From what I understand, and I really don’t understand (but am going to throw money at it anyway):
- people want to stick it to Wall Street
- people want to get rich
- people buy cheap stocks en masse
- this causes short sellers to have to re-up to avoid losing out
- this balloons the stock price
- everyone then basically tries to get out at or near the peak, bringing it tumbling back down
Same thing happened with VW, I think, that is happening with BlackBerry and GameStop. There’s no real logical reason for the stocks to be going up, it’s simply a matter of people buying lots and forcing it to go up.
Again, this gained from a pretty low level understanding, but it’s the best I got.
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