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Anyone else been following this? Basically the big players on Wall Street have been shorting the hell out of Gamestop for a while now (basically betting against the company's future by assuming its stock prices will drop). Amateur investors on Reddit got wind of this and organised a mass purchase of these stocks, pushing up their value and creating panic among the shorters, leading to a kind of self-inflating bubble (accelerated further by Elon Musk tweeting about it). The current stock price is $350 USD where it was only $20 a month ago. Meanwhile Gamestop is still a failing business with a doomed future. Some folks are obviously making out like bandits, others will no doubt soon lose a ton when the bubble pops. More here: https://www.bbc.com/news/business-55817918 |
Gamestop stock shenanigans
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Nanocrystal 2,575 posts
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Registered 12 years ago -
Khanivor 44,800 posts
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Registered 20 years agoIt’s a thing of beauty. Pulling back the curtain rather viciously as well -
Your-Mother 8,172 posts
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Registered 5 years agoThe big problem here is that by doing this the Reddit lulz brigade aren’t really sticking it to the man, who won’t really lose much ultimately, but the knock on effect will be on pension funds (which make up the majority of these hedge funds, that traditionally go for low risk options, like, say, shorting an outdated retailer clinging desperately on to life) that'll hurt regular people.
Less robbing the rich to give to the poor and more robbing the poor to give to themselves. -
BreadBinLidHero 10,801 posts
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Registered 12 years agoI'm on the train home and there's a guy making a phone call about this right now. He has five shares, apparently. -
smoothpete 37,743 posts
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Registered 17 years agoI’ve been following it on Reddit for months. I wouldn’t say it’s been organised, they are (by their own admission) a bunch of retards. Some of them have made a loooot of money. A user called DeepFuckingValue started it last year. Last time I checked he’d made over $20M in a year. That was when the price was at about $140 and it’s at $347 right now so he must have doubled his money or more already since I checked 2 days ago. Mental.
I’m interested in how it all works but I’m not a gambler and wouldn’t be in a position to YOLO my life savings on retard meme stocks. I could have made 2 mil by now but then I also could have lost it all.
I just hope they don’t end up fucking over my relative safe shares fund ISA by butt fucking the markets
Edited by smoothpete at 06:09:50 28-01-2021 -
Your-Mother 8,172 posts
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Registered 5 years agoYeah, it’s mostly a bunch of man children looking at the exaggerated success stories and thinking it’s a get rich quick scheme, ignoring the hundredfold number of users who lost a fuckload. But look, it’s the front page of Reddit so time to yeet my family’s healthcare savings to feel like a part of quick memes.
I heard it described crassly/hilariously (delete as appropriate) as “autism pyramid scheme”. -
Malek86 12,331 posts
Seen 28 minutes ago
Registered 14 years agoI really don't think the market can be fucked over this easily.
I mean, the idea that the stock market is self-regulating and tends toward an equilibrium is complete bull, but I doubt the problem will be a bunch of guys with small change who only buy shares in one or two companies.
They are putting a generational fight angle to it, but everyone else is busy not starving. Only redditors are crazy enough to risk their life savings in a gamble like this. So in the end it will never grow to the point where it becomes really dangerous.
Edited by Malek86 at 06:16:12 28-01-2021 -
Your-Mother 8,172 posts
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Registered 5 years agoLong term no, but short term I know a few people who are absolutely terrified about their investments, including retirement, over the last week or so. My 403b has mutual fund options and they had to put out an email asking people not to panic withdraw. -
X201 22,150 posts
Seen 10 hours ago
Registered 16 years agosmoothpete wrote:
The shorting bit is basically:
I’m interested in how it all works but I’m not a gambler and wouldn’t be in a position to YOLO my life savings on retard meme stocks. I could have made 2 mil by now but then I also could have lost it all.
I think that the GameStop share price will fall.
I borrow shares in GameStop from you.
I sell the shares today for £10
I’m right, in a couple of days/weeks the GameStop price falls to £7
I buy the shares back for £7. I give you back your shares and a quid for your trouble and pocket the £2
But, the price goes up and I reach the date I agreed to return your shares. I have to buy the shares back at a higher price than I sold them. I lose money. And I have to give you our agreed fee on top as well.
