The GameStop stock frenzy seemed like a flash-in-the-pan but then, last week, it was reinvigorated. What Lessons Found can business owners and CEOs gain from it?
“ was the week when a bunch of amateur traders made Wall Street’s finest look like idiots.” This is the opening sentence for one report on GameStop’s stock 500% runup. By now, we have all heard this tale and its consequences including billions lost; a rushed investment to save Robin Hood; Robin Hood’s freezing trades of the stock and the call for congressional hearings. The resulting panic and lack of a coordinated response indicate that few considered the possibility of a social media driven stock run – let alone how to address it. But should regulators, Robin Hood, and hedge funds caught-short been better prepared? (more…)