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Dumb Money explained

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Welcome to our Colossus Movie Guide for Dumb Money. This guide contains our detailed library of content covering key aspects of the movie’s plot, ending, meaning, and more. We encourage your comments to help us create the best possible guide. Thank you!

What is Dumb Money about?

Keith Gill sits in front of his balance sheet on his computer in Dumb Money

The term “dumb money” refers to your average everyday at-home investor—a stark contrast from the professional “smart money” investor who understands how to manipulate and profit hugely from the stock market. But 2021 during the GameStop trading frenzy, these average Joes shook up Wall Street by skyrocketing the company’s shares. This is the dynamic captured by Dumb Money—a David-vs-Goliath tale where small-time traders banded together online to shake up the stock market status quo. Through GameStop, they democratized the financial markets by using social media, enabling ordinary people to disrupt what once belonged to professionals.

The film highlights this populist movement by exploring the personal narratives of those swept up in GameStop’s rise, bringing a touch of humanity to a sphere ruled by cold analytics. The movie flips the script on how we see amateur traders, painting them as a powerful group ready to fight the anarchy of wild wealth—even when it costs them dearly as they struggle to make ends meet. Dumb Money subverts the stereotype that they lack sophistication, portraying them instead as a potent collective that can shake the economic foundation of this country in the digital age. Keith doesn’t hold onto his GameStop stock to make money—he does it out of moral obligation, to motivate others to believe in the power of many small wallets against a few big ones.

Movie Guide table of contents

Cast

  • Paul Dano – Keith Gill
  • America Ferrera – Jenny
  • Seth Rogen – Gabe Plotkin
  • Pete Davidson – Kevin Gill
  • Shailene Woodley – Caroline Gill
  • Myha’la Herrold – Riri
  • Talia Ryder – Harmony Williams
  • Anthony Ramos – Marcos Barcia
  • Vincent D’Onofrio – Steve Cohen
  • Nick Offerman – Ken Griffin
  • Sebastian Stan – Vlad Tenev
  • Kate Burton – Elaine Gill
  • Clancy Brown – Steven Gill
  • Rushi Kota – Baiju Bhatt
  • Larry Owens – Chris
  • Lauren Schuker Blum – Writer
  • Rebecca Angelo – Writer
  • Craig Gillespie – Director

A quick overview of this explanation

Dumb Money tells the story of the GameStop stock trading event that occurred in late 2020 and early 2021. Zeroing in on Keith Gill, known as “Roaring Kitty” online, the movie depicts how this savvy financial analyst rallied a troop of individual traders on r/WallStreetBets to buy into GameStop’s faltering shares, shaking up Wall Street bigwigs who’d bet against the retailer and sparking a massive stock surge that cornered hedge funds into a costly short squeeze.

This article will serve as an explanation of the film’s deeper themes and meaning. Part of that involves evaluating the film in a vacuum so we can explore what it’s saying about the GameStop situation and how its story can expand our understanding of the real-life events. So to start, we’ll dive into some of the movie’s more prominent themes and motifs. We’ll then shift to a comparison between the film and the true story to see what the film got right and where the film failed in recreating the real scenario. We’ll shift to review some of the terms used throughout the movie, and finish by answering some of the more popular questions people have about the movie.

The themes and meaning of Dumb Money

Jennifer stands with her phone in Dumb Money

The populist movement in finance

In a world where the rich often come out on top, “Dumb Money” is a term that captures the collective exasperation with financial systems that seem rigged against the everyday investor. It also mirrors a broader sense of aggravation and disenchantment with financial structures that seem to tilt the scales towards those at the top. The film’s portrayal of the GameStop chronicle spotlights pressing concerns over whether everyone gets a fair shake in the stock market, sparking debate on how to level the playing field.

