🐱 The strange but true reason why GameStop's stock keeps surging - Gamers trolling wallstreet

https://www.weny.com/story/43229386/the-strange-but-true-reason-why-gamestops-stock-keeps-surging

GameStop is expected to lose money this year and next year. Sales growth is sluggish as fewer gamers need to go to stores — or even shop online — when they can download new titles directly from their consoles, PCs, phones or tablets. So why are shares of the video game retailer up more than 275% so far in 2021?
The company can thank a loyal group of investors on Reddit who continue to back the stock even as many others on Wall Street have argued that the shares are overvalued and due for a sharp decline.
The stock was extremely volatile on Monday, and it was halted several times. Shares more than doubled at one point, and finished the day 18% higher.
Posters on the WallStreetBets subreddit have been touting the company aggressively. That appears to have helped fuel a so-called short squeeze in GameStop stock.
A large number of investors have bet against GameStop recently by borrowing shares and selling them with the hopes that they can then repurchase the stock at a lower price and pocket the difference.

That's a risky strategy: If a stock suddenly spikes higher, short sellers may have to rush en masse to buy back shares or risk losing their shirts. The more that a shorted stock goes up, the bigger the losses become if a short seller doesn't buy back (or cover) their position. That creates the squeeze.
Citron Research, an investing firm that often identifies stocks it thinks are overvalued and therefore could be good short-selling candidates, has learned the hard way what can happen when investors squeeze a stock higher.
Citron founder Andrew Left called GameStop a "failing mall-based retailer" in a report earlier this month and then predicted that the stock would plunge to $20 in a video he posted to Twitter on Thursday. At the time, GameStop was trading around $40. The stock surged to $65 by Friday and is now trading around $100.
Left has now given up on shorting GameStop, citing harassment by the stock's backers.
He also tweeted last week that "too many people" were hacking Citron's Twitter feed, causing him to delay the posting of his video, which was originally planned for Wednesday. Left was not immediately available for further comment.

The victory for GameStop's vocal bulls on Reddit shows how dangerous it is for investors to bet against stocks that have a significant cult following. BlackBerry, another favorite among Reddit's WSB followers, has also surged this year.
Some gleeful GameStop investors are even looking to cash in by selling merchandise touting the stock rally.
JonesTrading chief market strategist Mike O'Rourke noted in a report Monday that there is now a commemorative patch listed on Etsythat celebrates the GameStop stock spike. More than 100 have been sold so far.
To be sure, GameStop does have some upside beyond the Reddit love.
Despite its name, the retailer doesn't sell only games. GameStop is also popular with fans of pop culture collectibles, such as Star Wars toys and Funko figurines, which help attract shoppers who aren't hardcore gamers to visit the brick and mortar shops.

GameStop announced earlier this month that same-store sales rose nearly 5% during the 2020 holiday season and that digital sales skyrocketed more than 300%.
Overall sales were still down though, due primarily to temporary store closures as a result of a spike in Covid-19 cases in December as well as supply disruptions due to strong demand for new PS5 and Xbox Series X.consoles from Sony and Microsoft.
GameStop had no comment for this story, but the firm is making some changes as it attempts to become a more digitally-focused retailer.
The company announced earlier this month that Ryan Cohen, founder of online pet supply store Chewy, is now on GameStop's board along with two other former Chewy executives. Cohen's RC Ventures is one of the largest investors in GameStop.
"The three new directors collectively bring deep expertise in e-commerce, online marketing, finance and strategic planning to GameStop," the company said in a press release about the board moves.

Still, some investing experts are worried that the rise in GameStop has gone too far too fast and could be yet another sign of speculative mania in what has suddenly become a frothy overall market.
"Generally speaking, stocks with high short interest have been some of the top performers this year," said analysts at Bespoke Investment Group in a report earlier this month.
The Bespoke report also noted that struggling retailer Bed Bath & Beyond, mall owner Macerich and hard hit movie theater operator AMC are other examples of heavily shorted stocks that are up substantially in 2021.

 

[HumanHive]

For those without an ear on this, the word right now is to hold GME and buy stock in AMC and Bed Bath and Beyond, two other massively shorted companies.

It ain’t over till Friday.

