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Hey there, Bullets Fans –
Your Morning Bullets Brief Updates are here! And that means trivia is, too.
Name a time that Musk’s tweet caused shares of a stock to plummet?
Hint: You can find the answer in one of today’s articles! You can also double check your answer at the bottom of this email.
Image Source: AP Images
The David and Goliath narrative playing out right now between retail investors and hedge funds as they fight over GameStop stock can only end one way, experts say.
Shares eventually stop increasing. Either the shorts lose steam and give up, or the big regulators and brokers get involved.
In less than a month, GameStop’s shares have seen increases of over 900%, going from $19 a pop to almost $500 a piece at one point.
And even as hedge funds are shoring up billions, it is still considered a heavily-shorted stock, with borrowed shares accounting for over 120% of the total available.
“Is this a new platform for investors to make decisions, does it even the playing field?” asked a lecturer at Boston University. “You could argue that what happened with Reddit is them putting the shorts on check, and that’s a positive.”
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Image Source: Reuters
Imagine if your Twitter handle had the power to shift the stock market. Elon Musk, the CEO of both Tesla and SpaceX and the second wealthiest person in the world, has exactly that kind of power.
In this past week alone, his words have had a massive impact on stocks. His Twitter bio now says “#bitcoin,” and on Friday the digital currency’s value skyrocketed to $38,566.
“Gamestonk!!” he tweeted on Tuesday, accompanied by a link to the reddit thread that is fueling the GameStop uprising. That stock’s valuation eventually surpassed $10 billion.
“I kinda love Etsy,” he wrote later that same day, triggering a 9% increase in shares.
“Regulators don’t just need to catch up, they need to proactively enforce rules and clarify what is acceptable,” Dan Lane, of Freetrade, said. “…The reality is that the new brand of charismatic leader has a public platform now and isn’t confined to the boardroom. It’s up to regulators how they deal with that but, eventually, the onus will be on them to update the rule book.”
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