Fuck GameStop, but I think it's hilarious that a bunch of internet autists are causing a hedge fund trying to short the stock to lose a lot of money. And I'm fascinated by a presumably left-wing writer at Kotaku literally siding with a hedge fund over said internet autists.
Disclosure: one of my index funds has 0.01% of its holdings in GameStop.
Yeah, once you stop taking people for their word and instead start focusing on their actions and look from the right perspective everything falls pretty much exactly into line.
I was wondering what the hell was going on with that, since by every indication it's still a pretty shit stock. I was looking at buying a put option on it, but the options prices are totally screwed up too. Didn't research after that and got distracted over weekend.
I think it's funny myself, I don't care if people want to screw around with stock prices. It's not like that isn't what the whole market has become anymore.
It's going to be pretty interesting watching gamestop now and to see who wins out. If people keep buying and driving the price up before the shorts get called. Or, if the stock collapses in a mad panic and the hedge fund makes a fortune.
I don't think people realize how stupid this idea is. The first few people to buy stocks, maybe, because they're practically betting that some mouth breathers will follow their lead. But after that, what's gonna happen is that it'll spike when everyone else buys, but the justification for buying is complete malarkey, because if the big investors see the price spike, THEY CAN KEEP HOLDING THE POSITION. What's essentially happening is that dipshits are buying expecting everyone who shorted to buy back the stock all at the same time, but all that's happening is that people who think they're big braining stocks are inflating the stock price by buying it in the first place, and they're gonna lose their shit when people realize what a stupid idea that is, and then the big investors are gonna cover their position when everyone else sells their stock.
TL;DR: Internet mob thinks people shorting a failing company is stupid, so they buy it, artificially increase stock price, and will eventually run the stock price into the ground after the meme is dead and people sell the overvalued stock, causing the big investors who aren't stupid to buy back the stock at an even lower price than expected in the long run.
You're not understanding my argument. Right now the stock price propped up by people constantly buying it. If people stop buying it, the price will stagnate at where it was i.e. drop because it's overvalued because of speculation. If the price starts to drop, people will most likely panic sell in order to make sure they don't lose money, in which case the selling will accelerate the price drop, causing the stock to become undervalued, and THEN big investors will drop all at once. The problem isn't that investors will sell all at once, it's that the stock buyers think they can beat out the big investors by forcing them to buy at an artificial high, but you can hold a short position indefinitely, and the buyers have to keep buying in order to prop up the price, whereas there is no opportunity cost for the big investors to hold their short position until this idiotic charade ends.
Yeah, I used stagnate incorrectly there. I want to specify that what will most likely happen is that after people realize that they can’t get any more people to buy the stock (because the long term price is dubious), people will start to sell over time. It might even be true that some people will short the stock AGAIN because it’s so high. Whatever the case is for management at GameStop, nothing it’s been doing could warrant a tripling in common stock value over 10 days. In the end the only people making profit are the shorters who held or started now and the people who bought and sold the stock already.
It depends on when the short gets called for the stock. If the prices remain artificially high until then the hedge fund is going to get fucked. But, I doubt Gamestop is going to have that much more momentum after the initial surge. The real investors who jumped in have already jumped out and made their profits.
Short Selling is when you borrow someone else's stock to sell it for the short run. You are betting the stock will drop in price. When the pre-determined period the short sell is for ends, you must buy back in. If the stock price dropped, you buy back in at a lower price and keep the difference, thus turning a profit. If it goes up, you buy back in at the higher price and have to pay the difference.
Several Hedge Funds saw that Gamestop is looking to collapse soon, and decided to make a profit by a massive shot sell which would drop the price of the stock. Word got out and internet investors bought in and caused the stock price to triple. At the moment it looks like the Hedge Fund managers stand to loose around 91 billion dollars from their shorting.
Gamestop will likely collapse anyway hurting the short term buyers, but it will take long enough that the Hedge Fund managers will still take a bath and several will likely need a bailout to avoid going out of business.
Fuck GameStop, but I think it's hilarious that a bunch of internet autists are causing a hedge fund trying to short the stock to lose a lot of money. And I'm fascinated by a presumably left-wing writer at Kotaku literally siding with a hedge fund over said internet autists.
Disclosure: one of my index funds has 0.01% of its holdings in GameStop.
