Personal Finance
Rani Molla
6/3/24

How r/WallStreetBets became one of the most crucial reads in finance

The latest generation of stonks traders is not like the others. For his upcoming book, “The Trolls of Wall Street: How the Outcasts and Insurgents Are Hacking the Markets,” Nathaniel Popper gives an inside look at the retail traders behind some of the meme stock frenzy, and what makes them different than stock pickers of yore.

It was almost a decade between the launch of WallStreetBets and the beginning of the coronavirus pandemic. By then, millions of people had found Rogozinski’s subreddit and the strange culture that had grown out of that early trading contest. This had given a motley crew of teenagers and young adults an unlikely obsession with stocks, monetary policy and financial infrastructure, turning arcane topics into fodder for viral Reddit threads and racy TikTok videos. That would only increase once everyone was locked at home with little to do and, in many cases, with more cash sitting around than usual.

Read more in the excerpt.

$68B
amount retail investors spent on stocks in Q1 2024
Over 5X what it was in 2019
Millennials
More likely to own stock than any other generation

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Windup man

Long-term unemployment in the US has risen to a postpandemic high

The number of Americans who’ve been unemployed for over 27 weeks hit 1.9 million in August.

$17B
Rani Molla

Elon Musk’s $1 billion purchase of Tesla shares sent the stock soaring this morning — along with his personal wealth. Bloomberg’s Matt Levine calculated that the share price rise thanks to Musk’s purchase was enough to raise the total value of his stock by $17 billion.

However, as Levine also pointed out, it’s not as if Musk will realize that gain any time soon:

If you could spend $1 billion to make yourself $17 billion richer, and then cash out that $17 billion, that would be an amazing trade and you should do it all day long. But in practice, if buying $1 billion of stock makes your stock go up by $17 billion, then selling that $17 billion of stock will make your stock go down by much more.

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