 

[HTTP Error 404]

For those without an ear on this, the word right now is to hold GME and buy stock in AMC and Bed Bath and Beyond, two other massively shorted companies.

It ain’t over till Friday.

Basically this yeah. The entire thing is 4chan/reddit users are holding onto massive amounts of GME stock so they can't short it like they planned. Although I still don't quite understand how they expected to short 260% of the total number of stocks available. Apparently basic economics is for lesser people.

In the past 30 minutes we've seen the stock go from $220 to $380. And the stock market isn't even open yet.

 

[Ruin]

I just installed Robinhood because I fully expect it to be removed from app stores by next week as calls to "oy vey shut it down" intensify.

 

[HTTP Error 404]

I just installed Robinhood because I fully expect it to be removed from app stores by next week as calls to "oy vey shut it down" intensify.

There's no way they don't do SOMETHING in response to this, yeah.

But apparently almost every firm now has $0 cost trading because of RH, so the "damage" has been done: Plebs are now allowed into the marketplace.

 

[Arch Zealot]

Basically this yeah. The entire thing is 4chan/reddit users are holding onto massive amounts of GME stock so they can't short it like they planned. Although I still don't quite understand how they expected to short 260% of the total number of stocks available. Apparently basic economics is for lesser people.

In the past 30 minutes we've seen the stock go from $220 to $380. And the stock market isn't even open yet.

to my understanding its alot like indsider trading exept this is just autists with spite for an inherently currupt system.
i say that as a son of an investment banker

 

[HTTP Error 404]

to my understanding its alot like indsider trading exept this is just autists with spite for an inherently currupt system.
i say that as a son of an investment banker

It's not, tho. That's the thing.

They're using publicly available information in the exact same way the firms are doing. Except the firms and funds have gentlemen's agreements not to fuck each other over. The autists don't.

The autists saw the firms had overextended and that there was a way to make a shitload of money and more importantly, cost the firms a shitload of money, and did it. People are allowed to publicly say "hey look they fucked up buy GME and they'll have to buy it back from us." They're allowed to publicly organize investing.

I have no doubt at all they'll try and make some new law or regulation that says you aren't ALLOWED to do whatever the fuck happened these past few weeks, because the firms are very important people and the plebs shouldn't be allowed to cost them money or make money off of them or what have you. But for right now, what they did was perfectly legal.

 

[HumanHive]

Basically this yeah. The entire thing is 4chan/reddit users are holding onto massive amounts of GME stock so they can't short it like they planned. Although I still don't quite understand how they expected to short 260% of the total number of stocks available. Apparently basic economics is for lesser people.

In the past 30 minutes we've seen the stock go from $220 to $380. And the stock market isn't even open yet.

I don’t know if it was here or somewhere else, but calling shorts “counterfit stock” is very apt and explains the 200%

Again, shorting should be flat out illegal in all forms, but the takeaway from this crisis is going to be “only real investors have a right to buy and sell stock”

 

[IAmNotAlpharius]

It's legitimately crazy to think of my number 1 hobby, video games, having such a real impact on the world.

But it definitely feels good, if anything it sends the message, don't count us white boys out, they thought we were just a bunch of basement dwellers, a bunch of loser nerds doomed to irrelevance but we sure have been giving them hell.

They targeted gamers.

Gamers.

We're a group of people who will sit for hours, days, even weeks on end performing some of the hardest, most mentally demanding tasks. Over, and over, and over all for nothing more than a little digital token saying we did.

We'll punish our selfs doing things others would consider torture, because we think it's fun.

We'll spend most if not all of our free time min maxing the stats of a fictional character all to draw out a single extra point of damage per second.

Many of us have made careers out of doing just these things: slogging through the grind, all day, the same quests over and over, hundreds of times to the point where we know evety little detail such that some have attained such gamer nirvana that they can literally play these games blindfolded.

Do these people have any idea how many controllers have been smashed, systems over heated, disks and carts destroyed 8n frustration? All to latter be referred to as bragging rights?

