A Reddit group noted investors shorting GameStop stock and called for action. Shares later skyrocketed

Jim, I have one question for you before we move on to another topic. Do you think that thes Wall Street Butts and Robin Hood investors have changed the psychology of the market very much? I mean, I think that one of things that's happened is is that we have always relied on Wall Street. Research is being the principal reason why stocks go up. So what happens is Wall Street. Wall Street analysts Apple. They all make their projections for what Apple's going to do and then, if the projections are are exceeded. Apple goes up there today. Apple's a big It's a five because there's a lot of five different analysts raised price targets. So there's a sense that wow, it's been, by the way, apples of all time on there's a sense that Apple must have some sort of blow out, and so that can go up because of Wall Street research. But that's not nearly as important as the concentrated buying by people on Wall Street bets. Let me let me Can't let me shut that off. This is my wife because I'm having a problem but least have called that. Sorry about that. This kind of Bush League. Um, but I had to do it. I'm having a problem with my hip, and I have an m r I tonight. Total disclosure and cheap. My wife is trying to figure out whether to go with me there. You got the whole picture, you know? Look, I always do honest videos here. This is not like TV. I try it. You know, I had it on. They're the mistake was made because I'm trying to get my wife to go with me. The m r I I hope it goes well, But, you know, sometimes you want to do you know, you like, kinda wanna hold hands when you're going to an m R. I, um but anyway, you get that one way just to backtrack and get away from what my wife was saying. You have apple. All right, This is just pure Wall Street research. It's what's going on traditionally, and then you have game stuff. There's no analysts recommended game stuff, As a matter of fact, got downgrade from Chelsea today. No one's recommending bed bath up here now, people, the piece of research we saw in Bed Bath was basically they're getting more competitive Amazon but don't get carried away. And there probably won't be anything for B and G foods. It's very lightly covered, So you come back and you say, Wait a second, Is this nuts? And I said on CNBC, Does it matter? In other words, does it matter that Gamestop, which brought in this guy Ryan Cohen, who's the genius behind Chewy, doesn't matter that he bought, uh, 15% of the company got added to the board? Well, if you're short this stock, which is now up 82 points, you simply have to say, am I gonna be in business in business? Because I'm sure to this I gotta find stock. I have to cover the stock to go. Maybe the analyst going by. Look at this bed bath. In the time since I've been talking about, it's now up 16 points because 67% of people short, so make no bones about this. The Wall Street bets. People are looking at the short positions and attacking the shorts in a spectacular fashion, which tells my viewers our viewers that if you are short, please be aware that you may be under attack and hopefully not physically, but I want you to be sure that if you are in a position where you are heavily betting gets the stock and others were with you, they may target you next.

Video: Jim Cramer says wallstreetbets, Reddit has altered market psychologyThe meteoric rise in GameStop's stock, as traders congregating on Reddit and Discord take on short sellers and hedge funds, is hard to look away from. It's the closest thing Wall Street has to David vs. Goliath.An army of smaller-pocketed, optimistic investors threw dollars and buy orders at the stock of GameStop �� in direct opposition to a group of wealthy investors who are counting on the stock price to plunge.What's happening: Shares of GameStop, a legacy company whose stores are often located in struggling malls, have soared dramatically over the past two sessions as day traders push the stock with growing fervor. Investors have been betting that GameStop's stock will fall. They “shorted�� the stock, essentially thinking shares would tank. But such bets have been disastrous recently.Meanwhile, a cavalcade of smaller investors has been exhorting each other on the internet to keep the stock's momentum flying toward the moon. Many are pitching it as a battle of regular people versus hedge funds and big Wall Street firms.The stock, which closed out 2020 at $18.84 per share, finished the day at $76.79 after trading was halted multiple times due to volatility. At one point, it climbed to nearly $160, a record high.You read that correctly. GameStop, which is expected to lose money this year and next, has more than quadrupled in value in under a month because it's effectively become a meme stock. Since the beginning of 2020, it's jumped more than 1,100%, outpacing even Tesla's gains. Shares are up another 20% in premarket trading.Investors on social media had been arguing that GameStop was seriously undervalued and cheered earlier this month when the company added Chewy founder Ryan Cohen, who has been pushing a digital overhaul, to its board. Now, the focus is on momentum, as small investors hope the hype can help the stock keep rising.It's evident, however, that the saga has grown into much more than an argument over the future of a video game retailer, or the merits of different trading approaches. As no-fee apps like Robinhood democratize access to financial markets, some are reading it as a generational fight between the old and new guard of the investing world.Users on Reddit cheered when veteran short seller Citron Research said it would stop commenting on the stock, citing harassment from GameStop's backers. Melvin Capital Management, which bet against GameStop's rise, has had to accept an infusion of cash after suffering steep losses, the Wall Street Journal reports."As someone who started trading stocks in the late '90s in college, I would always remember watching when the small retail trading groups would get crushed by hedge funds and savvy short-sellers," Oanda analyst Edward Moya said in a note to clients this week. "What happened with GameStop's stock is a reminder of how times are changing."David certainly now has Goliath's attention."Starts opening r/WSB with my usual morning tabs," market strategist Michael Antonelli of R.W. Baird tweeted Monday, referring to the Reddit message board where much of the GameStop action has been coordinated.Traders on such platforms have been plugging other stocks with major results, too. BlackBerry shares, another fan favorite, are up more than 170% in 2021. They jumped 28% on Monday alone.Big picture: The wisdom of such trading decisions is certainly debatable. After all, it's near impossible to argue that GameStop's value has actually increased exponentially in a matter of weeks. Some gains are also attributable to a so-called "short squeeze," as those who bet against the stock rush to buy in so they can cover some of their losses.But once the GameStop dust settles, expect Wall Street's asset managers to watch where the retail trading hive mind wanders next. Clearly, it can have an impact.The Associated Press contributed.

