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The Complete Moron’s Guide to GameStop’s Stock Roller Coaster
The Complete Moron’s Guide to GameStop’s Stock Roller Coaster:
Last week, an epic short squeeze had driven GameStop stock up to $40 a share, a roughly 1,500 percent increase from its low point nine months ago. Little did anyone know at the time that this would only be the beginning of the story.
As I write this, GameStop's stock price is hovering around $350, up another 775 percent or so since I wrote about this situation eight days ago. By the time you read this, that number may be horribly outdated, as the stock continues to bounce up and down with extreme volatility hour by hour (it dipped down as low as $61 and peaked as high as $159 on Friday).
The current stock price now gives the company a market cap of about $26 billion.
On the surface, that means the market currently thinks GameStop is worth more than twice as much now (during a potentially existential threat to brick and mortar game sales) as it was during the height of the Wii boom in late 2007, when console game downloads were barely a thing.
Also at: Business Insider.
Melvin Capital, Hedge Fund Targeted by Reddit Board, Closes out of GameStop Short Position
Melvin Capital, hedge fund targeted by Reddit board, closes out of GameStop short position:
Melvin Capital closed out its short position in GameStop on Tuesday afternoon after taking a huge loss, the hedge fund's manager told CNBC's Andrew Ross Sorkin.
GameStop, hedge funds' most-hated stock, was targeted by an army of retail investors who marshaled forces against short sellers in online chat rooms. In the Reddit forum "wallstreetbets" with more than 2 million subscribers, rookie investors encouraged each other to pile into GameStop's shares and call options, creating massive short squeezes in the stock.
CNBC could not confirm the amount of losses Melvin Capital took on the short position. Citadel and Point72 have infused close to $3 billion into Gabe Plotkin's hedge fund to shore up its finances. On Wednesday's "Squawk Box," Sorkin said Plotkin told him that speculation about a bankruptcy filing is false.
GameStop shares have soared more than 400% this week alone to $347.51 apiece, driving its January gains to 685%. The stock was worth just $6 four months ago.
Reddit's WallStreetBets is locked as AMC, GameStop stocks fall after-hours
For the past week, Reddit's WallStreetBets community has been the center of an epic war between large Wall Street investors and small scale social media betters. Now, it's been locked, and spooked investors appear to be dumping their shares.
Shares of GameStop and AMC dropped dramatically in after-hours trading shortly after Reddit's community was made only viewable through an invite.
See also: Reddit traders cause Wall Street havoc by buying GameStop
GameStop and Elon Musk send Reddit and Robinhood to the top of the App Store charts
'Dumb Money' Is on GameStop, and It's Beating Wall Street at Its Own Game (archive)
(Score: 0) by Anonymous Coward on Thursday January 28 2021, @05:45AM (3 children)
Careful what you wish for.
The losers here are almost certainly not regular DNC members. Chances are this will an opportunity to set an example. A warning tale for rich entitled fucks that think they're bigger than the rules. Who may occasionally try to incite free tours of Nancy Pelosi's office. It's time for some bitches to feel the unity with their poor brethren.
(Score: 0) by Anonymous Coward on Thursday January 28 2021, @06:07AM (2 children)
Why do you think I wouldn't want to see this? This tribalism is particularly what I'm trying to get people, themselves, to see.
I completely agree with you that the losers here are obviously not normal DNC members. They're something much more relevant: they're the people who are and who control the DNC, as well as the GOP. The DNC, if they're to keep to their rhetoric, should be cheering this event on. Not only did a whole bunch of middle class types just make a ton of money off of Wallstreet greed, but it's ultimately the story of the little man taking on the bourgeois, playing by the rigged rules that the latter created, and winning - big time.
I simply do not think they will keep to their rhetoric. And most times here we can only speak of vague things like 'what do you think will happen over the next 2 years'. But in this case it's something right in your face. You now have millions of little guys winning at the cost of a handful of Wallstreet billionaires. What will happen in this specific situation over the next weeks? If they do anything, the masks are going to come off. And you're not going to like what you see.
(Score: 3, Informative) by c0lo on Thursday January 28 2021, @06:45AM
Some notable of them are [twitter.com]
https://www.youtube.com/watch?v=aoFiw2jMy-0 https://soylentnews.org/~MichaelDavidCrawford
(Score: 0) by Anonymous Coward on Thursday January 28 2021, @04:06PM
Now that Trump has been ousted, the masks can indeed come off.