These people honestly think this is a battle they can win? They take our media? We're already building a new one without them. They take our devs? Gamers aren't shy about throwing their money else where, or even making the games our selves. They think calling us racist, mysoginistic, rape apologists is going to change us? We've been called worse things by prepubescent 10 year olds with a shitty head set. They picked a fight against a group that's already grown desensitized to their strategies and methods. Who enjoy the battle of attrition they've threatened us with. Who take it as a challange when they tell us we no longer matter. Our obsession with proving we can after being told we can't is so deeply ingrained from years of dealing with big brothers/sisters and friends laughing at how pathetic we used to be that proving you people wrong has become a very real need; a honed reflex.

 

[Ruin]

They targeted gamers.

Gamers.

We're a group of people who will sit for hours, days, even weeks on end performing some of the hardest, most mentally demanding tasks. Over, and over, and over all for nothing more than a little digital token saying we did.

We'll punish our selfs doing things others would consider torture, because we think it's fun.

We'll spend most if not all of our free time min maxing the stats of a fictional character all to draw out a single extra point of damage per second.

Many of us have made careers out of doing just these things: slogging through the grind, all day, the same quests over and over, hundreds of times to the point where we know evety little detail such that some have attained such gamer nirvana that they can literally play these games blindfolded.

Do these people have any idea how many controllers have been smashed, systems over heated, disks and carts destroyed 8n frustration? All to latter be referred to as bragging rights?

These people honestly think this is a battle they can win? They take our media? We're already building a new one without them. They take our devs? Gamers aren't shy about throwing their money else where, or even making the games our selves. They think calling us racist, mysoginistic, rape apologists is going to change us? We've been called worse things by prepubescent 10 year olds with a shitty head set. They picked a fight against a group that's already grown desensitized to their strategies and methods. Who enjoy the battle of attrition they've threatened us with. Who take it as a challange when they tell us we no longer matter. Our obsession with proving we can after being told we can't is so deeply ingrained from years of dealing with big brothers/sisters and friends laughing at how pathetic we used to be that proving you people wrong has become a very real need; a honed reflex.

Solid copypasta. 7/10

 

[HOMO FOR LIFE]

I half expect GameStop to come out and declare bankruptcy and stock goes to zero and short goes from -billion to +trillion in one day.

 

[HumanHive]

They targeted gamers.

Gamers.

We're a group of people who will sit for hours, days, even weeks on end performing some of the hardest, most mentally demanding tasks. Over, and over, and over all for nothing more than a little digital token saying we did.

We'll punish our selfs doing things others would consider torture, because we think it's fun.

We'll spend most if not all of our free time min maxing the stats of a fictional character all to draw out a single extra point of damage per second.

Many of us have made careers out of doing just these things: slogging through the grind, all day, the same quests over and over, hundreds of times to the point where we know evety little detail such that some have attained such gamer nirvana that they can literally play these games blindfolded.

Do these people have any idea how many controllers have been smashed, systems over heated, disks and carts destroyed 8n frustration? All to latter be referred to as bragging rights?

These people honestly think this is a battle they can win? They take our media? We're already building a new one without them. They take our devs? Gamers aren't shy about throwing their money else where, or even making the games our selves. They think calling us racist, mysoginistic, rape apologists is going to change us? We've been called worse things by prepubescent 10 year olds with a shitty head set. They picked a fight against a group that's already grown desensitized to their strategies and methods. Who enjoy the battle of attrition they've threatened us with. Who take it as a challange when they tell us we no longer matter. Our obsession with proving we can after being told we can't is so deeply ingrained from years of dealing with big brothers/sisters and friends laughing at how pathetic we used to be that proving you people wrong has become a very real need; a honed reflex.

I swear the confluence of the gamers meme, gamestop, and TDK Joker burning money proves that this is all some cosmic reality show.

 

[Arch Zealot]

It's not, tho. That's the thing.

They're using publicly available information in the exact same way the firms are doing. Except the firms and funds have gentlemen's agreements not to fuck each other over. The autists don't.

The autists saw the firms had overextended and that there was a way to make a shitload of money and more importantly, cost the firms a shitload of money, and did it. People are allowed to publicly say "hey look they fucked up buy GME and they'll have to buy it back from us." They're allowed to publicly organize investing.

