Didn't Hertz self say, don't buy the stocks because they are worthless and we are broke?
Yep, as they raised a round of capital. The people buying Hertz then were out of their minds.
Hertz, the original meme stock, is turning out to be worthless
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Re: Hertz, the original meme stock, is turning out to be worthless
#42Earlier quoted context omitted.
At the end of the day, people are betting on what they believe (or throwing away their money for the lulz). I genuinely, no bullshit, think TSLA is more irrational than GME, and has been for years. I put my money where my mouth is and I'm up 5x in 2 weeks. I know it won't last, but hey TSLA is crashing too. Nothing lasts forever.
All this retail interest in meme stocks is gambling, plain and simple. More people entering the market creates a Ponzi effect where new entrants pay for the gains of holders, but by definition this is unsustainable. You can see this basically everywhere in the economy but the meme stocks are the most obvious. Not financial advice, I thought Tesla was laughably over valued at $40 a share, never bet more than you’re wi…
Investing in any stock is gambling, plain and simple. The only difference is your risk tolerance.
Remember when it was impossible for real estate investments to lose money 15 years ago?
Re: Hertz, the original meme stock, is turning out to be worthless
#43Earlier quoted context omitted.
Indeed nothing lasts forever but TSLA at least has something to show while GME's business is passé. TSLA is overpriced but at the moment it crashed and will jump back to new heights. Why not take advantage of the notoriety and make a gain yourself?
I think it's obvious that I am holding a substantial amount of GME right now, and I think I should disclose that. Ryan Cohen, the guy who founded Chewy, is on the board for GME and leading an initiative to transform Gamestop into an e-commerce store. In other words he wants to compete directly with Steam, and while many don't realize it yet, Amazon. And this is one of the only people in history who has successfully b…
> I don't think this will happen.
Do you mean you don't think they'll compete with Twitch, or you don't think they'll compete with Steam and Amazon?
Personally I think investing in GME today is no different than investing in Blockbuster ten years ago. Competing with Steam is a terrible idea. EA tried it with Origin and despite having huge exclusive franchises, they're essentially throwing in the towel by abandoning the Origin branding and moving their newest titles back to Steam. There are also few physical goods to ship anymore so the experience in selling pet supplies online is irrelevant. Something like 80% of PS5s sold are the digital-only model; they don't even have a disk drive (and 99% of modern PCs don't have one either.)
Most of GameStop's profit was on used games. A game would get purchased, completed in a few days, then sold back to GameStop. When GameStop re-sells it as used, that's pure profit; the original publisher doesn't get a cut. Rinse and repeat a few times and within a few weeks of the launch of a game, GameStop has made more money off of it than the game developers. This is no longer possible with digital game sales. These games are locked to accounts and cannot be individually transferred. (And if you think GameStop's digital storefront will support game resales to try to capture this profit, no publisher in their right mind would publish their games on it!)
Re: Hertz, the original meme stock, is turning out to be worthless
#44Earlier quoted context omitted.
GME is not bankrupt yet (it is indeed overpriced and comparable to HRTZ), but TSLA and BTC? They don't belong to the same categories. TSLA and BTC will see a lot of gains to come. Eventually without a definite date what goes up comes down but it'd be silly to not take a piece of the pie yourself and keep your savings in cash...
At the end of the day, people are betting on what they believe (or throwing away their money for the lulz). I genuinely, no bullshit, think TSLA is more irrational than GME, and has been for years. I put my money where my mouth is and I'm up 5x in 2 weeks. I know it won't last, but hey TSLA is crashing too. Nothing lasts forever.
TSLA is crashing because TSLA is not worth more than the rest of the top 10 manufacturers combined, as their market cap would suggest.
Other notable differences include actively building the largest and most advanced factories on every major continent, disrupting the entire automobile industry such that even jaguar is going full electric by 2025, mainstreaming self-driving, and cutting the costs of residential solar in half.
Meanwhile, gamestop is trying to make a profit out of a portfolio of dusty commercial real estate.
Re: Hertz, the original meme stock, is turning out to be worthless
#45I think TSLA and AMD were the original meme stocks.
AMD isn't a meme stock - I knew it was going to be a safe bet when it was at 5, but didn't have money to do anything with it. It is guaranteed to exist, as it is the only x86 competitor to Intel, and IIRC their x86 license is non-transferable. It is nvidia's only main competitor. It does its job pretty well. Is it a blue chip in terms of stability? Clearly it is a bit more volatile. But it isn't dying anytime soon.
I give myself one good hard slap to the face every morning, because I bought AMD in the ~$5/share range, and then sold when it managed to get to ~$7/share because I didn’t think it was going anywhere. And then I go stand at the window and gaze longingly at my imaginary WRX parked outside.
Sigh. If I only had known exactly how badly Intel would do…I bought the stock because I figured they’d get a little bump because of console sales, and then got impatient.
Re: Hertz, the original meme stock, is turning out to be worthless
#46I think TSLA and AMD were the original meme stocks.
AMD isn't a meme stock - I knew it was going to be a safe bet when it was at 5, but didn't have money to do anything with it. It is guaranteed to exist, as it is the only x86 competitor to Intel, and IIRC their x86 license is non-transferable. It is nvidia's only main competitor. It does its job pretty well. Is it a blue chip in terms of stability? Clearly it is a bit more volatile. But it isn't dying anytime soon.
Respectfully those are meme stock arguments. A company can have all those things and be worth between 0 and 1 trillion, the question is whether the company is valued accurately by the markets and worth the price.
Tesla is valued at what Apple was in 2019, but hasn’t made any profit ever without tax credits. AMD is at $100 billion, which seems high but could be worth it. Doesn’t matter if they mismanage cash and have to be acquired though.
Re: Hertz, the original meme stock, is turning out to be worthless
#47It's not worth discussing BTC, TSLA, GME, or HTZ. That is missing the forest for the trees.
The degradation of even the appearance of an orderly market is the story. The money movement (volume of excess trades X magnitude of price change) seems out of reach of unleveraged retail. Faith in private and public institutions is justifiably poor, but also under organized attack.
This is going to end badly for everyone, except perhaps for China.
Re: Hertz, the original meme stock, is turning out to be worthless
#48Obviously? The company was bankrupt. People who bought HRTZ after bankruptcy had to have known it was a game of financial musical chairs, much like GME, TSLA or BTC.
That seems like a bit of a simplistic view spurred on by people who don’t know what Chapter 11 is.
It’s not “we don’t have any more money” or “we aren’t making any money”, it’s “we need a little court-mandated breathing room (from our creditors) to change x, y, and z, and then we’ll be ok”.
Re: Hertz, the original meme stock, is turning out to be worthless
#49Re: Hertz, the original meme stock, is turning out to be worthless
#50Earlier quoted context omitted.
AMD isn't a meme stock - I knew it was going to be a safe bet when it was at 5, but didn't have money to do anything with it. It is guaranteed to exist, as it is the only x86 competitor to Intel, and IIRC their x86 license is non-transferable. It is nvidia's only main competitor. It does its job pretty well. Is it a blue chip in terms of stability? Clearly it is a bit more volatile. But it isn't dying anytime soon.
I give myself one good hard slap to the face every morning, because I bought AMD in the ~$5/share range, and then sold when it managed to get to ~$7/share because I didn’t think it was going anywhere. And then I go stand at the window and gaze longingly at my imaginary WRX parked outside. Sigh. If I only had known exactly how badly Intel would do…I bought the stock because I figured they’d get a little bump because o…
It’s all gambling. People need to stop expecting to strike it rich and just build wealth incrementally. Central banks have made that hard to do though with historically low interest rates and rising risks of inflation.