{"video_id":"4c_80iqmAl4","title":"How The GameStop Bubble Happened 🚀🚀🚀","channel":"Techquickie","show":"Techquickie","published_at":"2021-05-05T14:58:16Z","duration_s":300,"segments":[{"start_s":0.16,"end_s":7.12,"text":"even if you're not into investing chances are you've heard about how a group of redditors have driven up the","speaker":null,"is_sponsor":0},{"start_s":4.64,"end_s":11.92,"text":"stock price of the venerable gamestop gme in order to troll a bunch of hedge","speaker":null,"is_sponsor":0},{"start_s":9.599,"end_s":15.679,"text":"fund managers although this is techwiki and not cash quicky we are going to give","speaker":null,"is_sponsor":0},{"start_s":13.92,"end_s":20.4,"text":"you a brief synopsis of the situation for some context and then talk about the","speaker":null,"is_sponsor":0},{"start_s":18.0,"end_s":25.039,"text":"tech side of things to better understand how this happened so the reason gamestop","speaker":null,"is_sponsor":0},{"start_s":22.8,"end_s":30.56,"text":"was targeted was because it's a heavily shorted stock shorting a stock is a high","speaker":null,"is_sponsor":0},{"start_s":28.24,"end_s":34.559,"text":"risk but potentially high reward play that works like this you pay a fee to","speaker":null,"is_sponsor":0},{"start_s":32.88,"end_s":38.48,"text":"borrow a stock from the owner then immediately sell that stock like that","speaker":null,"is_sponsor":0},{"start_s":36.399,"end_s":42.079,"text":"day you do eventually have to return the stock to the owner so by shorting it","speaker":null,"is_sponsor":0},{"start_s":40.48,"end_s":46.399,"text":"you're betting that the stock will go down in value allowing you to buy it","speaker":null,"is_sponsor":0},{"start_s":44.239,"end_s":49.2,"text":"back later for cheaper than you just sold it for giving it back to the","speaker":null,"is_sponsor":0},{"start_s":47.84,"end_s":54.96,"text":"original owner and keeping the difference from the price you sold it for and the price you bought it back for","speaker":null,"is_sponsor":0},{"start_s":52.399,"end_s":58.48,"text":"minus fees and interest gamestop is often shorted because with video game","speaker":null,"is_sponsor":0},{"start_s":56.96,"end_s":62.48,"text":"distribution becoming digital gamestop's more brick and mortar","speaker":null,"is_sponsor":0},{"start_s":60.8,"end_s":67.84,"text":"business model is seen as something that could fail in the near future you know","speaker":null,"is_sponsor":0},{"start_s":64.96,"end_s":73.6,"text":"kind of like blockbuster but as we said shorting is very risky since if the","speaker":null,"is_sponsor":0},{"start_s":70.159,"end_s":75.28,"text":"stock's price goes up instead of down","speaker":null,"is_sponsor":0},{"start_s":73.6,"end_s":80.24,"text":"you have to buy it back for more than you originally paid for it sometimes a","speaker":null,"is_sponsor":0},{"start_s":77.92,"end_s":83.6,"text":"lot more and as more and more people buy back a shorted stock because they're","speaker":null,"is_sponsor":0},{"start_s":82.08,"end_s":89.119,"text":"panicked about the price rising even more it just keeps driving the price up","speaker":null,"is_sponsor":0},{"start_s":86.479,"end_s":92.56,"text":"even more because of this risk stock shorting has become associated with","speaker":null,"is_sponsor":0},{"start_s":90.64,"end_s":96.32,"text":"hedge funds which typically make high risk but potentially lucrative","speaker":null,"is_sponsor":0},{"start_s":94.079,"end_s":100.56,"text":"investments for organizations or for wealthy individuals and some of the","speaker":null,"is_sponsor":0},{"start_s":98.24,"end_s":104.56,"text":"risky plays they've made have hurt the u.s economy","speaker":null,"is_sponsor":0},{"start_s":102.0,"end_s":109.04,"text":"meaning that they're not very well liked combine that sentiment with a feeling","speaker":null,"is_sponsor":0},{"start_s":106.32,"end_s":113.52,"text":"that gamestop might be undervalued and the rush was on to buy gamestop shares","speaker":null,"is_sponsor":0},{"start_s":111.28,"end_s":118.159,"text":"drive up the price and force short sellers to buy the stock back in a panic","speaker":null,"is_sponsor":0},{"start_s":116.079,"end_s":122.479,"text":"making gamestop and even more lucrative investment at least for the short term","speaker":null,"is_sponsor":0},{"start_s":120.32,"end_s":127.119,"text":"okay so we've explained a bit about how short selling works but how were a bunch","speaker":null,"is_sponsor":0},{"start_s":124.719,"end_s":132.08,"text":"of individual investors on reddit able to beat these powerful hedge funds with","speaker":null,"is_sponsor":0},{"start_s":129.599,"end_s":136.4,"text":"millions of dollars even bankrupting one of them a huge part of it is how online","speaker":null,"is_sponsor":0},{"start_s":134.64,"end_s":140.0,"text":"services and apps have made investing far more accessible","speaker":null,"is_sponsor":0},{"start_s":138.16,"end_s":143.12,"text":"instead of calling up a broker and using traditional trading software that","speaker":null,"is_sponsor":0},{"start_s":141.36,"end_s":147.52,"text":"assumes the user is already familiar with investing newer financial tech or","speaker":null,"is_sponsor":0},{"start_s":145.44,"end_s":150.48,"text":"fintech firms such as robinhood which we'll talk about more in a little minute","speaker":null,"is_sponsor":0},{"start_s":148.959,"end_s":154.16,"text":"here