“Populism” is defined as “a political approach that strives to appeal to ordinary people who feel that their concerns are disregarded by established elite groups.” This speaks volumes about the group of characters we follow in Dumb Money, which aims to illustrate a seismic shift in the landscape of financial power dynamics. By showing how easy it has become to access financial data and trading spaces, the film explores how the common man has infiltrated financial spaces previously occupied only by an elite club. This populist movement isn’t just about sharing the financial playbook—it’s about giving everyday people a shot to step up from the sidelines and play the investment game. This triggers the film’s David vs. Goliath narrative, capturing the collective might of individual retail investors as they band together against the formidable hedge funds. Roaring Kitty leads a bold revolt, throwing down the gauntlet to financial giants and their deep-rooted ways, echoing a wider call for fairness in systems that too often tip the scales toward those at the top.

At the heart of Dumb Money’s digital-age populist movement is how social media and online forums have become crucial in rallying the everyday investor to challenge Wall Street giants. Platforms like Reddit not only serve as a meeting ground but also as a battleground where strategies are formed and executed. Keith, alongside his avid followers, represents a fresh tide of investor activism shaking up traditional market dynamics. They’re building a tight-knit tribe, united by common goals, as they toss out the old belief that Wall Street is just for the suits.

“Dumb Money” vs. “Smart Money”

Dumb Money draws a vivid line between the opulent hedge fund realm and the gritty realities faced by everyday investors who, by banding together with GameStop shares, demand to be heard in an economy that’s all too quick to overlook them. Throughout the film, the struggles of these individual investors become the main focus. These people, coming from all walks of life and dealing with their own financial hurdles, are real folks taking a stand against what feels like an unfair economic playing field. Pouring their money into GameStop, they take a stand, not just chasing cash but pushing back against a financial framework that’s always seemed stacked against them, turning Wall Street into an arena where the public airs its widespread frustrations. The GameStop saga highlights the power of collective action in challenging economic disparities, turning financial markets into arenas for social change.

The phrase “dumb money,” which refers to investments made by non-professionals or retail investors, is contrasted with the term “smart money,” which refers to professional investors who have an inside scoop, an upper hand due to their cushy financial situations. This condescending classification dismisses the significant impact that casual investors have on reflecting broader social issues within the stock market’s ebb and flow—an impact the movie aims to highlight. The stock market, in its complexity, not only trades in shares but also reflects our societal values and the crippling inequalities that exist within them. The actions of the hedge funds, characterized by their short selling of GameStop, are depicted as emblematic of a broader attitude of the financial elite: profiting from or even exacerbating the struggles of smaller businesses and individuals. Meanwhile, the swell of retail investors diving into the market stands as a defiant response to an economic framework that seems to favor deep pockets over the average Joe.

Perception vs. reality in financial markets

Keith and his following on r/WallStreetBets embody a shift in how financial information and strategies are perceived by the public. Roaring Kitty’s interpretation of GameStop’s value, contrary to the prevailing market sentiment, challenges the conventional wisdom of financial analysts and experts. His upbeat stance on GameStop, echoed by his followers across the Internet, carves out a fresh chapter for the company’s stocks by showing us that when people band together in belief, they can truly sway the market. Through its various montages, the film effectively illustrates how social media buzz now holds serious sway in financial circles, rocking stock values as powerfully as any Wall Street analysis.

The term “dumb money” displays the underestimation of retail investors, but it also highlights a shift in how investment strategies are viewed post-GameStop—more as a collective force challenging traditional financial narratives. The GameStop narrative mirrors wider public views on the world of investing, showing us just how people really feel about the cut and thrust of stock trading. Retail traders, fueled by a blend of savvy tactics and raw emotion, remind us that the pulse of the stock market still beats with human hearts, despite being often drowned out by cold data and code.

Important motifs in Dumb Money

Brothers Kevin and Keith Gill sit together outside a track in Dumb Money

Running

One of the most prominent, character-defining motifs of the movie is running. Keith, whenever he needs to clear his head, goes to a track and runs. It’s never explicitly stated if Keith is trying to become faster. But it rather seems that he uses the exercise as a spiritual maneuver, as a way to clear his mind of the myriad stressors in his life.

