As of February 4th, 2021 at market close Gamestop GME 141.09 -17.27 -10.91% is trading at $53.50 per share after falling 5 days in a row from its all-time high at $483. That is around an 89% drop from the top.
If you had invested $100 at the peak (if Canada supported fractional shares), it would be worth $11.
There is evidence that people are gambling large amounts of money and they may not even realize it.
- This user “invested” his second mortgage saying he went from 5 million to 360 thousand dollars – https://www.reddit.com/r/wallstreetbets/comments/lcqegz/gme_yolofomo_my_second_mortgage_35k_to_5mil_to/
- This user took out a 20k loan and is setting at -50% at the time posting. Today he would be down another 42% if he is still holding. – https://www.reddit.com/r/wallstreetbets/comments/lbxn76/took_out_a_20k_loan_3k_savings_to_buy_gme_50_loss/
You can probably find a lot more posts like this on /r/wallstreetbets
I think the main take away to new investors or investors that never experienced loss is to only invest what you’re willing to lose. The subreddit itself is known to be a “casino”. However, since the subreddit growth has skyrocketed (🚀🚀🚀🚀) from 2 million to 8.6 million in a matter of weeks, I would not be surprised if some new users got caught up in the hype and gambled away their savings.
I’m not a financial advisor, but no sane financial advisor would recommend you to invest in GameStop right now, so stay away unless you’re into casinos. It is still really hard to judge where Gamestop can end up, but I’ll definitely be keeping a close eye on /r/wallstreetbets and the stock.
🚀💎🚀👋🚀👋💎👋🚀🚀💎💎👋💎 – /r/wallstreetbets speak “diamond hands” filled with rocket emojis.