The GameStop Frenzy Could be the Beginning of Something Bigger Says This CEO

According to VaynerMedia CEO Gary Vaynerchuk, the historical short squeeze on Game Stop shares earlier this year may be the beginning of investing in the digital age.

“You’re seeing the maturity of the internet itself. I think people are incredibly naive to how early we are in all of this,” the VaynerMedia CEO said on “Fast Money” a day before the GameStop trade will be the subject of a congressional hearing.

“I look at us as cavemen and women in the digital age,” he said.

The CEO doesn’t believe the Reddit-sparked GameStop frenzy as just a one-off event in part to how social media keeps us connected.

Vaynerchuk thinks the future of virtual reality and blockchain technologies will only empower the public and disrupt traditional business.

“I think it changes because people realizing the power of communities forming have an ability to focus and impact and we have to adjust to that,” he explained.

Since the big short squeeze, GameStop shares have retraced and are down 90% below its peak price during the height of the squeeze.

“I think that it is not an enigma, it is not an anomaly … it leads to alternative investments, and people are looking at different trades right now,” he said of future volatile trading. “There’s always a counter-reaction and the internet brings people together, and the masses have a lot of power.“s

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.