Often, Keith goes to the track alone. But during this motif’s most pivotal scene, his brother Kevin joins him. And they have this conversation:

Kevin: Hey, do you, do you remember back at Stonehill when they dared me to run that mile naked?

Keith: Yeah, there was a crazy storm that night, you dumb shit.

Kevin: That was dope, man. I’m a legend over there.

Keith: Everybody remembers that. Okay.

Kevin: They do, man. You don’t think people remember your four-minute, three-second mile?

Keith: What is this, a pep talk?

Kevin: Motherfucker, stop hiding. Stop being all meek and shit and running away.

Keith: What, you want me to run through lightning with my dick out? Yeah.

Kevin: Please. Exactly that. Run through lightning with your dick out.

This conversation highlights that Keith doesn’t believe in himself like other people do. Sure, he was a great runner earlier in his life. But as he gets older, he can’t match that speed anymore. So his brother wants to push Keith into realizing that he’s capable of more than he believes. To motivate him, Kevin buys Keith a pair of Nikes. This is significant because when they were kids, Keith beat Kevin in a race to win a pair of Nikes, but Kevin stole them. Now, as Kevin gifts him new Nikes, it’s his way of giving his brother wings to fly at the most precarious moment of his life—just as he’s about to testify before a congressional committee. This is Keith’s chance to run, to soar, to make a statement that reaches the everyday people that feel they’re part of the “dumb money” moniker assigned to them by the wealthy investors that manipulate and take advantage of the stock market.

This explains the scene when Keith and Kevin race. Despite their combative relationship, it’s also a playful and familial one. On this track, Keith and Kevin connect like they used to before their sister’s death. They are ready to run together—to “run through lightning” with their dicks out. They are naked, they are free on the other side of the GameStop craze. Even if they didn’t have the power to change the system, at least they disrupted it—and stayed true to their values while doing it.

How accurate is Dumb Money‘s portrayal of the GameStop phenomenon?

Gabe Plotkin runs across his mansion's patio in Dumb Money

The reality of the GameStop surge

GameStop, once a go-to outlet for gamers, grappled with the rise of digital downloads and online sales that chipped away at its in-store business, sending share prices on a downward slide. Seeing GameStop’s stocks plummet, numerous hedge funds pounced, eager to cash in by betting against the struggling retailer’s future—aka “short selling.”

Short selling involves borrowing a stock and selling it with the expectation that its price will continue to drop. The seller then plans to buy the stock back at a lower price, return the shares to the lender, and pocket the difference. In GameStop’s case, the extent of short selling was extreme, with more shorted shares than the total available for trading, a situation signaling a lack of confidence in the company’s future.

Enter the subreddit r/WallStreetBets, a community known for its bold, speculative trading discussions and often irreverent tone. Users of this forum, including key individuals like Keith Gill, noticed the excessive shorting of GameStop’s stock. Contrary to the prevailing market sentiment, they believed GameStop was undervalued and began buying shares, encouraging others on the platform to do the same. This movement was partly driven by investment strategy and partly by a populist sentiment to counter the dominance of institutional investors.

As retail investors from r/WallStreetBets and other platforms started purchasing GameStop shares en masse, the stock price began to rise sharply. This sudden surge in GameStop’s shares caught short sellers off guard, pushing them into a corner where they had to scramble and buy back stock at soaring prices, sending the value even higher. Media buzz and online chatter cranked up the excitement, pulling even more people into the GameStop buying fever.

The GameStop surge peaked in late January 2021, with the stock reaching an all-time high, far beyond the company’s perceived value based on traditional financial metrics. In a stunning turn of events, the market was sent into disarray as hedge funds took massive hits and early investors reaped hefty profits.

