The GameStop Insurrection Spreads

Al Powers/Invision/AP
Al Powers/Invision/AP

Everyone knows shares of GameStop are soaring.

But the huge retail investor-driven rally is not confined to the video game shop. Shares of headphone manufacturer Koss, for example, are up 275 percent to an all-time high. Shares of AMC are up 182 percent. Blackberry shares are up 16 percent. Shares of Bed, Bath, & Beyond rose around 30 percent on Wednesday. Shares of Nokia are up 40 percent.

Brokerages are starting to limit leverage for investors in some of these surging stocks. TD Ameritrade told customers on Wednesday that it has placed curbs on some transactions in Gamestop and AMC.

Many of the smaller investors who have organized around the Reddit Group r/wallstreetbets see themselves as engaged in a populist uprising against the Wall Street establishment.

“People are tired of feeling like the stock market is controlled by big evil institutions, and it is satisfying when a band of misfits on Reddit can stick it to the hedge funds,” Bloomberg’s Matt Levine wrote in his daily email Wednesday.

On CNBC, people are saying the surge in GameStop shares threatens the “integrity of the market.” At WallStreetBets, there are 15,000 comments on a discussion thread today.

GameStop was “the most traded equity on the planet” Tuesday, according to Bloomberg analyst Eric Balchunas.

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