Wall Street vs Reddit: Hedge funds lose billions of dollars amid frenzied trading fueled by social media users freepressjournal.in - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from freepressjournal.in Daily Mail and Mail on Sunday newspapers.
Movie rental chain Blockbuster went bankrupt in 2010 and has been an afterthought thanks to the rise of Netflix Inc (NASDAQ: NFLX).
What Happened: The .
For once, Main Street is beating Wall Street.
In a matter of weeks, two hedge-fund legends – Steve Cohen and Dan Sundheim – have suffered bruising losses as amateur traders banded together to take on some of the world’s most sophisticated investors. In Mr Cohen’s case, he and Ken Griffin ended up rushing to the aid of a third, Gabe Plotkin, whose firm was getting beaten down.
Driven by the frenzied trading in GameStop and other stocks that hedge funds have bet against, the losses suffered over the past few days would rank among the worst in some of these money managers’ storied careers.
Source: Yahoo! Finance
It s important for investors to understand that nothing fundamental has changed with these companies. There is no news out on any of these stocks that has driven these rallies over the last several days. The prices have been pumped by traders on Reddit to successfully squeeze out short-sellers.
But the pullback today shows that traders are beginning to take profits, meaning that these stocks could still have a long way to fall as all three of these businesses are still up significantly this year, and Bed, Bath & Beyond and Fossil Group are still in precarious positions.
Bed Bath & Beyond, the legacy home goods retailer, earlier this month reported modest comparable-store sales growth of 2% in its fiscal second quarter, benefiting from a boom in home goods sales. But despite improvements and asset sales, the company is struggling to generate consistent profits.