Redditors Now Targeting BlackBerry Stocks After GameStop’s Short Squeeze

By
Zhi Hao
-

Last Updated on 2021-01-31 , 11:55 am

It was nothing short of a revelation.

The masses of the Internet had the audacity to challenge professionals who did it for a living, and heed this;

They actually won.

Some called it a miracle. Others deemed it to be a modern-day version of Robin Hood.

No matter what it’s called, one thing’s for sure; the GameStop ‘Short Squeeze’ signified the power of the masses, and what a concentrated community could potentially do on a global front.

Redditors Now Targeting BlackBerry Stocks After GameStop’s Incident

And it appears that the online army of Redditors is far from being done.

Fresh off their victory over a bunch of red-faced investors, the masses are taking on another insane hurdle:

The stocks of the ever grandiose BlackBerry.

And it looks like another clear-cut victory over here.

BlackBerry stocks have risen dramatically since Redditors joined in the fight – against hedge funds making bets against them.

In fact, the stocks have increased so frantically that even BlackBerry executives are cashing out.

According to the news report, three BlackBerry executives, including the chief financial officer, have sold US$1.7 million of the technology firm’s stock, following a staggering share price rise.

The holdings were retailed on 20 January, and ranged from US$12.63 to US$13.01 – almost double the trading value a mere week ago.

Chief Financial Officer Steve Rai cleared nearly 33,000 shares – believed to be his whole position in the company. They were sold in a trade valued at US$428,731.

Mark Wilson, the company’s chief marketing officer, managed to retail 78,500 shares – worth some US$991,455.

Billy Ho, a division leader within BlackBerry, sold US$259,000 of shares.

It should be noted that all of the executives have been retailing stock on a periodic basis over the last year.

Though lest you’re wondering, they did not flout any company regulations in doing so.

“The BlackBerry executives traded during an open trading window, as permitted under company policy, and all of our executives continue to have strong equity-based incentives through our long-term equity program,” a BlackBerry spokeswoman said.

So in essence, it’s all fair game.

Though the profits were certainly boosted by a particular demographic on the net.

Meanwhile, apart from GameStop and BlackBerry, Nokia and AMC have also seen their stocks rise in the wake of Reddit’s intervention.

GameStop

Following a rapid change in fortunes for GameStop, global regulators have been forced to step in as trading reaches a feverish pitch.

In the previous week alone, GameStop has risen by a whopping 700%.

Warning shots have since been fired from both sides of the Atlantic, with watchdogs stating that they are observing activity and potential lawbreaking.

The intervention comes after a public restriction by online brokerage platforms Robinhood Markets and Interactive Brokers – which blocked their users from trading GameStop and other stocks.

The US’s Securities and Exchange Commission (SEC) said: “The FCA is aware of the situation and continues to closely monitor trading in UK markets. UK investors should take care when trading shares in highly volatile market conditions that they fully understand the risks they are taking. This applies to UK investors trading both US and UK stocks.

“Extreme stock price volatility has the potential to expose investors to rapid and severe losses and undermine market confidence.”

Actions that may compromise the abilities of investors, such as the initiated stop on trading on Thursday (28 January 2021), will be duly reviewed.

For more information (and analysis) on the GameStop saga, you may click here.

Featured Image: SGM / Shutterstock.com

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Zhi Hao
Email: [email protected]