Wall Street may be the “experts” in the stock market, but analysts are increasingly looking to Reddit’s WallStreetBets for info.
Reddit’s WallStreetBets upended the stock market when individual traders rallied around stocks that mainstream Wall Street institutions were shorting. GameStop, Blackberry, AMC and Bed and Bath and Beyond saw massive gains after they were shorted, ultimately costingWall Street tens of billions.
It appears Wall Street has taken notice, and is now looking to WallStreetBets, and other social media platforms, for tips and info, according to The Wall Street Journal. Firms like Goldman Sachs and Morgan Stanley have employees on Reddit, Discord and Twitter, looking for the next big trading phenomenon.
“It’s more art than science because it’s uncharted territory,” Simeon Siegel, a BMO Capital Markets analyst, told WSJ.
It’s an amazing turn of events and proves just how much platforms like Robinhood, along with social media, have democratized investing.