Edited by X201 at 06:24:07 28-01-2021 -
Nanocrystal 2,575 posts
Seen 7 hours ago
Registered 12 years agosmoothpete wrote:
But who's gonna buy $20M "worth" of shares in fucking Gamestop? Surely their current value is kind of illusory? Owning those shares at that price is no good if you can't cash them in. Are there that many gullible Redditors out there that he could sell them to right now?
A user called DeepFuckingValue started it last year. Last time I checked he’d made over $20M in a year. That was when the price was at about $140 and it’s at $347 right now so he must have doubled his money or more already since I checked 2 days ago. Mental.
EDIT: I guess you'd potentially get dividends, but I can't imagine they'd be much when Gamestop is posting quarterly losses in the tens of millions.
Edited by Nanocrystal at 06:27:04 28-01-2021 -
Rodney 5,029 posts
Seen 15 hours ago
Registered 15 years agoThis is a relatively tiny bubble in the market, why would it impact the market more broadly. I don’t know the details, but isn’t there only one hedge fund that is directly exposed to this? -
Malek86 12,331 posts
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Registered 14 years agoI guess they are afraid that other people might start emulating them.
But that sounds unlikely, because it is expensive and there's no guarantee of success for anyone except the ones who start it. -
Your-Mother 8,172 posts
Seen 1 hour ago
Registered 5 years agoThere’s a ripple effect currently happening, a lot of failing companies are suddenly seeing huge surges (AMC theatres, Blackberry, Bed Bath and Beyond etc). People are jumpy about economic downturn following the pandemic and this is making it substantially worse.
https://thehill.com/policy/finance/536176-sp-erases-2021-gains-dow-drops-over-600-points -
X201 22,150 posts
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Registered 16 years ago -
smoothpete 37,743 posts
Seen 8 hours ago
Registered 17 years agoNanocrystal wrote:
It’s easier to think of this GameStop situation less as shares in a company, but more like Bitcoin. Bitcoin is (mostly) useless so it then becomes a commodity to trade because people want to make money. If people think the price will go up, they’ll buy it to trade later.
smoothpete wrote:
But who's gonna buy $20M "worth" of shares in fucking Gamestop? Surely their current value is kind of illusory? Owning those shares at that price is no good if you can't cash them in. Are there that many gullible Redditors out there that he could sell them to right now?
A user called DeepFuckingValue started it last year. Last time I checked he’d made over $20M in a year. That was when the price was at about $140 and it’s at $347 right now so he must have doubled his money or more already since I checked 2 days ago. Mental.
EDIT: I guess you'd potentially get dividends, but I can't imagine they'd be much when Gamestop is posting quarterly losses in the tens of millions.
That’s the point of GameStop at the moment. You CAN cash in at $347 because some other dickhead(s) thinks it going to go to $1000
It’s not just Reddit. Reddit started the rush but it’s to totally mainstream now and people want to get onboard. That’s why the price goes up! -
smoothpete 37,743 posts
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Registered 17 years agoYour-Mother wrote:
BlackBerry is reddits next darling meme stock, mostly off a deal blackberry have signed with Sony to supply electronics (or something) for Sony’s electric car.
There’s a ripple effect currently happening, a lot of failing companies are suddenly seeing huge surges (AMC theatres, Blackberry, Bed Bath and Beyond etc). People are jumpy about economic downturn following the pandemic and this is making it substantially worse.
https://thehill.com/policy/finance/536176-sp-erases-2021-gains-dow-drops-over-600-points -
X201 22,150 posts
Seen 10 hours ago
Registered 16 years agoYep, a single sale of $20m will go through without a hitch, the problem will be the ones that come after it, if an exodus starts the price will drop like a stone and some will be left wondering where their money went.
And guess who will be happy to see a collapse?
Other market shorters, who will make a killing.
