Update 11 September 2023, 21.20 EST: the article previously implied that Ken Griffin was investigated by the House Financial Services Committee, but this is inaccurate as Griffin, nor Citadel, were being investigated, nor did they lose money on GME. We regret the error
Another day, another biographical comedy drama about rich people ruining the world and getting away with it. The soon to be released Dumb Money tells the story of the GameStop stock controversy that erupted in early 2021, which saw a group of personal, small-scale investors try to take on Wall Street and nearly win, despite the might they were up against.
Unlike many underdog stories, this doesn’t quite have the happy ending that some viewers may prefer, but there’s no doubt what happened was a wild ride and deserves to be chronicled in film form. Whether you were around to watch the entire thing unfold on Reddit and other places where amateur investors gathered, or only vaguely heard about what was going on and want to know more, read on to discover what the movie Dumb Money is based on!
What is the movie Dumb Money based on?
Dumb Money chronicles a story of financial skullduggery that is centered around stock for a company called GameStop. In the late 2010s, GameStop was a company made up of brick and mortar stores that sold videogames, and was struggling thanks to increasing dependency on online shopping. The stock price declined massively as more and more financial firms and hedge funds bet on it failing, but then in mid-2019 a large asset management firm acquired a stake in the company, signalling to investors there was more value in the stock than previously thought.
The investing subreddit /r/WallStreetBets was known for occasionally taking on meme stocks and offering its users information on high-risk, high-reward transactions. Many of their members, led by an investing influencer named Keith Gill, began buying up GameStop stock. They soon became aware that they could trigger a short squeeze. This means driving up prices quickly, so those who had been betting on the company failing would be forced to sell to cover the losses they were making before they got too big. Effectively, they were taking on the big boys, and had the means to do so.
In January 2021 this all came to a head, with multiple hedge funds and other financial services companies losing billions. While much of the short squeeze was driven by small, personal investors like Gill and those who followed him, other funds also got in on the action. By January 28 the GameStop stock (GME) was valued at USD 500 per share, which was thirty times what it had been at the beginning of the month. Later that day, many brokerages (notably Robinhood and other investing apps that targeted retail investors) halted the buying of GME, which attracted criticisms of market manipulation form all corners of the political spectrum.
The games continued for a couple of months afterwards, and soon even Congress was involved, launching an investigation into Robinhood and various hedge funds that may have been involved in market manipulation. In February the House Financial Services Committee held a hearing in which they questioned Gill, various hedge fund managers, and many others about the events of the short squeeze. So far, no regulations have been imposed on financial services companies who attempted market manipulation during the saga.
Who is starring in Dumb Money?
Dumb Money has the sort of ensemble cast that casting directors dream of gathering together:
- Paul Dano as Keith Gill. Gill is a retail investor and investing influencer who was one of the main driving forces behind the rise in GME prices. He had to testify in front of Congress about his role in the short squeeze
- Pete Davidson as Kevin Gill, Keith’s less savvy but very supportive brother
- America Ferrera as Jennifer Campbell, one of Keith’s followers who is an early adopter of the GME stock and ends up becoming embroiled in the situation
- Nick Offerman as Kenneth C. Griffin, a wealthy investor who runs Citadel. Users of WallStreetBets claimed Griffin was involved in market manipulation at the time of the short squeeze, but there is no evidence of this
- Seth Rogen as Gabe Plotkin, head of Melvin Capital, another fund that lost billions and was also alleged to have used their leverage to stop the buying of GME
- Vincent D’Onofrio as Steve Cohen, owner of the New York Mets and another investor who helped Plotkin when his shares were spiralling
- Sebastian Stan as Vlad Tenev, the founder of investing app Robinhood that was at the center of the controversial decision to stop selling GME shares when they hit over $500
- Shailene Woodley as Caroline Gill, Keith’s wife
- Anthony Ramos as Marcus, a GameStop store clerk who becomes an investor and makes a lot of money
Other cast members include Dane DeHaan, Myha’la Herrold, Rushi Kota, and Taila Ryder.
When is Dumb Money out?
Dumb Money is set for a limited release in seleted theaters across the States on Sept. 15. It is due to have a wider release two weeks later, on Sept. 29. International release dates vary.
Where can I watch Dumb Money?
You can only watch Dumb Money in theaters for now. There’s no news about whether or not the rights for it will be snapped up by any of the big streaming services.