GameStop shows rising power of retail traders, says Reddit co-founder

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GameStop shows rising power of retail traders, says Reddit co-founder


Reddit Inc.’s unprecedented influence on GameStop Corp. stock shows that markets must adapt to a world where retail investors are gaining some of the power big financial firms have long held, according to Alexis Ohanian, co-founder of the online forum.

“This is something, I think, for a lot of people, that was a statement as much as an investment,” Ohanian, who left Reddit’s board last year, told Bloomberg Television on Thursday. “I’d equate it to, like, folks voting with their dollars in order to get back at or make a statement towards big finance.”

Robinhood Markets Inc. and other online brokerages curbed trading in GameStop and AMC Entertainment Holdings Inc. on Thursday after users in Reddit’s WallStreetBets forum appeared to send the stocks surging. Ohanian called the move by Robinhood “pretty shocking” and “like the very thing all of these people are railing against.” He called the ensuing criticism of Robinhood “a very justified outrage.”

Asked about the risk that internet forums can pose as a source of potential financial misinformation or market hype, Ohanian punted, saying the same question exists around political issues. “This is a question for the decade,” he said.





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