Gamestop Monday….WTF Happened?

I like this ‘explainer’ post from Peter Heilbron titled ‘Yolo‘ that covers a lot of what I have been seeing and feeling the last month and of course yesterday which I have dubbed …Gamestop Monday.

Yesterday on Stocktwits there were 33,000 $GME tagged posts (the company is now at a $5 billion valuation). In Tesla’s wild ride up to their S&P inclusion and $800 billion valuation, the daily message volume rarely passed 20,000.

The way I explained it in a tweet yesterday was:

I liken this action to the ‘velociraptors’ during the movie Jurassic Park…the kids are probing and looking for weaknesses and playing a game. the game is financial chicken. The markets are forever changed as 400 plus million millennials are onboarded across globe.

In 2012, there was no Robinhood, but I believed it was coming and wrote about the rise of ‘The Instividual‘ on my blog:

Finally, with Stocktwits, there is a place that is a better representation of the ‘retail’ bucket… ‘The Instividual’. We have accounts at Schwab, Etrade, Lightspeed, Interactive Brokers and Think or Swim. We really can be a nightmare. We trade stocks, we love to chirp, we have opinions just like the analysts, but we don’t get any of the support. We may have blown up the family nestegg, but not that of the country’s (see Citibank, Merrill, etc…the ‘Institutions’). We wake up every day loving to do what we do. It’s fun. Running the community is hard, but not as hard as people think. We have created tools to curate, have a few ‘house rules’, apply the latest technologies and attract contributors ready to make sharing and discovery happen all in one place, almost on demand. Furthermore, the heirarchy is not just about how many shares you trade and how much money you manage. Finally, and maybe most importantly, our community is distributed. Sites and portals around the financial web can find us.

In 2012, there was no WallStreet Bets Reddit thread. No encrypted Telegram or Signal App.

Yesterday we saw a next level result of the phenomenon.

Hedge funds will have to get smarter.

They will, but so will the velociraptors.

The stock market is the ultimate game.