No Excuses Posted January 25, 2021 Share Posted January 25, 2021 (edited) https://www.bloomberg.com/news/articles/2021-01-25/how-wallstreetbets-pushed-gamestop-shares-to-the-moon Quote Short sellers have been called a lot of things. Bloodsuckers. Parasites. Other words not fit to print. Now in the vortex engulfing GameStop Corp., they have a new name: the establishment. It’s a role cast for them with relish by their chat-room usurpers, the tens of thousands of average Joe day-traders whose fervor for a left-for-dead retailer has become a self-fulfilling prophecy in its 245% rally this year. GameStop has become a money geyser for the options-obsessed crowd that gathers in Reddit’s WallStreetBets forum. For those wagering on a decline, it’s been a catastrophe. Give credit where it’s due. In their frenzy, WSB’s ****y hordes have managed to turn the tables in a game short sellers invented, spinning gold from the complacency of others. Before this year, GameStop was a cash register for bearish traders, who borrowed and sold more shares than the company issued. Hedge funds had been winning so long that they overlooked the tinderbox they were creating should sentiment turn. Now it has, violently. GameStop, which isn’t expected to turn a profit before 2023, has seen its market value triple to $4.5 billion in three weeks, burning the skeptics whose any attempt to cover is likely to further propel its ascent. This story is already an all-time internet classic and it’s only going to get so much worse. Edited January 25, 2021 by No Excuses Link to comment Share on other sites More sharing options...
No Excuses Posted January 25, 2021 Author Share Posted January 25, 2021 Link to comment Share on other sites More sharing options...
Mooka Posted January 25, 2021 Share Posted January 25, 2021 Not really following... Why would anyone invest in a dying brick and mortar video game business when everything is now on online marketplaces? Even without a pandemic closing physical stores this model seemed dead. Or is that the entire point of how ludicrous this is? Link to comment Share on other sites More sharing options...
TradeTheBeal! Posted January 25, 2021 Share Posted January 25, 2021 This is hilarious. 1 Link to comment Share on other sites More sharing options...
No Excuses Posted January 25, 2021 Author Share Posted January 25, 2021 (edited) 13 minutes ago, Mooka said: Not really following... Why would anyone invest in a dying brick and mortar video game business when everything is now on online marketplaces? Even without a pandemic closing physical stores this model seemed dead. Or is that the entire point of how ludicrous this is? Yeah it’s all completely ludicrous. GameStop might have become so undervalued that it got shorted more than it should have. Millions of redditors are basically in a pissing match against hedge funds who short stocks. And the hedge funds aren’t doing too well in this fight. The live Reddit thread about this on r/Wall StreetBets is amazing. This is internet history, there will be congressional hearings about this and documentaries made. Edited January 25, 2021 by No Excuses 3 Link to comment Share on other sites More sharing options...
Llevron Posted January 25, 2021 Share Posted January 25, 2021 This is dumb lol 3 Link to comment Share on other sites More sharing options...
Momma There Goes That Man Posted January 25, 2021 Share Posted January 25, 2021 Also further proof that stock market is entirely detached from a company’s actual value and financial stability. ive read that sub often for the last several years, mostly for the hilarious memes. This story warms my heart 5 1 Link to comment Share on other sites More sharing options...
mammajamma Posted January 25, 2021 Share Posted January 25, 2021 (edited) 22 minutes ago, Mooka said: Not really following... Why would anyone invest in a dying brick and mortar video game business when everything is now on online marketplaces? Even without a pandemic closing physical stores this model seemed dead. Or is that the entire point of how ludicrous this is? they found out major hedge funds/financial institutions were shorting them (same with blackberry & AMC), so those redditors all bought those stocks at once to screw those institutions that were shorting them. and it worked... ha and yeah, people need to stop intertwining the economy with the stock market. this is 1 of a million reasons why Edited January 25, 2021 by mammajamma 2 Link to comment Share on other sites More sharing options...
