WallStreetBets—also called r/wallstreetbets or just WSB—is a popular Reddit community that’s made waves in the world of investing. What started as a place to talk about risky trading strategies has turned into a major player capable of shaking up the traditional stock market.
WSB became famous during the 2021 “meme stock” craze. That’s when members teamed up to drive up the prices of heavily shorted stocks like GameStop (GME) and AMC Entertainment (AMC), catching Wall Street off guard. These coordinated moves often triggered what’s called a “short squeeze,” causing massive price spikes and drawing attention from financial regulators.
But WSB isn’t just about pumping meme stocks anymore. This community has grown into something bigger, with its own culture, language, and influence. Keep reading to learn where it all started, what it stands for, how it affects stock prices, which companies it targets, and the risks (and rewards) of jumping on the bandwagon.
What Is WallStreetBets?
WallStreetBets began in 2012 as a small Reddit group for people interested in high-risk trading. Over time, it became a lively space where bold and unconventional investment ideas are celebrated, not criticized.
WSB has its own lingo too. Terms like “diamond hands” (holding a stock no matter how crazy the market gets) and “YOLO” (you only live once—go big or go home) reflect the group’s fearless, all-or-nothing attitude.
The rise of easy-to-use trading apps, plus pandemic lockdowns and stimulus checks, brought in millions of new, mostly young traders. Many of them were tired of traditional Wall Street advice and wanted to take matters into their own hands. By 2020, WSB had exploded in popularity—and power.
This community blends social media buzz, options trading, and a rebellious spirit to target specific stocks. Sometimes it’s old-school retailers like GameStop. Other times, it’s big tech names. But one thing’s for sure: it’s always a high-stakes game. While some people make quick fortunes, others lose big if the stock swings the wrong way.
How WSB Affects Stock Prices
WSB has shown it can seriously move stock prices. When enough people on the forum get excited about a stock, they often jump in all at once. This creates huge buying pressure, which can cause the price to skyrocket—especially in stocks that are heavily shorted.
When a short squeeze happens, short sellers (people betting a stock will drop) are forced to buy back shares to cover their losses. That only pushes the price up more, creating a feedback loop of rising prices.
Social media plays a huge role here too. Memes, jokes, and viral posts fuel a sense of urgency and FOMO (Fear of Missing Out). That hype draws in even more buyers, increasing both trading volume and volatility. But these wild price swings often don’t last long.
Stocks That WSB Has Targeted
WSB is known for going after certain kinds of stocks—especially ones that Wall Street is betting against. Here are some of the most well-known examples:
- GameStop (GME): This was the poster child of the 2021 meme stock mania. WSB users piled into the stock, pushing it from around $20 to nearly $500 at its peak. It was a bold move meant to stand up to hedge funds and show the power of retail investors.
- AMC Entertainment (AMC): Like GameStop, AMC became a favorite of WSB. Despite being hit hard by the pandemic, its stock soared thanks to retail traders. It’s another example of WSB backing underdogs.
- Tesla (TSLA): Tesla has caught WSB’s attention too, but not because of short squeezes. Instead, members are drawn to its tech, its big swings, and its headline-making CEO, Elon Musk.
- Nvidia (NVDA): With AI and the metaverse in the spotlight, Nvidia has become a target for its growth potential. Its stock is also known for being volatile—something WSB traders often seek out.
- SPDR S&P 500 ETF (SPY): This one is a bit different. It’s an ETF that tracks the overall market. Its appearance on WSB shows that the community is starting to think bigger, using tools beyond individual stocks.
Also Read: How Do You Build an Emergency Fund While Investing?
The Risks and Rewards
Investing based on WSB hype can be thrilling—but also dangerous. Yes, there’s a chance to make big money fast, especially if you catch the right wave during a short squeeze. But you can also lose just as quickly. Prices can shoot up in hours and crash just as fast.
Many traders on WSB ignore traditional investing advice. They often skip things like analyzing a company’s financial health or thinking about long-term performance. Instead, they focus on momentum, social media buzz, and group excitement.
Traditional investors usually play it safer. They look at a company’s numbers, spread out their investments (called diversification), and manage risk carefully. WSB traders? They often bet big on just one or two stocks, hoping for a massive payoff.
This high-risk style isn’t for everyone. While some people walk away with big gains, others end up with huge losses.