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Facebook shuts popular stock trading group amid GameStop frenzy

reuters.com

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Re: Facebook shuts popular stock trading group amid GameStop frenzy

#351

Post by JumpCrisscross »

Const-me wrote: post #309
graeme wrote: post #230

Earlier quoted context omitted.

What? Facebook obviously isn’t a natural monopoly. WSB is mainly on reddit, was active on discord, and congregates elsewhere. I don’t think Facebook should have shut down WSB but that doesn’t make them a monopoly. As for monopoly in general, there’s Tiktok, Snapchat. Clubhouse just raised a big round. The blue facebook app is actually anything but a monopoly, as Instagram (a facebook property) gets much more enthusia…

> Facebook obviously isn’t a natural monopoly Why not? It fits the definition from the article. “An industry in which high infrastructural costs and other barriers to entry give the largest supplier in an industry an overwhelming advantage over potential competitors” In case of FB the infrastructural cost is less of an issue, at least not anymore. I think Amazon and Microsoft are capable of hosting at least a dozen F…

Natural monopolies don't have to continuously buy up emerging competitors. Facebook's network effects are strong. But they aren't insurmountable.

Re: Facebook shuts popular stock trading group amid GameStop frenzy

#352

Post by jmalicki »

ttt0 wrote: post #350
Thorrez wrote: post #342

Earlier quoted context omitted.

>It's why have they all decided to act right now They might have decided in many cases to act now, but with this specific case it seems to have been 11 days ago: >Facebook suspended his group on Jan. 7

I think this is a mistake. They already issued one correction from "20-member" to "20,000-member". The author seems to have serious problems with numbers. Look at the first paragraph: > Facebook Inc took down a popular Wall Street discussion group, Robinhood Stock Traders, in a move that its founder on Thursday described as backlash for conversations buoying shares of GameStop Corp and other companies this week. Firs…

Not a typo, a totally appropriate word. The conversations buoyed the shares, they did not buy them.

https://dictionary.cambridge.org/us/dictionary/english/buoyi...

Re: Facebook shuts popular stock trading group amid GameStop frenzy

#353

Post by mitch3x3 »

PragmaticPulp wrote: post #295
Avicebron wrote: post #255

Earlier quoted context omitted.

That's not really what this is about though. It's not about pardon the pun..Robin hooding the wealth from the rich to the poor, it's about casting light on practices that are disproportionately in favor of the wealthy. Hence bans on groups trying to do this in clever ways.

That’s the narrative they’re using to convince new players to hold the bag. It’s not true, though. Do you really think Redditors are YOLOing thousands of dollars into a stock with the understanding that they’re going to lose most of it? Are they really spending thousands of dollars on some laughs? No, they’ve been convinced that this trade is free money. They’ve also been convinced this money is coming from evil bad…

Nope, a lot of the wallstreetbets community are in this because they recognize that squeezing an over-leveraged short position will make a stock go vertical until bankruptcy or govt intervention.

I think they absolutely know they can lose it all. But the risk/reward ratio was so amazing it made sense to throw money at it and see what happens.

Re: Facebook shuts popular stock trading group amid GameStop frenzy

#354

Post by ttt0 »

jmalicki wrote: post #352
ttt0 wrote: post #350

Earlier quoted context omitted.

I think this is a mistake. They already issued one correction from "20-member" to "20,000-member". The author seems to have serious problems with numbers. Look at the first paragraph: > Facebook Inc took down a popular Wall Street discussion group, Robinhood Stock Traders, in a move that its founder on Thursday described as backlash for conversations buoying shares of GameStop Corp and other companies this week. Firs…

Not a typo, a totally appropriate word. The conversations buoyed the shares, they did not buy them. https://dictionary.cambridge.org/us/dictionary/english/buoyi...

Thanks, English is not my native language.

Re: Facebook shuts popular stock trading group amid GameStop frenzy

#355

Post by mitch3x3 »

robbmorganf wrote: post #283

Quick question: is anything stopping GameStop itself from authorizing a whole bunch new shares and selling them at this all-time-high price? I understand the Redditors trust each other, but what makes them think they can trust GameStop?

