So is anybody planning on upgrading their NAS after hitting it big on Gamestop stock?

[NAS Newbie]

Not me, but I find the situation fascinating.

 

[vtsakiris]

truly amazing story,
at last some golden boys from hedge funds found themselves on the wrong end of the stick!!!

 

[WST16]

No GME stocks here, but I like the short squeeze.

The “squeezed” powerful are blaming Reddit. Who would’ve thought that a platform full of users racing to create memes can do that. More power to them

 

[fredbert]

First I’ve heard of this, what’s happening?

 

[WST16]

The Irony in the GameStop (GME) Story

I am finding the GameStop (GME) story so fascinating. It is just dripping with irony.

www.nasdaq.com

-- post merged: 28. Jan 2021 --

It’s like a DDoS attack on stocks

 

[fredbert]

Thx. I understand it now. Oops!

Though if the reason the price is rising is that changes at the company give it a brighter future than was otherwise thought then, hopefully, that’s good news for those employed at GamsStop.

 

[WST16]

The price is rising because of the short selling squeeze.

 

[NAS Newbie]

First I’ve heard of this, what’s happening?

I think of it as the first crowd-sourced takedown of a hedge fund. It is incredibly interesting and I hope they pull it off. There's a user whose username is NSFW that invested something like $50k back in september 2019. He's been posting daily screenshots of his balance. He's now worth north of $44 million based on that one move. He's pretty much the reddit hero. Once he sells the whole thing is going to come crashing down.

-- post merged: 28. Jan 2021 --

yeah, gamestop's current business model using brick and mortar stores will go the way of blockbuster. They were hoping to develop an e-business arm, but that's not the reason price is skyrocketing. Its skyrocketing because the reddit group noticed a hedge fund extremely over-shorted and decided to make them pay. All the media and Wall Street types are complaining about the supposed market manipulation while ignoring the fact that the hedge fund was severely manipulating the market to try and drive GME out of business. The hedge fund got itself into this mess, they deserve every loss they get.

 

[Telos]

As "funny" as this first appears, it risks taking down the entire market as affected firms will inevitably sell off long-positions to raise funds to cover the losses. Overall, a poorly conceived plan devised by those lacking market savvy. Stupid is as stupid does.

 

[NAS Newbie]

That certainly wouldn't be good, but it is also pretty disgusting the moves that big money is taking to try and freeze out the little guys. If the big guys hadn't gambled so big to begin with, we wouldn't be in this situation. I don't know a ton about the stock market, but I really doubt that this is going to tank the entire market. Some of the firms might have to liquidate some stock to raise funds, but everyone else will know what is going on and buy those stocks at the discount knowing that once this blows over the overall market will return to normalcy somewhat. The NYSE traded $30 trillion in 2018 (best number I could find). If GME has cost investors say $10 billion so far, that's only 0.03% of just the NYSE annual trade. It isn't even a water molecule in the bucket.

 

[WST16]

As "funny" as this first appears, it risks taking down the entire market as affected firms will inevitably sell off long-positions to raise funds to cover the losses. Overall, a poorly conceived plan devised by those lacking market savvy. Stupid is as stupid does.

So it’s ok for hedge funds to game the market and drive companies to bankruptcy to squeeze every last cent out of them, while if individuals try to exercise their right to buy stocks in a free market are blocked (TD and Robinhood)?
The epitome of hypocrisy IMO.

Anyways, the trend is spreading, Europe and SEA (Malaysia) now.

 

[vtsakiris]

It is getting very complicated to follow...
I will pause for now and wait until - MOST PROBALBLY -
someone in Hollywood will make the full story into a MOVIE!!!

Big Short 2 (Reddit Strikes Back)

 

[fredbert]

Have found something to help me understand this

Confused about GameStop? Five films to watch to help you pretend to understand the stock market

You don’t have to be a redditer or a big investor to enjoy these Hollywood blockbusters that double as the perfect educational resource

www.theguardian.com

 

[WST16]

This might help…

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[NAS Newbie]

Big Short 2 (Reddit Strikes Back)

A more fitting title would be "The Big Long", but that sounds like a porno.

-- post merged: 30. Jan 2021 --

Have found something to help me understand this

Don't feel bad. Everything I've written here I've learned in about the last week. I just think it is incredibly interesting. We are witnessing history being made in the financial markets, and the repercussions will be lasting.