Cinema screenings of Dumb Money, a film released last week retelling the story of the GameStop short squeeze, are set to come with a warning from the UK's Financial Conduct Authority (FCA) about the risks of investing.
Designed to illustrate how hype can impact investment choices, the FCA urges viewers to conduct thorough research before succumbing to enticing online opportunities.
Appearing during the premium 'Gold Spot' in cinemas - the final advert before the film starts rolling – the message uses the cinema’s dimming of the lights and its blank screen to provide a voiceover discussing a "once-in-a-lifetime opportunity to make some serious money".
Revealing at the end that this advice originates from an anonymous online forum user, the advert then reinforces the FCA's message: 'Don't Get Played' and provides viewers with online locations where they can receive advice on how to invest safely.
Utilising digital screens in cinema foyers, geo-targeted display ads for cinema goers and online ads in locations frequented by those researching investments, the approach hopes to remind viewers about the dangers of investing when listening to online advice – and maybe potentially bid to stop the chances of a Dumb Money 2 coming to fruition.
Dumb Money tells the story of the GameStop short squeeze which occurred in 2021 and saw several hedge funds and investment companies suffer losses after the failing video game retailer's stock, which they had all shorted heavily, became an online meme-stock for retail investors.
Retail investors convening on social media sites like Reddit helped push the value of GameStop Corp (NYSE:GME) higher and in turn forced shorters to sell or risk taking even bigger losses.
Many retail investors, who at points had made huge sums from investing in the meme-stock, have lost much of the value generated at the time, with the GameStop stock currently trading at close to 70% lower than its 2021 peaks.