Competition of Gamblers – On Gamestop and other Meme Stocks

International financial markets are always on the move. Currently, it is a bundle of threatening news that causes unrest. These include the war against Ukraine, soaring energy prices in particular, a return to inflation rates that many experts did not think possible, a readjustment of the monetary policy of leading central banks, economies weakened by COVID, a radical contraction of the crypto markets – and all this against the backdrop of rising debt levels in most countries.

The events surrounding the shares of the video game retailer GameStop Corp in January 2021 have shown how effective social media can be when it comes to un- leashing emotions and triggering massive investments into securities that owe their popularity primarily to social media. While large hedge funds bet on GameStop’s decline of stock prices, private investors organized via social media (especially Red- dit’s WallStreetBets) flocked to the other side of the bet. They did and do this by communicating intensively about it (pronounced buzz), striking predominantly optimistic tones (positive sentiment) and finally investing often and massively in the GameStop share and other meme stocks.

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