have tried to make opening up investing to the masses with easy to","speaker":null,"is_sponsor":0},{"start_s":152.239,"end_s":157.84,"text":"understand interfaces a core part of their business models there are also","speaker":null,"is_sponsor":0},{"start_s":156.08,"end_s":162.16,"text":"companies that specialize in what's called robo advising an algorithm-based","speaker":null,"is_sponsor":0},{"start_s":160.72,"end_s":167.68,"text":"approach to investing for those who don't know much about investments or simply don't want to have to manage the","speaker":null,"is_sponsor":0},{"start_s":165.12,"end_s":172.239,"text":"details themselves typically you tell a robo-advising service such as betterment","speaker":null,"is_sponsor":0},{"start_s":170.0,"end_s":176.959,"text":"or wealthfront what your investing goals are and how much risk you're willing to","speaker":null,"is_sponsor":0},{"start_s":174.08,"end_s":180.239,"text":"take on and then the algorithms invest your money for you rejiggering things on","speaker":null,"is_sponsor":0},{"start_s":178.8,"end_s":184.72,"text":"the fly depending on what the market's doing and oftentimes even making tweaks","speaker":null,"is_sponsor":0},{"start_s":182.72,"end_s":188.239,"text":"that can reduce your liability come tax time robo advisors also have cheaper","speaker":null,"is_sponsor":0},{"start_s":186.56,"end_s":192.08,"text":"fees than traditional brokerages due to lower overhead helping these services","speaker":null,"is_sponsor":0},{"start_s":190.239,"end_s":197.28,"text":"take off big time over the last few years with many managing tens of","speaker":null,"is_sponsor":0},{"start_s":194.56,"end_s":201.04,"text":"billions of dollars in combined assets and even though the aforementioned robin","speaker":null,"is_sponsor":0},{"start_s":198.8,"end_s":206.08,"text":"hood doesn't offer robo investing it's easy interface and no commission trades","speaker":null,"is_sponsor":0},{"start_s":202.72,"end_s":208.56,"text":"have made it very popular but you might","speaker":null,"is_sponsor":0},{"start_s":206.08,"end_s":212.64,"text":"also have heard that robin hood has had a lot of ire directed at it recently","speaker":null,"is_sponsor":0},{"start_s":210.799,"end_s":217.2,"text":"after the gamestop short squeeze we described robin hood made the decision","speaker":null,"is_sponsor":0},{"start_s":214.4,"end_s":220.56,"text":"to restrict trades involving game stop stonks","speaker":null,"is_sponsor":0},{"start_s":218.319,"end_s":224.56,"text":"as well as other stocks redditors were targeting robin hood reportedly did this","speaker":null,"is_sponsor":0},{"start_s":222.64,"end_s":228.879,"text":"to limit its own risk in the event gamestop's price collapsed but the move","speaker":null,"is_sponsor":0},{"start_s":227.2,"end_s":233.04,"text":"was extremely unpopular triggering lawsuits accusations from investors that","speaker":null,"is_sponsor":0},{"start_s":231.12,"end_s":237.439,"text":"they were colluding with hedge funds and even statements from both republican and","speaker":null,"is_sponsor":0},{"start_s":235.2,"end_s":240.72,"text":"democratic politicians wondering why hedge funds were able to trade","speaker":null,"is_sponsor":0},{"start_s":238.64,"end_s":245.2,"text":"securities that individual investors suddenly couldn't wow it looks like","speaker":null,"is_sponsor":0},{"start_s":243.12,"end_s":250.519,"text":"activist investing actually did something i wonder if we can rally tech","speaker":null,"is_sponsor":0},{"start_s":247.76,"end_s":254.48,"text":"quickies fanbase to pump up the value of ltteststore.com but first we need to go","speaker":null,"is_sponsor":1},{"start_s":253.599,"end_s":260.239,"text":"public big thanks to our sponsor private internet access vpn pie helps you mask","speaker":null,"is_sponsor":1},{"start_s":258.72,"end_s":264.16,"text":"your true ip address and encrypts your traffic with reliable service and no","speaker":null,"is_sponsor":1},{"start_s":262.24,"end_s":267.6,"text":"bandwidth caps it has configurable encryption and an internet kill switch","speaker":null,"is_sponsor":1},{"start_s":266.08,"end_s":271.12,"text":"which keeps you in control of your connection you can combine pia with","speaker":null,"is_sponsor":1},{"start_s":269.52,"end_s":274.8,"text":"private browsing and make websites think you're in a different country plus you","speaker":null,"is_sponsor":1},{"start_s":272.96,"end_s":279.68,"text":"can connect up to 10 devices at once with clients for Windows mac Android iOS","speaker":null,"is_sponsor":1},{"start_s":277.04,"end_s":283.6,"text":"and Linux pia has also recently launched its new and improved next gen network","speaker":null,"is_sponsor":1},{"start_s":281.6,"end_s":289.12,"text":"which offers even more security with over 25 000 servers in 77 countries so","speaker":null,"is_sponsor":1},{"start_s":287.44,"end_s":292.72,"text":"what are you waiting for try pia risk fee for 30 days at the link below so","speaker":null,"is_sponsor":1},{"start_s":291.759,"end_s":296.32,"text":"thanks for watching guys if you like this video hit like hit subscribe and","speaker":null,"is_sponsor":0},{"start_s":294.96,"end_s":301.44,"text":"hit us up in the comments section with your suggestions for topics that we should cover in the future","speaker":null,"is_sponsor":0}],"full_text":"even if you're not into