However, the surge was short-lived. After soaring to dizzying heights, the stock’s price took a nosedive—yet it didn’t crash back to square one, showcasing just how shaky and unpredictable these investment flurries can be. Post-GameStop, we’re left to untangle how a swarm of traders and viral tweets can rock the stock market, casting new light on the thin line between collective investment strategies and outright manipulation. As a result, the GameStop saga kicked off serious talks about changing the rules and what stock trading will look like in our tech-driven world.

What Dumb Money gets right

In Dumb Money, the essence of the GameStop story is captured with a blend of factual representation and dramatic embellishment. The movie nails how a band of regular folks, especially the WallStreetBets crowd, fueled GameStop’s stock climb. This aspect of the story is portrayed accurately, reflecting the real-life scenario where a collective of small-scale investors, through their concerted actions, significantly impacted the market.

A central figure in both the film and the actual events is Keith Gill, known as “Roaring Kitty” online. His online presence effectively rallied other traders to the idea that GameStop’s stock was a hidden gem, overlooked by Wall Street. His upbeat take on GameStop not only won over countless investors online but also shines through in the film’s accurate depiction of his influence. The media frenzy that Keith’s influence sparked is also accurately depicted in the film, as the story consumed media outlets for weeks before, during, and after congressional hearings.

Also, the concept of a short squeeze, which was at the heart of the GameStop phenomenon, is well explained in the film. The film captures the surge in GameStop’s value as individual traders banded together, triggering a buying oubburst that cornered hedge funds into purchasing pricier shares to settle their bets. The way the movie shows it, you can see just how a bunch of amateur stock market players buying up GameStop stock sent its value through the roof. This left the big shots who’d bet against it scrambling to salvage their investments at steep costs.

What Dumb Money gets wrong

The film’s depiction of the GameStop craze as a straightforward battle between small retail investors and the financial elite overlooks the nuances of the event. While it’s true that many individual investors saw significant profits, especially those who invested early, a large number also faced losses. These losses were particularly acute for those who bought shares at or near their peak, only to see the stock’s value plummet soon after. While certain characters like Jenny are shown losing money, the perception created by the film in the end is that David defeated Goliath—which is far from the truth.

The GameStop moment is often painted as a major upset for the big players of Wall Street, showcasing it as a triumph where the average Joe investor came out on top. However, this overlooks the fact that many professional investors and hedge funds also profited from the volatility. As the stock soared and then fell, these seasoned investors were able to capitalize on the fluctuations, often at the expense of less experienced retail investors. This dynamic paints a clear picture: the big players, armed with experience and wealth, often outmaneuver novices in the stock market’s intricate dance.

The movie also doesn’t quite hit the mark when it comes to painting a full picture of the economic backdrop that was in play during the whole GameStop ordeal. The stock skyrocketed in a time warped by the pandemic, tossing financial norms out the window and altering how folks played the market game. The influx of stimulus money, the increased accessibility of trading platforms like Robinhood, and the unprecedented market conditions of 2020, where a vast majority of stocks rebounded from a bear market, all played critical roles in setting the stage for the GameStop phenomenon.

Yet, the movie sidesteps the grim fallout for greenhorn traders who, lured by the hype, ended up with their bank balances bruised. The movie cheers on the underdog vibe, but it skips past the grim part where lots of newbies took a financial hit. It’s key to grasp that not everyone walked away from the GameStop craze with their wallets full. For many, this dive into high-stakes trading meant facing tough financial hits.

Understanding the terminology in Dumb Money

Keith Gill holds up a glass of champagne at his computer in Dumb Money

Dumb Money immerses viewers in the world of stock trading, Wall Street, and online investor communities, incorporating various terms and phrases that may be unfamiliar to some. Here’s a breakdown of some key terms used in the movie, as well as some of the major financial players that were involved in the real-life story, explained in layman’s terms:

Bear Market

A bear market is a term used to describe a period in which stock prices are falling, typically by 20% or more from recent highs. Understanding this term helps contextualize the market conditions before the GameStop stock surge.

