among WallStreetBets users.
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