investing chances are you've heard about how a group of redditors have driven up the stock price of the venerable gamestop gme in order to troll a bunch of hedge fund managers although this is techwiki and not cash quicky we are going to give you a brief synopsis of the situation for some context and then talk about the tech side of things to better understand how this happened so the reason gamestop was targeted was because it's a heavily shorted stock shorting a stock is a high risk but potentially high reward play that works like this you pay a fee to borrow a stock from the owner then immediately sell that stock like that day you do eventually have to return the stock to the owner so by shorting it you're betting that the stock will go down in value allowing you to buy it back later for cheaper than you just sold it for giving it back to the original owner and keeping the difference from the price you sold it for and the price you bought it back for minus fees and interest gamestop is often shorted because with video game distribution becoming digital gamestop's more brick and mortar business model is seen as something that could fail in the near future you know kind of like blockbuster but as we said shorting is very risky since if the stock's price goes up instead of down you have to buy it back for more than you originally paid for it sometimes a lot more and as more and more people buy back a shorted stock because they're panicked about the price rising even more it just keeps driving the price up even more because of this risk stock shorting has become associated with hedge funds which typically make high risk but potentially lucrative investments for organizations or for wealthy individuals and some of the risky plays they've made have hurt the u.s economy meaning that they're not very well liked combine that sentiment with a feeling that gamestop might be undervalued and the rush was on to buy gamestop shares drive up the price and force short sellers to buy the stock back in a panic making gamestop and even more lucrative investment at least for the short term okay so we've explained a bit about how short selling works but how were a bunch of individual investors on reddit able to beat these powerful hedge funds with millions of dollars even bankrupting one of them a huge part of it is how online services and apps have made investing far more accessible instead of calling up a broker and using traditional trading software that assumes the user is already familiar with investing newer financial tech or fintech firms such as robinhood which we'll talk about more in a little minute here have tried to make opening up investing to the masses with easy to understand interfaces a core part of their business models there are also companies that specialize in what's called robo advising an algorithm-based approach to investing for those who don't know much about investments or simply don't want to have to manage the details themselves typically you tell a robo-advising service such as betterment or wealthfront what your investing goals are and how much risk you're willing to take on and then the algorithms invest your money for you rejiggering things on the fly depending on what the market's doing and oftentimes even making tweaks that can reduce your liability come tax time robo advisors also have cheaper fees than traditional brokerages due to lower overhead helping these services take off big time over the last few years with many managing tens of billions of dollars in combined assets and even though the aforementioned robin hood doesn't offer robo investing it's easy interface and no commission trades have made it very popular but you might also have heard that robin hood has had a lot of ire directed at it recently after the gamestop short squeeze we described robin hood made the decision to restrict trades involving game stop stonks as well as other stocks redditors were targeting robin hood reportedly did this to limit its own risk in the event gamestop's price collapsed but the move was extremely unpopular triggering lawsuits accusations from investors that they were colluding with hedge funds and even statements from both republican and democratic politicians wondering why hedge funds were able to trade securities that individual investors suddenly couldn't wow it looks like activist investing actually did something i wonder if we can rally tech quickies fanbase to pump up the value of ltteststore.com but first we need to go public big thanks to our sponsor private internet access vpn pie helps you mask your true ip address and encrypts your traffic with reliable service and no bandwidth caps it has configurable encryption and an internet kill switch which keeps you in control of your connection you can combine pia with private browsing and make websites think you're in a different country plus you can connect up to 10 devices at once with clients for Windows mac Android iOS and Linux pia has also recently launched its new and improved next gen network which offers even more security with over 25 000 servers in 77 countries so what are you waiting for try pia risk fee for 30 days at the link below so thanks for watching guys if you like this video hit like hit subscribe and hit us up in the comments section with your suggestions for topics that we should cover in the future"}