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GameStop Is Rage Against the Financial Machine

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Re: GameStop Is Rage Against the Financial Machine

#591

Post by 0000011111 »

Domenic_S wrote: post #548
levesque wrote: post #336

Earlier quoted context omitted.

That's not the point. This is a purely technical play, fundamental valuation methods have been thrown out the window a long time ago. Game stop is maybe worth 5-40$, but these reddit WSBers think the stock will keep rising due to the short squeeze, beyond 1000$ even. Just grab some popcorn and watch the show.

> Game stop is maybe worth 5-40$ What fundamentals make you think that? That's substantially discounted vs revenue.

Its worth what people will pay for it. This time last year that was ~$4 per share. The company is looses money to firms like AMZ. And then WallStreet bets came in and pumped it up. It's been really fun to watch.

Re: GameStop Is Rage Against the Financial Machine

#592

Post by dash2 »

SomewhatLikely wrote: post #435
wesammikhail wrote: post #391

Earlier quoted context omitted.

You´re right in the short term. But in the long term the hope is that things average out and true value emerges as a function of countless transactions over years and years. Markets are a value ascribing heuristic machine. There is nothing about them that can deterministically point to objective value. However, the idea is that over a longer period of time, an approximation of true value emerges though wisdom of the…

I would say it's more than a hope. Any trader whose strategy is closer to optimal will have larger profits over time and come to own a larger and larger fraction of the market. Though saying that out loud makes me realize optimal doesn't have to mean buying and selling according to true value. Optimal would in fact be predicting the behavior of other participants and trading off those predictions. I still think certa…

"It is not a case of choosing those [faces] that, to the best of one's judgment, are really the prettiest, nor even those that average opinion genuinely thinks the prettiest. We have reached the third degree where we devote our intelligences to anticipating what average opinion expects the average opinion to be. And there are some, I believe, who practice the fourth, fifth and higher degrees." Keynes, 1936.

Re: GameStop Is Rage Against the Financial Machine

#593

Post by cwkoss »

nerfhammer wrote: post #504
ta1234567890 wrote: post #384

This is a great example of how the stock market is not about fundamentals, just like Bitcoin, it’s all about popularity and perception. In the end, people don’t care if the “stock is really worth” the price, they only care if themselves or someone else are willing to pay the price, nothing else really matters.

but a stock is partial ownership of a real business, which has revenue and owns other assets

That is true for businesses with "reasonable" P/E multiples of ~5 or less.

When a business has a P/E multiple of >100+, a significant portion of the investment is speculative rather than a rational projection assets and future earnings.

It's really hard to make a rational value fundamentals argument for why anyone is willing to invest in TSLA, with its current price putting its P/E of 1700.

Re: GameStop Is Rage Against the Financial Machine

#594

Post by qeternity »

Cyph0n wrote: post #575
JumpCrisscross wrote: post #556

Earlier quoted context omitted.

There is a third factor: a generation of investors who have never really lost money in the market.

I don’t think it’s about that at all. If you follow the subreddit at all, you’d see that WSB investors have been losing immense amounts for a long time now. I think the primary thing that baffles the more traditional investing establishment is how irrational WSB investors actually are.

/r/wsb are not the prototypical Robinhooder who have followed on behind them.

Re: GameStop Is Rage Against the Financial Machine

#595

Post by stefan_ »

jaxwerk wrote: post #329
ping_pong wrote: post #66

Earlier quoted context omitted.

You don't understand. The original multi million dollar positions with WSB are static now. They're not trading anymore. They can't possibly boost the stock price any further. The way the stock price goes up is by more volume coming in at the highs. But we are talking 57 M shares traded at noon today with outstanding float of 65M. Those are professional day traders propelling the stock. Buying high and selling higher.…

Margin calls are surely coming for large short positions, starting Friday and likely continuing in coming weeks. If the short positions need to cover, there's forced demand.

The stock went 20 -> 300, surely whatever short positions there are were long ago margin called.

Re: GameStop Is Rage Against the Financial Machine

#596

Post by thrwyoilarticle »

jodrellblank wrote: post #538
restingrobot wrote: post #440

Earlier quoted context omitted.

You're forgetting the stock is 125% over shorted. There literally isn't enough stock for shorts to cover their current positions. That's why there is potential for infinite, (huge) gains as long as everyone holds.

What I've been wondering is, why do people think the 125% over-shorted has to expire all at the same time and imminently? While there isn't 125% available to buy in one go, there is trading happening, HedgeFund2 can be buying and returning their loaned shares this week, HedgeFund3 can be buying and returning theirs next week, HedgeFund4 the week after, and at no point does any group need to buy 125% of available shar…

Shorts don't expire.

Re: GameStop Is Rage Against the Financial Machine

#597

Post by JohnHaugeland »

throw0101a wrote: post #568
fennecfoxen wrote: post #558

Earlier quoted context omitted.

> So basically like almost every other trade? No; most trades are traded because you expect when you're "left holding the bag" that bag will have money in it.

You can expect whatever you want. What actually happens is something else. On any given trade you can end up with something worth more or less than what you started with. Even if you sell and cash out, you may end up "losing" because things went on to perform better than you expected and the person/entity on the other end of the trade knew something you didn't. The market owes you nothing.

You're loudly and carefully missing the point.

The expectation is that investment is done to derive ownership of something with actual value.

This is a public pump and dump scheme masquerading as a righteous uprising.

Nobody said the market owed anyone anything. Save the sophism. Idiots are getting bilked, those are the answer to your question, and they still exist even if you want to re-define around them.

This is illegal for a reason.

Re: GameStop Is Rage Against the Financial Machine

#598

Post by TuringNYC »

anotherman554 wrote: post #424
TuringNYC wrote: post #344

Earlier quoted context omitted.

This Reddit Post is very revealing: https://twitter.com/inactivist_/status/1354537152445521923/p...

Being without a relationship has never made me want to go to Vegas and gamble my 401k on blackjack.

Being without a relationship was Galloway's take. This poster's take is that he's find going to zero because him and many others would rather stick it to the man, even if it means the stocks go to zero eventually.

Re: GameStop Is Rage Against the Financial Machine

#599

Post by TuringNYC »

hnuser847 wrote: post #430
TuringNYC wrote: post #344

Earlier quoted context omitted.

This Reddit Post is very revealing: https://twitter.com/inactivist_/status/1354537152445521923/p...

That's the lamest take I've seen yet. They identified a short squeeze opportunity and exploited it. No Freudian analysis needed.

It is only exploitation if he's trying to get out, it seems he's in and doesnt want to get out just so he can stick it to the big players.

Re: GameStop Is Rage Against the Financial Machine

#600

Post by mancerayder »

Today alone:

/r/wallstreetbets goes private

GME plunges after hours

Politicians tweet attacking Wall Street (https://www.businessinsider.com/gamestop-warren-aoc-slam-wal... ) and referencing retail.

Hilarious comments on a now-godlike video of a guy who made a long analysis of GME in July. https://www.youtube.com/watch?v=GZTr1-Gp74U&feature=youtu.be

Much discussion on the topic ensures, on HN and elsewhere.

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