GameStop shares have gone soaring again.
So why are investors buying these stocks again?
As the GameStop price fell back in early February, many of these small investors were counting their losses.
There have since been countless debates over the mania, including acongressional hearingin the US on February 18.
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Robinhood CEO Vlad Tenev has denied the allegations,offering his ownexplanation at the congressional hearing.
He stands accused in misrepresenting himself as an amateur and manipulating other users to follow his risky speculative strategies.
As he memorably told congress during the February 18 hearing, I like the stock.
Itsnot completely clearwhy the shares have been targeted again.
Itcould be linked tothe fact that the congressional hearing has passed.
Meme circulating on Reddits WallStreetBets during the second GME surge.
First, it is about the expansion of fintech and the ongoing decentralization of the financial market.
New technologies such as easy trading apps provide access to financial markets to a large number of amateurs.
Finance scholars have named this effect crypto-exuberance.
Social media posts might contain sequences of unidentifiable nonsense, offensive terms and never-ending slang.
This all makes it harder to assess the sentiments behind them.
But how would you use the academic software to analyse the content on r/WallStreetBets?
This a huge challenge.
The third and perhaps least obvious driving force is the pandemic.
A young generation of traders already blamed the older ones for the global financial crisis.
The government restrictions and the social isolation that they have caused have also arguably spiked rebellious sentiments.
At the same time, this situation creates an ideal environment for all sorts of market manipulations.
GameStops stock rally is driven by a combination of cultural and environmental factors.