GoCommiesGo Posted January 25, 2021 Share Posted January 25, 2021 Beyond the ridiculous beauty of the entire sub trying to shaft market, they have a deep belief that Cohen can turn it around like he did at Chewy. If you read some of their actual analysis (it’s hard to find but it’s there) it makes sense in a twisted way. The plan as described by Cohen could work but if nothing else, it’s a great spectacle. Link to comment Share on other sites More sharing options...
TheGoodBits Posted January 25, 2021 Share Posted January 25, 2021 1 hour ago, Momma There Goes That Man said: Also further proof that stock market is entirely detached from a company’s actual value and financial stability. I’ve been dumping gobs of money into my 401k lately but I’m concerned about a serious crash at some point. The speculation game is out of control with the easy access given to day traders, who are essentially just gambling. Too many of these red flags lately. Kodak, Signal, etc. Link to comment Share on other sites More sharing options...
mammajamma Posted January 25, 2021 Share Posted January 25, 2021 2 minutes ago, skinsfan_1215 said: I’ve been dumping gobs of money into my 401k lately but I’m concerned about a serious crash at some point. The speculation game is out of control with the easy access given to day traders, who are essentially just gambling. Too many of these red flags lately. Kodak, Signal, etc. i moved over to mostly bonds back in April (which was a mistake obviously), but have zero idea when to jump back in because of what you said. ive been waiting for the predicted crash since late December that hasnt come close to happening. the stock market makes zero sense right now. probably will give it another few weeks of this nonsense, then just go for it Link to comment Share on other sites More sharing options...
techboy Posted January 25, 2021 Share Posted January 25, 2021 3 minutes ago, mammajamma said: i moved over to mostly bonds back in April (which was a mistake obviously), but have zero idea when to jump back in because of what you said. ive been waiting for the predicted crash since late December that hasnt come close to happening. the stock market makes zero sense right now. probably will give it another few weeks of this nonsense, then just go for it Market timin' ain't easy. 1 1 Link to comment Share on other sites More sharing options...
Fergasun Posted January 25, 2021 Share Posted January 25, 2021 Waiting for a crash for years... this is not our father's or grandfather's stock market. I got screwed post 2009 trying to time a crash.... Link to comment Share on other sites More sharing options...
techboy Posted January 25, 2021 Share Posted January 25, 2021 7 minutes ago, Fergasun said: Waiting for a crash for years... this is not our father's or grandfather's stock market. I got screwed post 2009 trying to time a crash.... "Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves."-Peter Lynch 2 Link to comment Share on other sites More sharing options...
Corcaigh Posted January 25, 2021 Share Posted January 25, 2021 (edited) Of course, one day another big crash will come. Just like it did last March. Those who got out just before will claim to be geniuses but not knowing when to get back they might turn out to be worse off. And certainly worse off than those that rebalanced into equities at lower prices. Billionaire hedge fund manager Seth Klarman very recently published a dire warning about a global crash. But what does he actually know ... Stolen from a recent Bogleheads post .... Seth Klarman also published a "dire warning" about an imminent global crash in January 2019. The market is up 44% from his last warning. He also issued a warning about "perilously high" valuations in February 2017. The market is up 61% from then. His hedge fund only made 4.7% in 2020, a year when the S&P 500 went up 15%. Guess he's not very good at making predictions. Why do you care what he says? Edited January 25, 2021 by Corcaigh 2 Link to comment Share on other sites More sharing options...
Captain Wiggles Posted January 25, 2021 Share Posted January 25, 2021 9 minutes ago, Fergasun said: I got screwed post 2009 trying to time a crash.... Same. My investments were down I think 40% when I finally sold off the majority of stocks I had. Invested in commercial real estate and did far better. Tho who knows how that goes with the current pandemic. Hot market here in NC still atm. Link to comment Share on other sites More sharing options...
