Board 8 > You guys see what's going on with GameStop's stock?

(+) Yeah! (+)

Wtf is that?

Anyone who bought in low just made a killing on GAMESTOP.

Proof the stock market is dumb as hell

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what on earth

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r/wallstreetbets has been manipulating it for a while to try and bankrupt the people that are shorting it.

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They basically just keep buying it, not caring if they lose money in it, to win in their grudge match against the establishment. Its been memed for like a month now but now like every post on that sub is on GME.

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Rule of thumb I just made -
When a stupid stock is rallying, the dumber the reason, the more likely it is to explode like this
GME being the perfect example
Even when it was $10 I called bullshit, shit company going bankrupt, etc
And look what happened

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picking stocks is for losers
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Reading about how their livestream was canceled, these citron people sound like pompous assholes talking about how much smarter they are than you, so have at it imo.
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This would have never happened before the Casual Revolution.

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Emeraldegg posted...

Reading about how their livestream was canceled, these citron people sound like pompous assholes talking about how much smarter they are than you, so have at it imo.

Citron are a joke and I wish the market would stop reacting to them
Just in the last 3 months-
They shorted Nio
They shorted PLTR

Both are in all time high today

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People on Twitter are all over the place on this.

Obviously people arent dumping yet or itd be cratering, so I have no idea whats going on.

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R/wsb going insane.

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This is called a short squeeze. Moral of the story is, selling stocks short is a very dangerous game.

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Or if you are going to short then you better have some options set to mitigate the fallout :/

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I made 4k today on it and like 5k overall

Hail gamestop.

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The GameStop in Rolling Oaks Mall got shut down last year.

And the one near my High School got shut down - a few months ago as well.

:(

Digital isn't as hip as you think.

Why would anyone buy digital from Gamestop?
What advantages do they have?

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I know a lot of people discovered the stock market during covid, and thats great.

But if people blatantly manipulate the market like this with any consistency there could be serious repercussions/regulations that would almost certainly be unfriendly to your everyday person.

GameStop is not worth what the market says it is worth right now and that is a problem.

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For some perspective, it's a 15x rise from the bottom of $4. TSLA also had a 15x rise if you bought in before 2020. So it's not outrageous or anything. BTC has gone up 40x since 2017.

And it's not market manipulation, it's just a short squeeze that has gone too far since it's become a meme. The bubble will burst eventually and it will land somewhere decently high above $4 and most everyone except the shorters will be happy.

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red13n posted...

I know a lot of people discovered the stock market during covid, and thats great.

But if people blatantly manipulate the market like this with any consistency there could be serious repercussions/regulations that would almost certainly be unfriendly to your everyday person.

GameStop is not worth what the market says it is worth right now and that is a problem.

Hertz was way worse than Gamestop in terms of value vs share price

Hell I'd argue Tesla is arguably worse and agree with foolmo that the rise is "reasonable" in some sense. Like if you believe Gamestop it's fine to price it as a growth stock and throw their current crummy business model out the window

The market will be fine. Maybe some people will be more cautious about short selling now but that's not necessarily a bad thing.

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My god...

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My housemate was throwing a full on tantrum about this screaming that nerds were just angry and making this happen.

My housemate also has no stake in this and it doesn't effect him in any way, so that reaction tracks for him.

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Lmao it's in free fall right now. I guess reddit is cashing out.

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Now it's unreasonable

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We're all millionaires now

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If only I'd bought the 1/29 calls instead of the 1/22 calls I would actually be one <_<

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Menji posted...

We're all millionaires now

Now its time to cash out and dump it all into Bitcoin!

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redrocket posted...

Now its time to cash out and dump it all into Bitcoin!

Kudos to anyone who actually does this

As someone who has no GME, I now understand what non-BTC people felt like in 2017. (Big difference is that BTC was only perceived as a meme bubble, while GME actually is one.)

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i am now the proud owner of half a stock of GME mainly cuz i would have wasted the money anyway so it might as well be on this

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BTC dropped to 20% of its peak within a year

GME regressing to $40 per share seems about right

P much the same thing.

Just gotta prepare for the second coming of GME in 2023 after it drops to $40.

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Stocks are fuckin dumb so lol at all of this

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the amount of hedgefunds crying is amazing to see as a result.