Bull Market

In contrast to a bear market, a bull market is a period where stock prices are rising or expected to rise. The GameStop phenomenon unfolded as the market shifted gears from bearish to bullish, propelled by economic stimuli and a shift in investor strategies amidst COVID-19.

Citadel LLC

Citadel LLC is a financial institution that came into focus during the GameStop event. During the GameStop excitement, Citadel found itself at the center of a heated discussion due to its close links with Robinhood, raising eyebrows and questions.

Diamond Hands

This term refers to an investor’s resolve to not sell their stock, regardless of its performance. It suggests holding onto a stock firmly, even if its price is soaring or plummeting.

Dumb Money

“Dumb Money,” the film’s title, refers to investments made by non-professionals or retail investors. The movie flips the script on the idea that casual investors don’t have the chops of Wall Street pros, often pegged as making moves that miss the mark. The movie aims to shatter that myth, revealing just how significant these amateur investors’ roles can be in the financial world.

Gay Bears

This term is used within the Reddit community to describe investors who anticipate a drop in stock prices. Sometimes, this phrase crops up in online forums as a slight against investors who are betting on stocks to plummet.

Hedge Fund

A hedge fund gathers money from savvy investors or big-time institutions to invest in a mix of assets, aiming for those sweet returns. Managed by professionals, hedge funds often employ diverse and aggressive strategies to achieve high returns. They usually require a high minimum investment and are known for their ability to hedge bets to balance potential losses.

House Committee on Financial Services

This U.S. congressional committee conducted hearings to investigate the GameStop stock surge. The committee’s hearings were all about piecing together how Robinhood, the little guys investing on their own, and big-time hedge funds each played a part in the GameStop stock moment.

IPO

When a company goes public through an IPO, it’s throwing open the doors for everyday folks to own a piece of the pie. Stepping into the public arena, a company throws open its doors, inviting more individuals to buy in and share in its journey ahead.

Lions

In the context of Dumb Money and online forums, “lions” refer metaphorically to powerful, wealthy individuals like hedge fund managers or billionaires.

Melvin Capital

Melvin Capital grabbed headlines during the GameStop fever, mainly because they bet big against the stock and lost. Melvin Capital took a huge hit when GameStop shares rocketed up, showing just how risky big short bets can be.

Net Worth

Net worth represents the total value of an individual’s assets minus their liabilities (debts, loans, etc.). It includes the total value of everything owned, such as property and stocks, minus all debts. A person’s net worth can be positive or negative, depending on their financial situation.

Occupy Wall Street

Occupy Wall Street, referenced in Dumb Money , was a protest movement against economic inequality and corporate influence on democracy. The movement cast a spotlight on the need for changes in banking practices and called for wiping out student loans to tackle the widening wealth gap.

Retail Investor

A retail investor refers to an individual who buys and sells stocks for personal investment purposes, not as part of a professional organization. These investors often use online platforms for trading and typically deal in smaller volumes due to limited capital. Critiques often point out that these investors might not have a deep dive understanding of stock market intricacies.

Robinhood

Robinhood, well-known among traders, offers a slick app where you can buy and sell stocks for free. Robinhood became a key player in the GameStop story, giving everyday traders an easy way to jump into the action and snap up shares.

r/WallStreetBets

This subreddit became famous for its role in the GameStop surge. Known for its irreverent and speculative discussion on stock trading, r/WallStreetBets was a key platform where individual investors rallied to buy GameStop stocks.

Short Selling

Short selling is a strategy where investors borrow and sell stocks they do not own, betting that the stock price will fall. The goal is to buy the stocks back at a lower price, return them to the lender, and profit from the difference. If the stock price rises, however, the investor faces potential losses.

Short Squeeze

A short squeeze occurs when a heavily shorted stock’s price suddenly increases, forcing short sellers to buy back the stock to cover their losses, which drives the price up even further. At the heart of the GameStop event, an unforeseen surge in its shares dealt a heavy blow to short sellers betting against it.

