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

(+) Yeah! (+)

I don't know if it's a meme or not (WSB is fucking weird man) but some people are thinking GME is going to reach $5000

Pretty tempting to jump in and just buy a few at $300 if it's going to get anywhere close to that high but I've never touched stocks so it's way too much of a risk for me.

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skullbone posted...

I don't know if it's a meme or not (WSB is fucking weird man) but some people are thinking GME is going to reach $5000

Pretty tempting to jump in and just buy a few at $300 if it's going to get anywhere close to that high but I've never touched stocks so it's way too much of a risk for me.

i would leave it alone in your case, its not going to 5000

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Do not buy at this point unless you're just writing it off as an entertainment expense

People who got in early are going to make a lot of money. People who buy at the end are gonna be fucked.

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i wouldnt touch gamestonk

now whatever neon says, id blindly trust.

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LordoftheMorons posted...

https://twitter.com/jbarro/status/1354575381802708993

I follow Josh on Twitter, and it was pretty funny to see him getting ratioed to hell and back for his tweets on this.

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ChaosTonyV4 posted...

I follow Josh on Twitter, and it was pretty funny to see him getting ratioed to hell and back for his tweets on this.

He's right though!

I mean I guess we'll see how people feel when they end up losing big

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Boy capitalism sure is stupid.

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LordoftheMorons posted...

Do not buy at this point unless you're just writing it off as an entertainment expense

People who got in early are going to make a lot of money. People who buy at the end are gonna be fucked.

This is far from the end. You can still make money now but it's not gonna be the ABSURD 10x-50x that some people got.

But if I told you there was a really easy way to likely double $100, you'd be all over it wouldn't you?

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Not everyone is a gambler like you

edit: I'm not the first one to say this, but the bottom could drop out any minute. Sure, it's not likely to happen at this moment, but when it does, GME is likely to absolutely crater.

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LordoftheMorons posted...

I mean I guess we'll see how people feel when they end up losing big

How big?

Some people are going deep on this but most have like $1k in it at most. What's the big deal when they lose it? Do you really think you're superior to everyone because you're too scared to risk a few $ on something awesome like this?

This is literally why this rally exists. It's a rejection of your brand of elitism. Stock traders think the public is too dumb to understand that if you buy something high then it might go low and you'll lose money. Like they are the only ones who understand this extremely simple concept and thus they should make the rules for the world. The GME buyers know what they are doing and are okay with the consequences. It's the shorters with 20+ years experience who have absolutely no clue what they are doing in this case.

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The thing that will really slap the GME buyers across the face though: short term capital gains

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lmao you wanna talk about elitism. half the people in the country would lose everything if they lost 1k. yeah what's the big deal

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LordoftheMorons posted...

He's right though!

I mean I guess we'll see how people feel when they end up losing big

No one is forcing anyone to buy in and people have been very transparent about their thesis for this stock. All investments involve risk. By and large, GME shareholders have done very well and short sellers, mainly hedge funds, have lost something like $30 billion.

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Bartzyx posted...

lmao you wanna talk about elitism. half the country would lose everything if they lost 1k. yeah what's the big deal

Then those people put in like $100 or whatever they can afford. This isn't a difficult concept. You're not as smart as you think you are.

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You're not as smart as you think you are if you don't think there are a lot of people who are putting money they can't afford to lose into this. There are people on this very board who have already done it.

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red sox 777 posted...

No one is forcing anyone to buy in and people have been very transparent about their thesis for this stock. All investments involve risk. By and large, GME shareholders have done very well and short sellers, mainly hedge funds, have lost something like $30 billion.

Nobody's done well until they've cashed out

Presumably everybody here acknowledges that a share of GME is not actually worth $350. It'll equilibrate around $20 or whatever it was before. As people sell off their stocks, the price will go way down, and any money that some people are making is going to be at the expense of others who bought/sold at worse times (and nowhere near all of those losses will be from the hedge funds).

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LordoftheMorons posted...

Nobody's done well until they've cashed out

Presumably everybody here acknowledges that a share of GME is not actually worth $350. It'll equilibrate around $20 or whatever it was before. As people sell off their stocks, the price will go way down, and any money that some people are making is going to be at the expense of others who bought/sold at worse times (and nowhere near all of those losses will be from the hedge funds).

The hedge funds are short around 140% of the float. They have to buy back those shares. That's WHY the stock is up so much.