It can be pretty confusing.
It gets less confusing by the day tbh.
Yeah, once you stop taking people for their word and instead start focusing on their actions and look from the right perspective everything falls pretty much exactly into line.
I'm okay with this.
This is the sort of gimmicky shit we used to do in Goonswarm. If you've got the money to fuck with the talking heads, do it.
I was wondering what the hell was going on with that, since by every indication it's still a pretty shit stock. I was looking at buying a put option on it, but the options prices are totally screwed up too. Didn't research after that and got distracted over weekend.
I think it's funny myself, I don't care if people want to screw around with stock prices. It's not like that isn't what the whole market has become anymore.
A president was meme'd into existence. The stock market bows to memes.
KEK LIVES
It's going to be pretty interesting watching gamestop now and to see who wins out. If people keep buying and driving the price up before the shorts get called. Or, if the stock collapses in a mad panic and the hedge fund makes a fortune.
XIV 2.0. But the party's fun to watch while it lasts.
Pretty good article, not gonna lie. And anything that makes wall street cunts seethe is okay in my book.
I don't think people realize how stupid this idea is. The first few people to buy stocks, maybe, because they're practically betting that some mouth breathers will follow their lead. But after that, what's gonna happen is that it'll spike when everyone else buys, but the justification for buying is complete malarkey, because if the big investors see the price spike, THEY CAN KEEP HOLDING THE POSITION. What's essentially happening is that dipshits are buying expecting everyone who shorted to buy back the stock all at the same time, but all that's happening is that people who think they're big braining stocks are inflating the stock price by buying it in the first place, and they're gonna lose their shit when people realize what a stupid idea that is, and then the big investors are gonna cover their position when everyone else sells their stock. TL;DR: Internet mob thinks people shorting a failing company is stupid, so they buy it, artificially increase stock price, and will eventually run the stock price into the ground after the meme is dead and people sell the overvalued stock, causing the big investors who aren't stupid to buy back the stock at an even lower price than expected in the long run.
You're not understanding my argument. Right now the stock price propped up by people constantly buying it. If people stop buying it, the price will stagnate at where it was i.e. drop because it's overvalued because of speculation. If the price starts to drop, people will most likely panic sell in order to make sure they don't lose money, in which case the selling will accelerate the price drop, causing the stock to become undervalued, and THEN big investors will drop all at once. The problem isn't that investors will sell all at once, it's that the stock buyers think they can beat out the big investors by forcing them to buy at an artificial high, but you can hold a short position indefinitely, and the buyers have to keep buying in order to prop up the price, whereas there is no opportunity cost for the big investors to hold their short position until this idiotic charade ends.
Yeah, I used stagnate incorrectly there. I want to specify that what will most likely happen is that after people realize that they can’t get any more people to buy the stock (because the long term price is dubious), people will start to sell over time. It might even be true that some people will short the stock AGAIN because it’s so high. Whatever the case is for management at GameStop, nothing it’s been doing could warrant a tripling in common stock value over 10 days. In the end the only people making profit are the shorters who held or started now and the people who bought and sold the stock already.
Elon tweeted and pushed the end of day $148 to past $200 after hours today ?
I don't think they're escaping those short bets.
It depends on when the short gets called for the stock. If the prices remain artificially high until then the hedge fund is going to get fucked. But, I doubt Gamestop is going to have that much more momentum after the initial surge. The real investors who jumped in have already jumped out and made their profits.
I don't understand any of this.
Short Selling is when you borrow someone else's stock to sell it for the short run. You are betting the stock will drop in price. When the pre-determined period the short sell is for ends, you must buy back in. If the stock price dropped, you buy back in at a lower price and keep the difference, thus turning a profit. If it goes up, you buy back in at the higher price and have to pay the difference.
Several Hedge Funds saw that Gamestop is looking to collapse soon, and decided to make a profit by a massive shot sell which would drop the price of the stock. Word got out and internet investors bought in and caused the stock price to triple. At the moment it looks like the Hedge Fund managers stand to loose around 91 billion dollars from their shorting.
Gamestop will likely collapse anyway hurting the short term buyers, but it will take long enough that the Hedge Fund managers will still take a bath and several will likely need a bailout to avoid going out of business.