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who knew that gamespot was the new bitcoin

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game STOP oh my godd im so embarrassed

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gamers rise up

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Fuck gamers
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this whole situation is hilarious

fuck the hedge fund managers that are bailing each other out - it would be poetry if they lose billions because a group of redditors supported a videogame brick and mortar store

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the real gamergate

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Suprak the Stud posted...

r/wallstreetbets has been manipulating it for a while to try and bankrupt the people that are shorting it.

They basically just keep buying it, not caring if they lose money in it

as someone who knows nothing about this, can someone explain what shorting is and how <whoever is losing money> is losing money or getting bankrupt when the stock kept getting higher and higher?


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To be clear wsb has at least a billion invested atm

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Elon Musk tweeted about this this afternoon. Tomorrow, there is a significant chance we see multiple hedge funds go bankrupt.

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GTM posted...

as someone who knows nothing about this, can someone explain what shorting is and how <whoever is losing money> is losing money or getting bankrupt when the stock kept getting higher and higher?

Short selling is a way to bet on a security losing value. The basic idea is:

1. Borrow shares of a company from someone
2. Sell those shares
3. Buy the shares back later at a lower price
4. Return the shares

So if you sell those shares for $100, then buy them back later at $60, you made $40, minus the interest.

edit: to answer the second part of the question, if the stock goes up instead, you have to buy it back at a higher price and you lose money.

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In finance, being short in an asset means investing in such a way that the investor will profit if the value of the asset falls. This is the opposite of a more conventional "long" position, where the investor will profit if the value of the asset rises. There are a number of ways of achieving a short position

In basic terms: some big hedge fund companies have "short sold" GameStop, meaning they make money if the value of GameStop decreases. GameStop's value is increasing, so they are losing money on that "short sell."

It's more complicated than that in regards to how they short sold, but that's the tl;dr

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red sox 777 posted...

Elon Musk tweeted about this this afternoon. Tomorrow, there is a significant chance we see multiple hedge funds go bankrupt.

Nice.

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Unfortunately at least one hedge fund, Melvin Capital, which seemed to invest quite heavily in shorts, just got a $2.75 billion bailout from other investment firms. Why would they do that? Who knows. But I am enjoying watching David beat up on Goliath here. I just wish to God I had bought some GME stocks. I just never do stock trading though (outside of my 401k), but goodness, this sure makes me want to.

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guffguy89 posted...

Why would they do that? Who knows.

Oh come on, it's obvious why they did it.

It's why I want this stock to skyrocket even though I have no skin in the game. Billionaires bailing out billionaires who bet on a company tanking and then using their influence to tank it deserve to get fucked.

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GTM posted...

as someone who knows nothing about this, can someone explain what shorting is and how is losing money or getting bankrupt when the stock kept getting higher and higher?

The key is this:

When you buy 1 stock at $100 and it goes to $0, you've lost $100

But when you short sell 1 stock at $100 and it rises up to $1000000, then you've lost $999900

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foolm0r0n posted...

The key is this:

When you buy 1 stock at $100 and it goes to $0, you've lost $100

Buy when you short sell 1 stock at $100 and it rises up to $100000, then you've lost $999900

Yeah this is really the heart of it. People who short stocks are vultures profiting on the failure of businesses (sorry to anyone here who shorts). Large hedge funds bet on gamestop stock being overvalued and tried to make money on the business going under, and wsb said "fuck you, we are driving up the price so we get rich and you lose money"

Also now that you kind of know whats happening you can rewatch Casino Royale and understand the plot!

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I really wish I knew how to make memes, so that I could do a Seinfeld parody for this:

"I would like to BUY SOME STOCKS."
"For what reason?"
"Spite."

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Shorts are fine. You can bet on stocks going up and you can bet on them going down. There's nothing inherently different about the positive and negative numbers. There's manipulation and corrupt incentives both ways. There's the life of a business caught in the crossfire but they knew the game they were entering when they went public.


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Yesmar_ posted...

I really wish I knew how to make memes, so that I could do a Seinfeld parody for this:

"I would like to BUY SOME STOCKS."
"For what reason?"
"Spite."

you uh, find the picture. and then put text over it using ms paint
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