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And yes, some people are definitely playing with disposable money (hence my "unless you're just writing it off as an entertainment expense" comment earlier). It is pretty clear that some people are treating it as a good investment opportunity, though, and a big fraction of them are going to get burned.

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red sox 777 posted...

The hedge funds are short around 140% of the float. They have to buy back those shares. That's WHY the stock is up so much.

They're not the only ones buying shares (so is everyone getting in on this get rich quick scheme). Feel free to correct me if I'm wrong, but I'd guess that hedge funds are buying well fewer than 50% of the GME shares being traded this week.

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foolm0r0n posted...

The thing that will really slap the GME buyers across the face though: short term capital gains

I hope there are people who held GME for over a year and didn't meme this to make out like the billionaire class.

well, not quite, they'll still pay 12% taxes instead of 0

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LordoftheMorons posted...

And yes, some people are definitely playing with disposable money (hence my "unless you're just writing it off as an entertainment expense" comment earlier). It is pretty clear that some people are treating it as a good investment opportunity, though, and a big fraction of them are going to get burned.

I think you are just wrong on this. It has been an amazing investment opportunity for nearly everyone but the shorts. No one needs to be buying at $350 - other than the shorts.

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The people that bought into this arent trying to make money. Well, I mean, its a plus but wsb is very clear that it isnt their primary objective to earn money.

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Suprak the Stud posted...

The people that bought into this arent trying to make money. Well, I mean, its a plus but wsb is very clear that it isnt their primary objective to earn money.

it's mine and i lurk wsb all the time bro

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make money while screwing over the wall street douchebag 1%ers I literally see no reason why anyone should be talking down about this

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Suprak the Stud posted...

The people that bought into this arent trying to make money. Well, I mean, its a plus but wsb is very clear that it isnt their primary objective to earn money.

That makes even less sense! Why would you take on a financial risk without expecting a profit?

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LordoftheMorons posted...

That makes even less sense! Why would you take on a financial risk without expecting a profit?

"why would u buy a movie bro ur not gonna make money off of a movie"
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NFUN posted...

"why would u buy a movie bro ur not gonna make money off of a movie"

You get a benefit from that: watching the movie

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LordoftheMorons posted...

You get a benefit from that: watching the movie

And you get a benefit from this: watching hedge fund managers squirm and seeing the media freak out
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NFUN posted...

And you get a benefit from this: watching hedge fund managers squirm and seeing the media freak out

Okay, brb, off to make what I'm sure is to be very successful business suspending a wall street trader voodoo doll over a fire pit and allowing people to drop hundred dollar bills into the fire to make the flames go higher

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LordoftheMorons posted...

They're not the only ones buying shares

Because it's still going up. When it crashes then only shorters will be buying, because why the hell would you buy a crashing stock unless you were legally forced to?

The other thing you're missing is that even if 0 of us poor suckers bought the stock, it would still be going up as shorters are forced to close their positions. THEY are the ones driving the stock up, from the very beginning. Everyone is just along for the ride and can hop off at any time.

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I thought about buying GME on Thursday or Friday and thought "nah, this $70 is a bubble and I only started playing with stocks this week, I'm not going to risk it"

And I wish I did, what the hell.

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LordoftheMorons posted...

Okay, brb, off to make what I'm sure is to be very successful business suspending a wall street trader voodoo doll over a fire pit and allowing people to drop hundred dollar bills into the fire to make the flames go higher

this is impressively missing the point
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Not uncommon from lotm tbh

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I at least got in on AMC because of this topic so thanks

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LordoftheMorons posted...

Nobody's done well until they've cashed out

Presumably everybody here acknowledges that a share of GME is not actually worth $350. It'll equilibrate around $20 or whatever it was before. As people sell off their stocks, the price will go way down, and any money that some people are making is going to be at the expense of others who bought/sold at worse times (and nowhere near all of those losses will be from the hedge funds).

This is like a transcript of the Citron video last week that explains why GME is a $20 stock and it's definitely going down and everyone is going to lose money, but never acknowledges the short interest that is causing this

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LotM what are you doing and why

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LotM is the wall street hedge fund manager who never got the gig

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foolm0r0n posted...

Because it's still going up. When it crashes then only shorters will be buying, because why the hell would you buy a crashing stock unless you were legally forced to?

