A new army of social media-enabled day traders is pushing record stocks and turning companies into market sensibilities.
Since trading is done by individual investors during the coronovirus epidemic, online communities have a popularity where they gather. Platforms including TikTok, Twitter, YouTube, Reddit, Instagram, Facebook and messaging platform Discord have become the new Wall Street trading desks. Individual investors gather to talk about hot stocks such as Tesla Inc., claiming gains and losses.
These investors, however, do more than just talk. They chortle at each other’s ideas and trades, fueling the momentum that has led some companies to triple-digit or make big gains in 2020.
“People fall in love [some stocks] And they meet in these echo chambers, where they are all shouting, like, ‘We’re going to buy Tesla forever!’ “People post all day like it’s a football game.”
And while online discussion among investors is not necessarily an issue, internet chat rooms dedicated to stocks in the late 1990s helped maintain the tech-stock bubble – social media is more widespread than ever. Meanwhile, coincides with an industry-wide move to commission-free trading, while most brokerages have made it easier to dub in risky instruments such as options.