I believe they are limited to issuing 100k at a time and spaced out much larger than is currently needed to take advantage of the situation. This is all part of the calculated short squeeze.

Re: Facebook shuts popular stock trading group amid GameStop frenzy

#356

Post by bawolff »

jb775 wrote: post #272
wvenable wrote: post #110

Earlier quoted context omitted.

It might be fishy but there is also a lot new interest in WSB and everything related. So much interest that /r/WSB voluntarily shut themselves down for a while because they couldn't handle the moderation situation. So why it's happening now can more multifaceted than the more conspiratorial reasons. Even increased media attention is enough for someone to act -- The Hackernews community uses that all the time to get a…

Serious question: Since Facebook is a private company, does the "if you don't like it, you can build your own platform" argument apply here? Or does that only apply selectively when it benefits partisan politics? The RobinHood $GME situation is the natural next step in societal evolution once extreme censorship is given a pass. If you support the "go build it yourself" argument, you no longer have the right to compla…

I disagree, its consistent to think that people who violate facebooks policies should go build it themselves once blocked, but that this does not violate them meaningfully (saying something sarcastically is not the same as actually saying it), and that facebook should consistently follow its own rules.

There's a definite middle ground between facebook should be able to do whatever it wants with impunity and facebook should never be able to moderate anything ever.

Re: Facebook shuts popular stock trading group amid GameStop frenzy

#357

Post by ceilingcorner »

quantummkv wrote: post #273
paxys wrote: post #2

> The notification, seen by Reuters, said without detail that the group violated policies on “adult sexual exploitation.” That's some bullshit right there. Spin the wheel, come up with a random charge, and ban the entire community with zero recourse and no way to appeal.

The slippery slope is in full effect. Platforms engaged in mass, coordinated de-platformings and people lapped it up because orange man bad. Now the orange man is gone, but the mass coordinated de-platformings still remain and are now being wielded for YOLO reasons. I have been on wsb subreddit and discord server for a long time. There has been zero change in the culture or the type of content or the tone of the conv…

We all said this when it was happening. No one listened.

Re: Facebook shuts popular stock trading group amid GameStop frenzy

#358

Post by Thorrez »

ttt0 wrote: post #350
Thorrez wrote: post #342

Earlier quoted context omitted.

>It's why have they all decided to act right now They might have decided in many cases to act now, but with this specific case it seems to have been 11 days ago: >Facebook suspended his group on Jan. 7

I think this is a mistake. They already issued one correction from "20-member" to "20,000-member". The author seems to have serious problems with numbers. Look at the first paragraph: > Facebook Inc took down a popular Wall Street discussion group, Robinhood Stock Traders, in a move that its founder on Thursday described as backlash for conversations buoying shares of GameStop Corp and other companies this week. Firs…

Hmm, good point, I didn't think of that possibility. It's a very confusing article, as I mentioned in a different comment: https://news.ycombinator.com/item?id=25954579

Re: Facebook shuts popular stock trading group amid GameStop frenzy

#360

Post by mitch3x3 »

mike00632 wrote: post #280
djanogo wrote: post #218

Earlier quoted context omitted.

This is not related to Gamestop as a company. This is about a instrument (GME) which was over leveraged short position, and is way out of balance. Doesn't matter what Melvin says, the short % is there for everybody to see and some one is still very short. Retail investors want to use the said instrument to legally make lot of money.

Why is it "over leveraged"? What makes you think the stock is "out of balance"? The hype men will have you believe that there is some magic percentage or tipping point that makes it a good buy but it's pure bunk. If GME has any relationship to the company GameStop (which it does) the stock should be in the toilet and is very likely to go out of business soon, which makes a massive short position very reasonable.

Go read the current financial position yourself. The hedge funds still have to buy over 100% of the total amount of GME shares to cover their short positions. To do that they need to buy existing shares at current market value or they go bankrupt. Its a vicious cycle. Go look at previous short squeezes that have happened.
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