I have no doubt at all they'll try and make some new law or regulation that says you aren't ALLOWED to do whatever the fuck happened these past few weeks, because the firms are very important people and the plebs shouldn't be allowed to cost them money or make money off of them or what have you. But for right now, what they did was perfectly legal.

like i said i ment it is like insider trading, as in its created by pure investment. it is people (in this case alot instead of a few)
working together to inflate/deflate a stock through through means that have nothing to do with the real market.
honestly i find this very beutifull and would adore if a good few hegdefonds and banks go up in flames.

but yeah this sadly might lead to new regulations, but hopefully some greedy fucks might get kneccaped first

 

[X Pac Heat]

They targeted gamers.

Gamers.

what a time to be alive

 

[Don't Tread on Me]

like i said i ment it is like insider trading, as in its created by pure investment. it is people (in this case alot instead of a few)
working together to inflate/deflate a stock through through means that have nothing to do with the real market.
honestly i find this very beutifull and would adore if a good few hegdefonds and banks go up in flames.

but yeah this sadly might lead to new regulations, but hopefully some greedy fucks might get kneccaped first

No, it's really not. Like we're trying to explain to you.

Insider trading is not people trying to force stocks to rise or crash. Insider trading is when you are privy to private information, such as the development of a brand new app or product that hasn't been publicly released yet, and you buy stock in the company that is making it before they announce their new product. You get the prices low, then when the stock goes up because of all this new value the company is projected to make, you sell to someone else who wants to buy in and you make a killing. You were only able to make that profit because of insider information that the rest of the public was not privy to. That is what insider trading is.

This is nothing like that. This is, as you said, people trying to force the price to rise, but it wasn't entirely that. GameStop's stock started to rise on its own anyway because they hired Cohen to their board of directors. This isn't all a fake increase, even the CNBC guys are saying the stock will fall to $20 or so instead of back to the original $6 or $7. But none of the buying and selling was based on secret information. And the people who bought and traded were not insiders.

Insider trading is illegal. Do not make this comparison, you will fuel the fire that everyone is trying to start to punish these retards for perfectly legal practices.

 

[WinchesterPremium]

So does this mean you could actually make real money listening to a Reddit sub?

 

[Syaoran Li]

We didn't realize at the time, but by saying "Gamers Rise up", we promote the awaken of the ancient old one, Ga'Mer, child of chaos. He has slumbered for countless of millennia, before life itself started on our world. Now he begins to awake, for we call on him to rise out from his slumber.

If the autistic madness of 2016 gave us meme magic and the ancient Egyptian frog demon god of chaos Kek, then 2021 would probably be the year of Mercury.

The Roman deity Mercury had many offices, one of which being gaming, festivities, and gambling. A lot of the Roman games were preceded by the office of the Aedile, which was both a political office and at times a religious title. Mercury was often invoked in the games and circuses.

The purview of gaming, occultism, and chance also holds true for his Greek, Norse, and Egyptian equivalents: Hermes, Odin, and Thoth.

Ave Mercurius!
Gamers Rise Up!

Okay, I'll take those puzzle pieces, trash cans, and moons now...

I swear the confluence of the gamers meme, gamestop, and TDK Joker burning money proves that this is all some cosmic reality show.

Gamer memes and jokes about Mercury aside, I do find it funny that a bunch of vidya spergs on 4chan and Reddit might crash the stock market by blowing money on investing in a dying video game retail chain. Talk about truth being stranger than fiction.

Forget Clown World, we're playing 4D CarnEvil now!

 

[theshitposter]

Lmao Quote me. They're gonna shut down or block rh/reddit, call it a glitch/overload and trigger the auto sell

 

[HumanHive]

Lmao Quote me. They're gonna shut down or block rh/reddit, call it a glitch/overload and trigger the auto sell

Too many goyim know. Reddit may ban the sub, though.

 

[X Pac Heat]

Lmao Quote me. They're gonna shut down or block rh/reddit, call it a glitch/overload and trigger the auto sell

I just jumped on WSB and some are claiming RH is straight up not letting them buy and cancelling stocks and TDAmeritrade isn't working at all.

Can't let the goym get one over.

 

[Goyslop Muncher]

Repeating error message when trying to setup robinhood account.
SHUT IT DOWN