PleaseBlitz Posted January 25, 2021 Share Posted January 25, 2021 Hmmmmm, traditional market manipulators vs. a Reddit community of market manipulators. Can I just root for mass casualties on both sides? 1 1 8 Link to comment Share on other sites More sharing options...
Corcaigh Posted January 25, 2021 Share Posted January 25, 2021 (edited) If you are Investing for the long haul staying out of the market because of fear of bubbles will kill your return. If you are terrified of losing money more than you are excited to make money you should not be in the stock market. Here is the S&P 500 since the 50s. Over that time period there have been many times when pretty much all the experts were saying the market was overvalued and a crash was imminent, I.e. a bubble. Can you spot all the bubbles when only a "crazy person" was invested, and at what point in time should the smart money have exited and then known to get back in? Edited January 25, 2021 by Corcaigh 1 1 Link to comment Share on other sites More sharing options...
Corcaigh Posted January 25, 2021 Share Posted January 25, 2021 7 minutes ago, PleaseBlitz said: Hmmmmm, traditional market manipulators vs. a Reddit community of market manipulators. Can I just root for mass casualties on both sides? Hedge funds were down $812M on Thursday. Cheering against the shorters. Link to comment Share on other sites More sharing options...
Going Commando Posted January 25, 2021 Share Posted January 25, 2021 I think it's incredible. The way I understand it, obscure mechanics of trading and the incredibly fortuitous timing of Ryan Cohen being added to the board of GME resulted in a bunch of average joe degenerate gambler investors (retards, in their own vernacular) creating a super squeeze that's getting them rich at the expense of major institutional investors. I want to say good for them, but some terrible unintended consequence of the chaos of this situation will probably come back to screw us all over in the end. The ****posting and the memes created on that subreddit have been hilarious. I want to say it's all been worth it just for that. Link to comment Share on other sites More sharing options...
No Excuses Posted January 25, 2021 Author Share Posted January 25, 2021 (edited) 1 hour ago, PleaseBlitz said: Hmmmmm, traditional market manipulators vs. a Reddit community of market manipulators. Can I just root for mass casualties on both sides? Nah **** the hedge funds on this one. I’m with the, as they generously call themselves, autists and retards. Edited January 25, 2021 by No Excuses Link to comment Share on other sites More sharing options...
Warhead36 Posted January 25, 2021 Share Posted January 25, 2021 I'm glad I just stick to my index funds lolol Link to comment Share on other sites More sharing options...
DCSaints_fan Posted January 25, 2021 Share Posted January 25, 2021 Ironic as hell considering how much hate GameStop got on Reddit over the years 2 Link to comment Share on other sites More sharing options...
mammajamma Posted January 26, 2021 Share Posted January 26, 2021 3 hours ago, Corcaigh said: If you are Investing for the long haul staying out of the market because of fear of bubbles will kill your return. If you are terrified of losing money more than you are excited to make money you should not be in the stock market. Here is the S&P 500 since the 50s. Over that time period there have been many times when pretty much all the experts were saying the market was overvalued and a crash was imminent, I.e. a bubble. Can you spot all the bubbles when only a "crazy person" was invested, and at what point in time should the smart money have exited and then known to get back in? you're not wrong, but this past year was unprecedented in the last 100 years. so even though i admit now that it was a mistake to pull out of stocks, i dont blame anyone else that did. it was a once in a lifetime pandemic, the economy was shutting down, and the dow was dropping by like 1500 or more a day. nobody knew what the hell was going to happen and yes, i shouldve jumped back in much sooner, but now that every expert is predicting a correction any day now, it makes more sense in the long run to lose a couple more weeks of slightly higher returns if i can jump back in after the correction Link to comment Share on other sites More sharing options...
Corcaigh Posted January 26, 2021 Share Posted January 26, 2021 Or you might fall further behind. Nobody knows and the greatest risk is missing out. Link to comment Share on other sites More sharing options...
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