By HANNAH SIEVERT
CENTRAL OREGON DAILY NEWS
A commotion in the stock market made national headlines this week as many struggling stocks received an unexpected financial boost from Reddit users.
One of those stocks to receive a boost is the stock of a local beloved attraction: Blockbuster.
Although Blockbuster is bankrupt, it still has a stock called BB Liquidating Inc. The stock surged more than 2,000% in the past week, according to Google Finance, moving from a worth of $.0033 one week ago to a high of $.26 Thursday.
Does it mean anything for the last Blockbuster on earth in Bend? Tyler Simones, a partner at Northwest Quadrant Wealth Management in Bend, said no.
“It will probably create some national news like we’ve been getting for the past five years,” Simones said. “That’s interesting, but as it relates to the business or the business owner, it’s not going to affect it.”
BB Liquidating Inc. was one of several stocks that Reddit users invested in to thwart the efforts of prominent Wall Street Investors.
Wall Street investors had previously bought stocks that weren’t doing well and used those struggling stocks to make money.
The investors make money by “shorting” the stocks, meaning they make a profit if the price of the stock drops.
But this past week, a group of Reddit users encouraged people to buy lots of those struggling stocks, which drove prices of the shares up and created big losses for those big investors.
“It was what we call in the business a short squeeze,” Simones said. “It just had never been done by these message boards by retail investors. There was this feeling out there that all these small investors were sticking it to the man, and that was happening a little bit.”
The stocks Reddit users bought included AMC Entertainment, Blackberry and Game Stop. Because of the small investors, Game Stop was valued at more than $10 billion Wednesday.
Simones said he doesn’t expect what happened this past week to change much about the stock market or the market’s regulations.
“None of the stock market was created for this,” Simones said. “It’s all just gambling and betting. We’ll see, it’ll be interesting to see if something does change but I’m not optimistic we’ll see change.”
Although BB Liquidating Inc. rose temporarily in worth Thursday morning, its stock dropped back down to $.07 by the afternoon.