In the last week, there has been a ton of drama and controversy surrounding the stock-buying service Robinhood and shares in GameStop. Many small retail investors have been taking part in the short sale of GameStop and they’re using the proceeds and gains to do good things for other people. An investor who asked to remain anonymous purchased 10 Nintendo Switches from Dallas-Fort Worth, Texas area GameStop locations and delivered them to sick children at Medical City Children’s Hospital on Thursday. Specifically, the anonymous donor said that his donation was made possible by GameStop gains, or shares of GME stocks.
In the last week, Wall Street has been in chaos because of an organized campaign that small investors pulled together for the purpose of taking on larger hedge funds. To do so, they drove up the shares of GameStop, which is located in Grapevine, Texas. The campaign got started on Reddit and similar discussion boards when small investors started encouraging each other to buy stock in GameStop, thereby forcing larger players like hedge funds to cover their own bets by buying stock. This, in effect, would increase the price of the stock even further. The person who donated the Nintendo Switches was inspired to give back.
— Off The Main Page (@offthemainpage) February 1, 2021
They said that they made a “good amount” through the subreddit called r/WallStreetBets and referred to it as a “hilarious GME trade.” Giving back was fun for them, and felt hilarious also, they said. A Twitter user explained how all of this went down. As an example, he said that a “short” happens when you borrow a stock from one broker and sell it at its current price immediately. The hope is that the stock’s price will fall so that you can buy the stock back at the lower price. At that point, you would return the borrowed “short” to your broker but keep the difference, or profit.
This video gives a good explanation of exactly what happened.