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The Battle of GameStop

paranoidenough.com

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Re: The Battle of GameStop

#51

Post by andreilys »

fennecfoxen wrote: post #9
vga805 wrote: post #5

Earlier quoted context omitted.

the bull thesis has been laid out in detail for months and it's a good one, this is organic interest, Ryan Cohen and others coming over from Chewy was the most recent catalyst

People exist who in the past two days paid $150 for a share that most analysts think is worth about $14 — at a company with negative earnings for six of the last seven quarters, and minimal earnings growth over the past few years. I'm sure there was some bull case for the company, and it might have had a snowball's chance in hell around $14 or even $20/share. But at $60+ ? What on God's good earth is supposed to make…

It’s a short squeeze. Short selling investors who get margin called have to close their short positions, thus forcing them to purchase GME stock and driving it further up

Re: The Battle of GameStop

#52

Post by ralph84 »

Retail investors are supposed to buy and hold all of the stocks, because they couldn't possibly be smart enough to pick the good ones.

Hedge funds are supposed to be allowed to naked short the stocks they don't like into oblivion, transferring wealth from retail investors to hedge funds.

The hysteria and pearl clutching at this wealth transfer being reversed is hilarious.

Re: The Battle of GameStop

#53

Post by phil_e_delphian »

fennecfoxen wrote: post #9
vga805 wrote: post #5

Earlier quoted context omitted.

the bull thesis has been laid out in detail for months and it's a good one, this is organic interest, Ryan Cohen and others coming over from Chewy was the most recent catalyst

People exist who in the past two days paid $150 for a share that most analysts think is worth about $14 — at a company with negative earnings for six of the last seven quarters, and minimal earnings growth over the past few years. I'm sure there was some bull case for the company, and it might have had a snowball's chance in hell around $14 or even $20/share. But at $60+ ? What on God's good earth is supposed to make…

DoorDash has had negative earnings for all but 2 (1?) quarters it has existed, and trades at about $190 a share, despite direct competition from multiple functionally identical competitors.

The market is broken, at least retail investors are benefiting for once.

Re: The Battle of GameStop

#54

Post by totalZero »

trap_chateau wrote: post #11
throwaway0a5e wrote: post #2

They're not winning. They're just minting a different set of losers and pushing the drawing out by a couple weeks. And Reddit being Reddit you can never really be sure whether organic interest is pumping the stock or if they are being manipulated by an astroturfing campaign. If day trading weren't a conflict of interest for me I'd be looking into doing something like that (and consequently not blabbing about it on HN…

I think I'm convinced of manipulation. The memeing and the gameifying investment, calling each other retards (because you, user, you don't know _anything_) and the long obscure unfalsifiable ramblings about predictions or valuable investments hitting the top of the page, it all just seems a little fishy to me.

Hard to argue that reddit is a cartel.

On the other hand, the multi-billionaires who are loaning one another billions of dollars to batten down their GME shorts....that seems somewhat manipulative to me.

These hyper-rich guys babble on about efficient markets but they work together to corner the market on particular securities. And they don't do it in public on the internet. They use the full weight of their reputations and relationships.

Re: The Battle of GameStop

#55

Post by Spivak »

thepasswordis wrote: post #35

>We can remain retarded longer than they can remain solvent. There is a tremendous amount of spite involved here. They hate the boomers, and they hate the institutional wallstreet investors and hedgies. And why shouldn't they? These people play with our lives and get fantastically wealthy by gambling with our retirement accounts. I saw that some hedge fund got wiped out today by this. Sorry I won't be shedding any te…

> These people play with our lives and get fantastically wealthy by gambling with our retirement accounts.

I’m actually kinda confused by this. Are we not rooting for them in some respect? As long as I make money too and my retirement account grows what do I care if they take some off the top? The returns I get are way better than I could get on my own.