Video: Jim Cramer says wallstreetbets, Reddit has altered market psychology

The meteoric rise in GameStop's stock, as traders congregating on Reddit and Discord take on short sellers and hedge funds, is hard to look away from. It's the closest thing Wall Street has to David vs. Goliath.

An army of smaller-pocketed, optimistic investors threw dollars and buy orders at the stock of GameStop �� in direct opposition to a group of wealthy investors who are counting on the stock price to plunge.

What's happening: Shares of GameStop, a legacy company whose stores are often located in struggling malls, have soared dramatically over the past two sessions as day traders push the stock with growing fervor.

Investors have been betting that GameStop's stock will fall. They “shorted�� the stock, essentially thinking shares would tank. But such bets have been disastrous recently.

Meanwhile, a cavalcade of smaller investors has been on the internet to keep the stock's momentum flying toward the moon. Many are pitching it as a battle of regular people versus hedge funds and big Wall Street firms.

The stock, which closed out 2020 at $18.84 per share, finished the day at $76.79 after trading was halted multiple times due to volatility. At one point, it climbed to nearly $160, a record high.

You read that correctly. GameStop, which is expected to lose money this year and next, has more than quadrupled in value in under a month because it's effectively become a meme stock. Since the beginning of 2020, it's jumped more than 1,100%, outpacing even Tesla's gains. Shares are up another 20% in premarket trading.

Investors on social media had been arguing that GameStop was seriously undervalued and cheered earlier this month when the company added Chewy founder Ryan Cohen, who has been pushing a digital overhaul, to its board. Now, the focus is on momentum, as small investors hope the hype can help the stock keep rising.

It's evident, however, that the saga has grown into much more than an argument over the future of a video game retailer, or the merits of different trading approaches. As no-fee apps like Robinhood democratize access to financial markets, some are reading it as a generational fight between the old and new guard of the investing world.

Users on Reddit cheered when veteran short seller Citron Research said it would stop commenting on the stock, citing harassment from GameStop's backers. Melvin Capital Management, which bet against GameStop's rise, has had to accept an infusion of cash after suffering steep losses, the Wall Street Journal reports.

"As someone who started trading stocks in the late '90s in college, I would always remember watching when the small retail trading groups would get crushed by hedge funds and savvy short-sellers," Oanda analyst Edward Moya said in a note to clients this week. "What happened with GameStop's stock is a reminder of how times are changing."

David certainly now has Goliath's attention.

"Starts opening r/WSB with my usual morning tabs," market strategist Michael Antonelli of R.W. Baird tweeted Monday, referring to the Reddit message board where much of the GameStop action has been coordinated.

Traders on such platforms have been plugging other stocks with major results, too. BlackBerry shares, another fan favorite, are up more than 170% in 2021. They jumped 28% on Monday alone.

Big picture: The wisdom of such trading decisions is certainly debatable. After all, it's near impossible to argue that GameStop's value has actually increased exponentially in a matter of weeks. Some gains are also attributable to a so-called "short squeeze," as those who bet against the stock rush to buy in so they can cover some of their losses.

But once the GameStop dust settles, expect Wall Street's asset managers to watch where the retail trading hive mind wanders next. Clearly, it can have an impact.

The Associated Press contributed.

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A Reddit group noted investors shorting GameStop stock and called for action. Shares later skyrocketed

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