The other thing you're missing is that even if 0 of us poor suckers bought the stock, it would still be going up as shorters are forced to close their positions. THEY are the ones driving the stock up, from the very beginning. Everyone is just along for the ride and can hop off at any time.

Anybody buying the stock makes it go up. Everybody getting on the hype train over the past few days has been making it go up (and are the entire reason it's been going up).

Some people that sell will be the first to sell, and they will make a ton of money. But everyone needs to sell to realize any potential gains, and not all of them can be early sellers. Some of them will be late sellers, thereby selling for less and getting screwed unless they bought correspondingly early.

NFUN posted...

this is impressively missing the point

What I'm saying is that obviously people jumping onto this want to make money. Yes, they are also finding entertainment value in hedge funds losing money, but the vast majority of them would not be putting in nearly as much if that was all they got out of it.

CoolCly posted...

This is like a transcript of the Citron video last week that explains why GME is a $20 stock and it's definitely going down and everyone is going to lose money, but never acknowledges the short interest that is causing this

Maybe if it wasn't being shorted it would be a $25 or a $30 stock or something. It's obviously not fundamentally a $350 stock.

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LordoftheMorons posted...

Some of them will be late sellers, thereby selling for less and getting screwed unless they bought correspondingly early.

Now add in the fact that the stock is 150% shorted and all of those positions will have to be covered before the price truly starts to crash (which will then generate more short interest which will buoy the price again, etc). Everyone who puts a stop loss at the price they bought in will be able to sell and get out before that. Literally the only ones who NEED to lose in this scenario are the shorters. There's also the crazies who will hold far beyond the crash, but they don't give a shit about losing the money.

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To put it simply: Stocks are a zero sum game, so investors can typically only win by hurting other investors. In this case, the ones getting hurt are heavily weighted towards the shorters. Every $ a shorter loses is one that an investor can take as profit without hurting other investors.

So investors only start losing after all short $s are extracted. And that's a lot of fucking $s.

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Oh yeah someone do me a favor find out why LotM has me blocked I forgot to find out wtf after I couldnt see that politics topic they made

PerfectChaosZ posted...

Oh yeah someone do me a favor find out why LotM has me blocked I forgot to find out wtf after I couldnt see that politics topic they made

I don't?

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LordoftheMorons posted...

Nobody's done well until they've cashed out

Presumably everybody here acknowledges that a share of GME is not actually worth $350. It'll equilibrate around $20 or whatever it was before. As people sell off their stocks, the price will go way down, and any money that some people are making is going to be at the expense of others who bought/sold at worse times (and nowhere near all of those losses will be from the hedge funds).

How many publicly traded companies can you honestly say have shares valued what the company is worth?

Its not actually worth that is a bad argument when stocks are just imaginary numbers.

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foolm0r0n posted...

To put it simply: Stocks are a zero sum game, so investors can typically only win by hurting other investors. In this case, the ones getting hurt are heavily weighted towards the shorters. Every $ a shorter loses is one that an investor can take as profit without hurting other investors.

So investors only start losing after all short $s are extracted. And that's a lot of fucking $s.

I think you're vastly overestimating the fraction of shares being bought by hedge funds after how much this exploded.

I'm not contesting that there will be some net transfer from hedge funds to people on the wsb train. There's also going to be a huge transfer from wsb people who bought/sold late to people who bought/sold early.

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ChaosTonyV4 posted...

How many publicly traded companies can you honestly say have shares valued what the company is worth?

Its not actually worth that is a bad argument when stocks are just imaginary numbers.

It's the market's current educated guess about what the stock is worth. They're not typically going to be off by a factor of 15-20 with massive fluctuations based on no fundamental changes to the company.

But for the point I was making there you can replace "worth" with "long term equilibrium price." What I'm saying is that people who don't get out before it crashes are essentially guaranteed to lose money.

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LordoftheMorons posted...

There's also going to be a huge transfer from wsb people who bought/sold late to people who bought/sold early.

Why though? If everyone puts a stop loss at the price they bought in on, who loses other than the shorters?

Those with weak hands will lose, sure, like any stock. But there's so much safe money to grab here.

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If you bought in last week at 20 then you can stay in the game for a very long time, well after the shorters are liquidated and still be fine.

But if you bought in today at 350, then you might have to exit earlier. You'll still be fine though.

That's all it is. The later you buy the earlier you have to exit. It's just way safer now that the shorters are keeping the price up, so you prob won't hit your stop loss, even if you bought late.

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