Blackberry stock price crashes 100% as WSB investors refuse to go away

We are witnessing another insane day on Wall Street as ‘Wallstreetbets’ trades continue to create major disruptions in traditional financial markets. 

Fundamental analysis: WSB is back

r/WallStreetBets is back on Reddit. This forum has been the centre of the battle between major Wall Street investors and WSB investors has been banned from Discord and got locked and hidden on Reddit, but it became publicly available about an hour later. 

“Today, we decided to remove the server and its owner from Discord for continuing to allow hateful and discriminatory content after repeated warnings,” Discord said in a statement.

The subreddit has been encouraging speculators to buy a handful of stocks including GameStop and AMC to push the share price, spooking short-selling investors. 

However, a new Discord server was created and the subreddit went public once again, prompting investors to buy the stocks once again, sending their prices back up.

While GameStop stock has been on a frenzy over recent days, market analysts said it happened due to quirks in the market, rather than because of actual increased value for the company. Interestingly, no “quirks” in the market were present when 144% of Gamestop’s float was short.

In the meantime, online broker firms Robinhood and Interactive Brokers have restricted trading of certain stocks, including BlackBerry (NYSE: BB). GameStop (NYSE: GME) stock is also down heavily today. 

Technical analysis: Another volatile trading session

Blackberry stock price is trading about 40% lower on the day after it gained 32.66% yesterday. Overall, shares are trading over 130% higher in January, although they were up more than 400% at one point yesterday. 

Compared to yesterday’s highs, BB stock price is now trading nearly 100% lower. Given how quickly prices move up and down these days, I won’t be surprised if we are back near yesterday’s highs before the weekend.  

Summary

Wallstreetbets community is back on Reddit and Discord, pushing the prices of GameStop and AMC back up. In the meantime, the Blackberry stock price has moved sharply lower amid the WSB frenzy.