Gamestop (GME): Why is it moving everything else?

Retail traders are the new kids on the block.
Is being short, small and mid-cap stocks too dangerous now?
PLTR, BBBY, LGND and other all show strong gains for 2021

Ivan Brian FXStreet

Gamestop (GME) is the phenomenon of 2021 so far. The move in Gamestop may have far-reaching consequences for the future operation of the stock market. The retail investor can no longer be ignored. Power to the people!

Bulls, Bears and Bees!

We are familiar with bulls and bears and how they battle in the stock market, but we are witnessing the entrance of a new participant, the Bee! The retail bees work in their wallstreetbets hive, looking out for one another against institutional invaders! The retail bees swarm over bears trying to take their honey (tendies!), keeping it all for themselves in the hive. The swarm overpowers, the bees must not be disturbed, the bees will sting all bear shorts!

Gamestop (GME): All shorts are targets now

The Gamestop effect may have changed the way the market operates. Certainly, for some of the smaller, mid-cap stocks being short has become a much more dangerous proposition. Hedge funds have been burned on Gamestop (GME). Melvin Capital had to be bailed out by Citadel. Citroen research was squeezed out of its short.

The broader effect

All stocks with large short interest are targets now. Those meeting the right criteria of large short interest, small to medium cap and easy access to trading are seen as targets. Retail and now institutions are increasingly looking for these stocks and as can be seen from the price moves of a selected few the ripple effect from Gamestop (GME) is clear.

AMC Entertainment Holdings (AMC): Short interest 30%

Blackberry (BB): Short interest 6%

Blackberry shares do not have a huge short interest when compared to stocks such as Gamestop (GME), but BB still has been one of the most talked-about stocks on the wallstreetbets reddit boards. Blackberry shares are up 185% for 2021.

Bed Bath & Beyond (BBBY): Short interest 63%

Another heavily shorted stock and heavily discussed on the wallstreetbets reddit site. BBBY seemed the perfect candidate for a short squeeze but Gamestop took over. However, BBBY has still managed a not too shabby return of over 100% for 2021.

Palantir Technologies (PLTR): Short interest 10%

Not the biggest of short interest we have seen for PLTR, but Palantir has still been heavily discussed on retail sites. PLTR shows a gain of 50% for 2021.

The author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

This article is for information purposes only. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice. It is important to perform your own research before making any investment and take independent advice from a registered investment advisor.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to accuracy, completeness, or the suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. The author will not be held responsible for information that is found at the end of links posted on this page.

Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

AUD/USD bounces back toward 0.6950 on fresh USD supply

AUD/USD bounces back toward 0.6950 in the Asian session on Friday. The US Dollar retreats from 17-month highs as traders take profits off the table ahead of the all-important US Nonfarm Payrolls report. Meanwhile, the Australian Dollar draws support from reviving expectations of a November interest rate hike amid elevated global yields and inflation risks.

USD/JPY struggles near 158.00 as USD retreats ahead of NFP

USD/JPY is struggling for fresh impetus near 158.00, moving away from the top end of its weekly range in the Asian session on Friday, after hotter-than-expected Tokyo CPI and amid a broad US Dollar retreat. Traders reposition themselves ahead of US Nonfarm Payrolls.

Gold fades the earlier optimism; back below $4,200

Gold could not sustain the post-NFP bull run past the $4,200 mark per troy ounce, receding toward the $4,180 region at the end of the week. The precious metal’s inconclusive price action comes amid fresh selling pressure hurting the US Dollar as investors assess the latest NFP data.

Week ahead: Fed minutes in the spotlight amid bond market rout

The first full week of October and the final quarter of the year get underway with little fanfare in terms of the economic agenda. But far from being short on excitement, the coming week will test market nerves, as government bond yields continue to soar on growing worries that the energy crisis will only get worse, fuelling inflation.

CFTC Report: Speculators turn more defensive as Oil exposure falls

The week in one sentence: During the week leading up to September 29, long positions in crude oil were significantly reduced, while short positions in the Canadian Dollar went up. In addition, the positioning of the Australian Dollar and the Japanese Yen declined, while Coffee buying stood out against a more general background of defensiveness.

The Euro is near a one-year low: Inflation could trigger its rebound, not its fall

EUR/USD has fallen to its lowest level since May 2025. The pair hit 1.1312 on Wednesday and trades well below the January peak of 1.2082. The decline reflects a powerful combination of US Dollar strength, geopolitical uncertainty and renewed concerns about Europe's exposure to higher energy prices.