PiiQ Media has recently released a report that claims to have discovered social media bots to play a massive role in the recent GameStop stock market climb, along with other "Meme" stocks in Reddit's platform. The r/WallStreetBets has been a sensationalized and highly trending stock trading event during the start of 2021, resulting in massive gains for these companies.
NEW YORK, NEW YORK - SEPTEMBER 16: People pass a GameStop store in lower Manhattan on September 16, 2019 in New York City. GameStop has announced that they will be closing between 180 and 200 stores before the end of the fiscal year due to a drop in sales.
Upon those under the popular Reddit Stock Trading hype last January, GameStop and AMC Theater were among the most prominent companies to have received massive boosts in stock and investments. GameStop has risen to almost 1,915 percent increase in recent events, which is one of the best performances of the company in the market.
GameStop has been one of the hottest topics during the start of 2021, and it has resulted in the company breaking its recent record of achieving the multi-billion mark of valuation in the stock market. Apart from this, GameStop has maintained a massive spot in the market and is not valued at more than $200 per share, and still seeing a climb.
GameStop, Meme Stocks Aided by Social Media Bots
According to Reuter's report, PiiQ Media and its team of cybersecurity analysts have revealed that GameStop and other "meme" stocks that have received massive fundings and investments were aided by social media bots. This boosted the companies and entities' prominence in social media, effectively helping it achieve popularity and funding.
The news comes from the recent lawsuit that involved Reddit in the probe to investigate how the stock trading frenzy of early 2021 has achieved so much buzz and fame in the public, gathering massive recognition. The Reddit CEO Steve Huffman has recently claimed about the company's standard of having no bots on its systems.
PiiQ Media has claimed that there were unusual behaviors in the stock market and that the analysts have discovered "artificial behavior" occurring in the platform during the same time. The probe is spearheaded by the House of Representatives' Committee on Financial Services and aims to determine how Reddit's r/WallStreetBets influences GameStop stocks.
GameStop Under SEC Investigation for Social Media Bots
Currently, stock trading for GameStop is suspended and almost 15 companies that are in business with the gaming retailer face the effects of this probe. The US Securities and Exchange Commission claims that GameStop's stock has shown patterns of unusual trading activity on the platform, and alleges that it had something to do with bots.
Suspicious and trading with social media bot boosters are prohibited, especially in the stock market, in order to provide fair grounds for all companies who undergo stock investments and sale. Moreover, the presence of foreign actors and entities in stock trading compromises the United States' integrity in the stock market.
Related Article: Reddit CEO Defends WallStreetBets Subreddit: 'It Was Not Led by Bots or Foreign Entities
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Written by Isaiah Alonzo
