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'Dumb Money' Loses $13.1B in Latest GameStop Stock Mania

investors.com

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Re: 'Dumb Money' Loses $13.1B in Latest GameStop Stock Mania

#2

Post by caseyy »

This article cherry-picks the time window to make such a claim. You can do this for many volatile stocks.

GME looks like it was probably pumped and dumped (intentionally or not), but it is up 107% month on month currently. So the report could easily be “investors double their money”. It’s meaningless.

The article also doesn't mention the actual reasons people invest into GME. It’s a meme stock. People also claim to buy it in protest of aggressive short-selling by large funds that ruins small businesses. I don’t know if anyone really expects to make money on it beyond the potential pump and dump ride-along.

The link is very biased and sensationalist. What’s going on with GME is quite interesting, in contrast.

Re: 'Dumb Money' Loses $13.1B in Latest GameStop Stock Mania

#5

Post by bbor »

caseyy wrote: post #2

This article cherry-picks the time window to make such a claim. You can do this for many volatile stocks. GME looks like it was probably pumped and dumped (intentionally or not), but it is up 107% month on month currently. So the report could easily be “investors double their money”. It’s meaningless. The article also doesn't mention the actual reasons people invest into GME. It’s a meme stock. People also claim to b…

If by “meme stock” you mean “a stock that is bought for fun instead of financial or political gain”, then IMO the article is right on. That’s basically the textbook definition of maniacal/irrational behavior - like a poker strategy unrelated to the cards dealt.

Re: 'Dumb Money' Loses $13.1B in Latest GameStop Stock Mania

#6

Post by heybrendan »

caseyy wrote: post #2

This article cherry-picks the time window to make such a claim. You can do this for many volatile stocks. GME looks like it was probably pumped and dumped (intentionally or not), but it is up 107% month on month currently. So the report could easily be “investors double their money”. It’s meaningless. The article also doesn't mention the actual reasons people invest into GME. It’s a meme stock. People also claim to b…

Quite interesting indeed. From Gamestop's recent Form 10-K (Q4 2023) SEC filing:

> "As of March 20, 2024 [...] approximately 75.3 million shares of our Class A common stock were held by registered holders with our transfer agent (or approximately 25% of our outstanding shares)."

I've never seen anything like this. It seems absolutely unprecedented.

Recently Ian Carroll posted an overview [2] on X where he attempts to untangle the mess of the chaos surrounding Gamestop and its stock. I'm not going to pretend to understand the (dys?)function of our financial markets or everything that he shared, but my eyes are peeled.

[1] https://news.gamestop.com/node/20376/html

[2] https://x.com/Cancelcloco/status/1790524969623175629

Re: 'Dumb Money' Loses $13.1B in Latest GameStop Stock Mania

#7

Post by jcranmer »

meowface wrote: post #3

Good, long video covering the whole GameStop stock phenomenon (among other things): https://www.youtube.com/watch?v=5pYeoZaoWrA

Even if you think you know the topic, if you haven't seen the video, you probably don't know all of the topic.

The TL;DR is that the people involved have gotten to the point where they believe that a) the short squeeze hasn't happened yet, b) when it happens, it will take down the entire financial system, and c) everyone who holds Gamestop stock at the time will become fabulously wealthy.

Re: 'Dumb Money' Loses $13.1B in Latest GameStop Stock Mania

#9

Post by dash2 »

I think it's kind of sad. Roaring Kitty started off doing pretty deep analysis of Gamestop. He was an early contrarian who confidently and politely disputed critics on r/wallstreetbets, bringing data to show the company was undervalued. Now it seems he's just decided to be one of those guys who tweets a meme, sets off a gambling frenzy, and (presumably) makes bank. It's no different from a pyramid scheme.

Re: 'Dumb Money' Loses $13.1B in Latest GameStop Stock Mania

#10

Post by lfmunoz4 »

heybrendan wrote: post #6
caseyy wrote: post #2

This article cherry-picks the time window to make such a claim. You can do this for many volatile stocks. GME looks like it was probably pumped and dumped (intentionally or not), but it is up 107% month on month currently. So the report could easily be “investors double their money”. It’s meaningless. The article also doesn't mention the actual reasons people invest into GME. It’s a meme stock. People also claim to b…

Quite interesting indeed. From Gamestop's recent Form 10-K (Q4 2023) SEC filing: > "As of March 20, 2024 [...] approximately 75.3 million shares of our Class A common stock were held by registered holders with our transfer agent (or approximately 25% of our outstanding shares)." I've never seen anything like this. It seems absolutely unprecedented. Recently Ian Carroll posted an overview [2] on X where he attempts to…

held by registered holders with our transfer agent

what does this mean? what is the significance?

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