Edited by X201 at 06:44:20 28-01-2021 -
Your-Mother 8,172 posts
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Registered 5 years agoI legit wouldn’t be surprised to see some quick legislation happen to prevent this from carrying on long term. The White House is already eyeing it up. Reddit seems to be seeing it as some sort of Q-esque conspiracy that the man wants to keep them down, rather than the “most of you don’t know what you’re doing, just fucking stop” reality. -
smoothpete 37,743 posts
Seen 8 hours ago
Registered 17 years agoAnyway mostly how people have made real money is buying calls. I’m still trying to get my head around it but basically you buy the right to buy shares at a particular price. If the value of the shares increase then you’re quids in. If it drops then you don’t have to buy them but you lose the money you paid to have the right to buy them -
Your-Mother 8,172 posts
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Registered 5 years agoX201 wrote:
Yeah, ironically this’ll do far more harm to GameStop long term, so the few who think this is some kind of “save GameStop from the tyranny of Wall Street” rebellion are woefully misguided.
Yep, a single sale of $20m will go through without a hitch, the problem will be the ones that come after it, if an exodus starts the price will drop like a stone and some will be left wondering where their money went.
And guess who will be happy to see a collapse?
Other market shorters, who will make a killing. -
X201 22,150 posts
Seen 10 hours ago
Registered 16 years agosmoothpete wrote:
Pork belly futures are where the money is
Anyway mostly how people have made real money is buying calls. I’m still trying to get my head around it but basically you buy the right to buy shares at a particular price. If the value of the shares increase then you’re quids in. If it drops then you don’t have to buy them but you lose the money you paid to have the right to buy them.gif)
Edited by X201 at 06:48:28 28-01-2021 -
smoothpete 37,743 posts
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Registered 17 years agoThe original notion was that GameStop were in a position to turn from failing bricks and mortar to digital / online, which I suppose is possible, but now it’s very little to do with the nature of their business and mostly just an autist Ponzi scheme.
Off the back of all this I set up a couple of trading accounts and turned £400 into £200 👍👍 buying shares in some little blockchain company, a mining firm and a lithium company.
STONKS
https://miro.medium.com/max/910/1*snTXFElFuQLSFDnvZKJ6IA.png -
Frogofdoom 17,973 posts
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Registered 9 years agoNo, frozen orange juice. -
smoothpete 37,743 posts
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Registered 17 years agoJust checked. DeepFuckingValue now at $48M
He made $20M yesterday. Fuck me. -
fontgeeksogood 12,913 posts
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Registered 3 years agoAt what point do we see Jamie Lee Curtis' rack -
Frogofdoom 17,973 posts
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Registered 9 years agoAnyone in our age group that didn't try pausing a vhs video at that bit wasn't really of our generation. -
This isn't that different to any other pump and dump is it? A bit like when shitcoins surge after a launch off the back of Bitcoin.
I think if you were part of the initial GME wave then you're laughing, I could see it going up further today but eventually the bubble is going to pop and leave a savage mess for most. -
fontgeeksogood 12,913 posts
Seen 5 months ago
Registered 3 years agoGl3n wrote:
Well, its different people doing it. And let me tell you, some people are PISSED.
This isn't that different to any other pump and dump is it?
I read a BBC article which used language like 'blame' for the act of, effectively, negating the technically illegal, definitely immoral shorting.
It is quite interesting watching it play out. 2021 has been quite good so far -
fontgeeksogood wrote:
I can't see this ending without regulatory involvement to some extent. Mass manipulation of the market, too many institutions could be affected for them to just sit by.
Gl3n wrote:
Well, its different people doing it. And let me tell you, some people are PISSED.
This isn't that different to any other pump and dump is it?
I read a BBC article which used language like 'blame' for the act of, effectively, negating the technically illegal, definitely immoral shorting.
It is quite interesting watching it play out. 2021 has been quite good so far
The risks of getting involved now are high I'd say. Tempting as it is! -
Again, this is just what happens every day on Wall Street, it's just because outsiders are doing it that it is getting attention, it's costing hedge fund managers a lot of coke money.
I love it, pulling back the curtain of a broken, fucked up chase the lady card trick.
AMC have said this has basically saved them
.gif)
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