Last week, the world has seen a surge in GameStop, BlackBerry and AMC stocks, thanks to the WallStreetBets Reddit forum that has been nothing but a source of encouragement to optimistic investors. Now, new data from Appfigures today shows how the uptick in retail investing has also caused pushed apps like Robinhood and Reddit up above the top Apple Store Charts.
GamStop Stock Increase
Accoridng to 9to5Mac, ameStop has seen an incredible rise in stocks amounting to about 1,350% since the last month after a series of consecutive months of fall. Many pessimistic investors have been betting against GameStop's potential but the results prove them otherwise. The investment has been driven in large part by members of the WallStreetBets subreddit forum. Following the rise of GME stocks, other companies have also seen a push including AMC Entertainment Holdings (AMC), BlackBerry (BB), Nokia (NOK), Express (EXPR), and more.
Most of the retail traders that use the Robinhood app push stocks that are mostly shorted by hedge funds. An early report of the upsurge from Bloomberg describes the situation like this:
"In their frenzy, WSB's cocky hordes have managed to turn the tables in a game short sellers invented, spinning gold from the complacency of others. Before this year, GameStop was a cash register for bearish traders, who borrowed and sold more shares than the company issued. Hedge funds had been winning so long that they overlooked the tinderbox they were creating should sentiment turn."
Elon Musk Fuels the GameStock Surge, Sends Reddit and Robinhood Up the Charts
Elon Musk has been involved in the GameStop frenzy by riding with the tide and sending the stock even higher yesterday. He then posted an update in his official Twitter account sharing a link directly to the WallStreetBets subreddit. Thus, since then, Reddit has seen a surge of downloads making it the fourth most popular app in the appstore.
As AppleFigures puts it when talking about Reddit, "Our forecast is showing downloads at nearly 400,000 today, which is, by far, the most downloads Reddit's seen in a single day in the U.S., much like Robinhood. There's a lot more to the GameStop short squeeze story that isn't playing out on the App Store, but one thing is clear-Elon Musk is a kingmaker, and he knows it."
Gamestonk!! https://t.co/RZtkDzAewJ— Elon Musk (@elonmusk) January 26, 2021
On the other hand, most of the trading activities are taking place in Robinhood, which makes it today the top free popular stock trading app on the Appstore. As Appfirgures reports, soon enough, it may reach about 1 million new users. Many new users are now moving to apps like Robinhood in at the height of the stock rise. As of today, users are nearly at 700,000. Other trading apps have also seen a rise including Webull, among others.
The financial implications of the rise in the stock market is apparent, kickstarting many other apps in the Appstore up the charts. However, it's interesting to await what brings these apps to a sustained public interest in the coming weeks and months
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Written by Nikki D