Reddit CEO said r / WallStreetBets a forum to support GameStop’s unlikely rally shows the power of “everyday people” to institutional investors.
Steve Huffman, CEO of Reddit, was an online geek who fueled GameStop’s trading frenzy last month.
Reddit! r / WallStreetBets bet on the company as a consumer who bought shares of GameStop’s “meme stock”. , Make super millionaires and members of parliament.
In an interview with The Wall Street Journal, Huffman, who co-founded the company with Alexis Ohanian and Aaron Swartz, said the enthusiasm proved Reddit’s ability to attract and organize “everyday people.”
“The whole event shows the power of a large community of everyday people,” Huffman said. “Only large institutional and professional investors can enter the stock market.”
Some members of Reddit’s r / WallStreetBets said they felt that the GameStop rally represented the everyday American populist victory over wealthy investors. Mark Cuban praised Reddit’s r / WallStreetBets for “changing the game” by demonstrating the power of individuals to drive the market.
However, the moderator of r / WallStreetBets fought internally after the founder of the forum sold his story for a movie deal. Reddit has banned a group of inactive r / WallStreetBets moderators trying to hijack the forum to get some of the movie deals.
According to Huffman, unpaid moderators of forums like r / WallStreetBets have room to moderate their community.
“It’s really powerful when it’s written by your peers in the context of the community,” he told the journal. “Think of it as the difference between a parent saying” like “and a friend saying” like “. The latter is very important.
Huffman added that the company attracted new advertisers during the trading frenzy in late January. GameStop’s inventory has since fallen to about $ 63.
Reddit aired a 5-second Super Bowl ad commenting on the GameStop story. The company said it had no plans to air ads during the game, but the GameStop rally urged Reddit to spend its “whole marketing budget” on short airtime.
“One of the things we learned from our community last week is that when Underdog comes up with a common idea, we can achieve almost everything,” Reddit’s ad read. Reddit didn’t immediately respond to Insider’s request for comment.