GameStop and Reddit news: Here are the 5 things you need to know
CNNCNN Business — There was a lot to unpack in the deluge of news this week about GameStop, the stock market, Reddit groups, trading apps and hedge funds. IT’S A DAVID VS GOLIATH STORY At the heart of the GameStop saga is a struggle between two drastically different groups of investors: A band of amateur day traders versus a bunch of Wall Street pros known as short-sellers. Their mission has two main goals: Drive up stock prices to score profits for themselves, and at the same time, force the establishment investors to abandon bearish bets against struggling companies such as GameStop, AMC, Macy’s and several others. As investors following the Reddit group bought a ton of GameStop options, short-sellers were forced to buy shares to cover their losing bids — thus boosting the share price even further.