Re: The Battle of GameStop

#56

Post by in3d »

dvt wrote: post #6

> The same emotion that caused us to root for the thieves in Ocean’s 11 is what makes Wall Street Bets so enticing. Put frankly, Millennials are tired of getting fucked by the man. When you’re underemployed with $100,000 in student loan debt, your financial situation feels overwhelming. You really don’t want to take the advice of your parents or CNBC talking heads [5] to invest 10% of your salary for a 4% annual retu…

Getting rich through a greater fool theory and creating a bubble in a small stock is not something I’d be proud of. You’re sticking it to the least knowledge Johnny-come-latelies who will be left holding the bag. Thinking that you’re screwing Goldman Sachs is delusional.

Re: The Battle of GameStop

#57

Post by paxys »

admax88q wrote: post #32
IIAOPSW wrote: post #15

I've wrote this elsewhere. The thing that's clicked for me after reading the comments on wsb is that populism, amplified by the modern internet, is going to radically change the finance world in a similar way to how it radically changed our political landscape. These people aren't just investing in GME to enrich themselves. They are doing it to spite the people who they percieve as rigging the game. They are doing it…

I think this is more like beanie babies all over again. Except now that its easier to trade its happening in stocks. Populism of a companies stock doesnt really change the performance of that company. GME will implode eventually and the newest suckers or WSB will be left holding the bag.

The difference is that our economy wasn't held together by beanie babies. A stock market crash has very wide ranging effects, not only to bankers but also retirees, blue collar workers, homeowners, new graduates and basically everyone else.

Re: The Battle of GameStop

#58

Post by jefftk »

ralph84 wrote: post #52

Retail investors are supposed to buy and hold all of the stocks, because they couldn't possibly be smart enough to pick the good ones. Hedge funds are supposed to be allowed to naked short the stocks they don't like into oblivion, transferring wealth from retail investors to hedge funds. The hysteria and pearl clutching at this wealth transfer being reversed is hilarious.

> Hedge funds are supposed to be allowed to naked short the stocks they don't like into oblivion

Naked shorting has been illegal for a decade: https://money.cnn.com/2008/09/17/news/companies/sec_short_se...

Re: The Battle of GameStop

#59

Post by Centigonal »

0b01 wrote: post #31
IIAOPSW wrote: post #15

I've wrote this elsewhere. The thing that's clicked for me after reading the comments on wsb is that populism, amplified by the modern internet, is going to radically change the finance world in a similar way to how it radically changed our political landscape. These people aren't just investing in GME to enrich themselves. They are doing it to spite the people who they percieve as rigging the game. They are doing it…

In fact, Citadel Securities has gained a lot money from the $GME event. Citadel Securities pays tens of millions of dollars for Robinhood order flow.

Is Citadel really making a lot of money from the GME squeeze?

I know they rebate Robinhood for order flow (I've even commented about it [1]), but I thought events like this were hard for MM firms to capitalize on because of the unpredictable nature of the price action and the high cost of hedging (there are no shorts available, how do you even delta hedge in that situation?).

Am I missing something?

[1] https://news.ycombinator.com/item?id=25217794

Re: The Battle of GameStop

#60

Post by refurb »

dvt wrote: post #6

> The same emotion that caused us to root for the thieves in Ocean’s 11 is what makes Wall Street Bets so enticing. Put frankly, Millennials are tired of getting fucked by the man. When you’re underemployed with $100,000 in student loan debt, your financial situation feels overwhelming. You really don’t want to take the advice of your parents or CNBC talking heads [5] to invest 10% of your salary for a 4% annual retu…

I was explaining to a friend of mine a few weeks ago why cynicism is so prevalent in our generation

Where have I heard this before?

” As adolescents and young adults in the 1980s and 1990s, Xers were dubbed the "MTV Generation" (a reference to the music video channel), sometimes being characterized as slackers, cynical, and disaffected.”

https://en.m.wikipedia.org/wiki/Generation_X

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