![]() GURA: Choi is not surprised we're still seeing new meme stocks. And the trucking company Yellow became a meme stock when it was on the brink of bankruptcy.ĬHOI: I think we'll be experiencing a lot more of these episodes going forward. None of it makes much sense, and traders have faced some painful losses. But then it started to spread to other stocks - to Bed Bath & Beyond, to BlackBerry and AMC, and more recently to regional banks, exacerbating the turmoil in that sector. GURA: That it was just another bubble artificially inflated by demand. He's a professor of corporate and securities law at the University of Michigan.ĪLBERT CHOI: I mean, I thought that at that point in time - back in 2021, I thought that this was just another fluke. GURA: Among the millions of us watching this play out was Albert Choi. KUMAR: I knew that it would be something that - it would burn twice as bright, but it would burn twice as hot as well. It was also an opportunity - albeit a high-risk opportunity - to make a lot of money. GURA: What motivated Kumar and other amateur traders was this sense that maybe the power dynamic was changing between Wall Street and mom-and-pop investors. KUMAR: I made a mental note that, OK, I should keep an eye on this and think more about what could happen here. He bought video games there when he was a kid. He'd followed the r/wallstreetbets message board since high school, and the uptick in chatter about GameStop caught his attention. ![]() Kumar was a college student waiting for his final semester to start online. People were stuck at home during a global pandemic with time on their hands. GURA: It was also a unique time which led many pundits to suggest the GameStop craze would be a one-off. SEAN KUMAR: It was a very stressful but a very exciting time. Sean Kumar says he considers that frenzied period a defining moment in his life. They drove up its price, and that made it very painful for those professional investors who wagered it would tank. GURA: Two and a half years ago, the video game retailer GameStop was floundering, and hedge funds were betting it would continue to flounder when members of this finance-focused Reddit community called r/wallstreetbets decided to do something about it. UNIDENTIFIED ACTOR: (As character) GameStop? ![]() ROGEN: (As Gabe Plotkin) Happy to take it. VINCENT D'ONOFRIO: (As Steve Cohen) Dumb money, man. SETH ROGEN: (As Gabe Plotkin) Stupidest people on earth. UNIDENTIFIED NARRATOR: When Wall Street rigged the system. As NPR's David Gura reports, the meme stock phenomenon lives on.ĭAVID GURA, BYLINE: It's a remarkable David and Goliath story that played out in the middle of the pandemic. The new movie "Dumb Money" is about the GameStop craze in 2021 when amateur traders banded together on the social media site Reddit to give professional investors a run for their money. Meme stocks are getting the Hollywood treatment.
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