Send This to Anyone Who Wants to Know WTF Is Up With GameStop Stock
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What is going on is that GameStop, a company that sells physical copies of video games next to Auntie Anne’s pretzel shops in dying malls, is the most highly traded asset in the United States, a “meme stock,” and currently the primary front in a micro class war. GameStop’s stock price jumped from $4 last summer to $20 at the end of 2020, to $40 two weeks ago. It was worth $100-ish at times on Monday and Tuesday, and as I write this it is worth close to $300. Essentially, many normal-ish people have made a huge bet against gigantic financial institutions and are currently winning. In practice this means we are seeing one of the largest wealth transfers from the financial ruling class to the middle and middle-upper classes in recent memory, so it is, understandably, the only thing anyone is talking about.
How did this happen? A bunch of Redditors in the r/WallStreetBets subreddit, led by a person going by “DeepFuckingValue,” analyzed GameStop stock and concluded that its price was undervalued. They then, over the course of months, identified a weakness in the strategies of several giant hedge funds that had bet many millions of dollars that GameStop would fail.
These Redditors purchased huge numbers of GameStop stock at low prices (and then kept buying more as the prices rose), held it, and are currently forcing something known as a “short squeeze” that is driving the price up and is emptying these hedge funds in the process. These Redditors are diamond-handing (holding) their stocks, imploring each other to not be a weak-minded stock seller (paper hands) and are waiting for their messiah Ryan Cohen—the CEO of Chewy.com who invested millions in GameStop last year—to hitch them to his rocket and take them to the moon/sun/Mars (become very rich).
“Never argue with a fool, onlookers may not be able to tell the difference.”
January 27, 2021 at 10:05 PM #398677
January 28, 2021 at 3:15 AM #398852snotParticipant
- Total Posts: 1,179
however sound DeepFuckingValue’s original analysis of Gamestop may have been, the stock is now in a huge bubble. And a lot of the investors in the hedge funds being squeezed may be pensions or the like. This is not to argue that the Redditors shouldn’t do what they’re doing; what I mean to argue is that the whole system is totally f—ed. It should never have been possible for either Wall St. or the Redditors to create these bubbles in the first place; and the fall-out always is that the Wall St. execs and other 1%-er’s will get bailed out while those who can least afford to lose get hurt.
Destruction is easy; creation is hard, but more interesting.
January 28, 2021 at 3:51 AM #398859closeupreadyParticipant
- Total Posts: 2,230
I am not a lawyer, but the point is, SOMEONE handed the pension money to a hedge fund in order to manage and grow it. Those who did so knew the risk of loss in giving away management of those funds to a hedge fund, and so yes, it’s a bit sad, but also there is a calculus here:
For whom do we feel more sad – Pension funds whose funds were mismanaged? Or for GameStop employees and customers whose livelihoods and entertainment choices were put at risk by selfish short-sellers?
The opinions and personal views expressed herein are solely those of the author, and should never be taken seriously.
January 28, 2021 at 7:06 AM #398878GryneosParticipant
- Total Posts: 1,473
with clips from the various market “reporters” crying about how unfair it is and even suggesting that there be regulations created to stop everyone but them:
Who are you? | What do you want? | Why are you here? | Where are you going? | Do you have anything worth living for? | Who do you serve and who do you trust?
January 28, 2021 at 1:30 PM #398915incognitoParticipant
- Total Posts: 4,574
watching CNBC, all their arrogant hedge fund managers and financial “gurus” melting down. 😭
And they have the nerve to suggest that what the Redditors are doing is illegal – after the pompous hedge fund owners sold short, stocks they didn’t even own (don’t even exist). I say, look in the mirror, assholes. What you see is KARMA.
Not only that, CNBC, BLOOMBERG, etc, manipulate the market every single day just by dumping negative comments on a particular stock or heaping endless praise on a particulate stock. Now, they’ve been outsmarted. I fucking LOVE IT.
I really enjoyed these two paragraphs from the article:
“It is clear that there is a sect of WallStreetBets who either previously or currently work in the financial sector who are fed up with increasing inequality, are tired of watching giant corporations repeatedly fuck over ordinary people, and are explaining how it all works to huge groups of people. What they are doing is risky, but it’s not “very stupid.” We have been told for decades that the banks and the people who work at Goldman Sachs and Fidelity and hedge funds none of us have ever heard of are smarter than us, that they deserve to be rich, that they should be the ones who pull the levers on the economy, that they should decide which companies are good and which are bad, that they should be the ones who help make financial regulations. All along the way they have gotten fabulously wealthy and we have been stuck with stagnant wages, record consumer debt, and financial advice that tells us to wait until we are old to retire.
WallStreetBets says this is a new paradigm where the masses have the power and hedge funds are scared. A top post on the subreddit this morning was called this: “FOR ALL THE BIG FUCKING HEDGE FUNDS MONITORING US, THIS IS A MESSAGE FROM US TO YOU, WE FUCKING OWN YOU NOW, FUCK. YOU.”
To THAT, I say – hell yes!
January 28, 2021 at 7:11 PM #398969
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