Stimulus Money

Refers to government-issued financial aid provided to individuals during the COVID-19 pandemic. The extra cash from government aid during the pandemic likely fueled people’s ability to pour money into stocks, adding a twist to GameStop’s story.

Stock Order Sale

This refers to the selling of stock orders by a company (like Robinhood) to another entity (like Citadel Securities) for execution. This process was highlighted in Dumb Money as part of the larger narrative of how stock trades are facilitated and monetized.

Tendies

In online trading communities, “tendies” is slang for profits or gains from stock trading. It’s derived from “chicken tenders,” used in a celebratory context when investors make money from their trades.

To the Moon

This phrase is used to describe a stock’s value skyrocketing. It implies that the stock price is expected to rise significantly and is often accompanied by rocket and moon emojis in online forums.

Questions & answers about Dumb Money

Keith Gill and his wife Caroline hold hands in their kitchen in Dumb Money

Did Keith ever sell his GameStop stock?

At one point in the movie, and in real life, Keith faces a significant decision regarding his GameStop shares. Despite enduring a substantial loss of $30 million over two days due to dramatic fluctuations in the stock’s price, particularly after Robinhood restricted the buying of more shares, he chooses not to sell his stock before the Congressional Hearing. The climax of Dumb Money shows Keith in a moment of contemplation about selling his GameStop shares post-hearing, a decision that would have potentially realized tens of millions of dollars in profits from his initial investments. But as the film wraps up, Keith doubles down on his conviction, not just keeping his GameStop shares but actively increasing his stake.

Following this decision, the movie depicts an increase in GameStop’s stock price, which tripled a week after the Congressional Hearing. Keith’s strategic bet to snag more GameStop stock, as depicted in the film, paid off handsomely when its value soared post-hearing. While Dumb Money leaves it ambiguous whether Keith sold any shares after this point, it implies that he maintained his investment with a strong conviction, echoing the “diamond hands” sentiment popularized on Reddit.

In terms of Keith Gill’s financial outcome, Dumb Money notes that his net worth reached $34 million, and it could have been as high as $50 million when GameStop’s stock price peaked. But the movie doesn’t nail down his financial standing after everything went down, leaving us to guess how his investments played out.

Did Keith stop posting as Roaring Kitty?

After the congressional hearing, Keith ceased posting videos as Roaring Kitty and essentially went offline after a specific point in time. The film shows that his final video on the Roaring Kitty YouTube channel was uploaded on April 16, 2021, and was simply titled “Cheers everyone!” Despite hints at the beginning of this video about future live-streams, he did not follow up with any more content, marking an end to his active online presence as Roaring Kitty.

The abrupt end to Keith’s online saga has left viewers piecing together their own conclusions from the silence that followed his last cheer. One theory presented is that Gill might have stopped posting videos following the sale of his GameStop shares and potentially retired, though this is not explicitly confirmed in the film. Gill’s story essentially became a mystery after the GameStop peak, only leaving us to guess at his reasons and what he did next. It is likely he simply chose a life of solitude away from the limelight after his extreme public exposure.

Is Jennifer Campbell based on a real person?

The character Jennifer Campbell, portrayed by America Ferrera, is not based on a specific real person but is instead a fictionalized representation inspired by various real-life individuals who participated in the GameStop short squeeze. Her story in the film is symbolic of numerous real investors who, influenced by figures like Keith, invested in GameStop during the surge. Her character is designed to reflect the broader demographic of retail investors who, often living paycheck to paycheck, saw the GameStop investment as both an opportunity and a risk.

As Ferrera described in her interview with Vanity Fair, Jennifer is a character without a safety net, representing the reality for many who invested in GameStop: individuals who took significant financial risks without the backup resources often available to more affluent investors. Jennifer’s role in the film brings a tangible reality to the narrative, showing us how high-flying financial gambles deeply affect the lives of ordinary folks.

Travis
Travis
Travis is co-founder of Colossus. He writes about the impact of art on his life and the world around us.
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