Recently the world witnessed the effects of a small but determined digital revolution. Reddit users from a thread called WallStreetBets began buying US-based gaming store GameStop stocks at an alarming rate. Using free trading apps like Robinhood, these traders drove the nearly bankrupt company’s stock price from 18 dollars to almost 300 dollars in a few weeks. Hedge funds and Wall Street companies are flabbergasted. Many large funds may lose millions of dollars, while the ordinary Reddit traders may make thousands.
This stock manipulation has far-reaching consequences. Politicians, economists, and ordinary people are all unsure of the long-term effects of the movement. Some hail the action as a Robin Hood-esque escapade – the poor stealing from the rich. Others see the movement as undoing traditional banking methods. Who knows what will come when the dust settles. Some people will make money, and some will lose money.
But if you aren’t a stock trader, what implications does the GameStop crisis have for you? What lessons can direct selling business owners take from this event?
- Digital tools are powerful. Digital trading apps like Robinhood, used by Reddit users, allowed this phenomenon to occur. A phone app used by thousands has led to this unforeseen event. This episode isn’t the first time digital tools have disrupted the market, and it won’t be the last. It’s time to make sure your business has the digital tools to succeed.
- Traditional business methods are changing. Prominent hedge funds and Wall Street did not see this phenomenon coming. It came out of nowhere from a group of highly motivated, organized people who utilized their collective power for change. The lesson for business owners: don’t be afraid to think outside the box, try new methods, or take your business down an untraditional route. You may find a new way to succeed.
- Communication is key to success. All it took for such a considerable stock market manipulation was a Reddit thread. Imagine what your business could do with constant, targeted communication like this? Utilize digital apps to stay connected, and your company may soar to new heights.
The GameStop stock crisis shows just how powerful digital tools can be. Kind of like how our TeamLink Mobile app and Engagement Platform revolutionize the direct sales process.
The direct selling world is changing fast, and digital tools, like ours, give you the power to manage that change in new and exciting ways. Don’t miss out on your chance to join the digital revolution. Arm yourself with the tools that will help your business navigate this new way of life.