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GameStop stock falls sharply amid 5M-share sales plan, SEC investigation:
GameStop's quarterly earnings report, released last night, contained relatively good news for the embattled retailer, including a smaller-than-expected operating loss and the company's first year-over-year increase in quarterly revenues in years. But GameStop's heavily inflated stock price is down significantly in morning trading on news that the company plans to sell more shares and the announcement that it is cooperating with a Securities and Exchange Commission investigation into the "meme stock" phenomenon.
In what CEO George Sherman called a "strong start to the year," GameStop's net sales were up over 25 percent to $1.3 billion in the fiscal quarter ending on April 30. That's despite "a roughly 12 percent reduction in the global store fleet due to our strategic de-densification efforts and the continued store closures in Europe during the quarter due to the COVID-19 pandemic."
Previously:
GameStop (The Stock) and GameStop (The Retailer) Continue to be Worlds Apart
GameStop Shares Rise, Fall and Rise Again in Roller-Coaster Day of Trading
The Complete Moron's Guide to GameStop's Stock Roller Coaster
(Score: 0) by Anonymous Coward on Friday June 11 2021, @04:42PM
To be clear, I have no skin in the game. I do not have any shares in it, nor shorts, nor anything else.
I'm curious as to the reasoning here. Is it more likely that:
1) There is a vast conspiracy between "hedge funds," all of which have a financial incentive to cheat the others to earn money for themselves (see: Prisoner's Dilemma), to engage in wide-scale market manipulation of GME? Keep in mind that mass market manipulation is literally illegal, and this is a single stock which has already proven itself to be exceeding volatile, and at least some hedge funds HAVE publicly divested themselves of GME.
2) There is "something else" going on, such as the systemic manipulation of retail investors to prop up share prices in a "pump and dump" style confidence job.
I really don't know, but I am hesitant any time somebody claims that things are the way they are because of a secret cabal engaging in a wide conspiracy. Of course, sometimes it is true, and there is a vast conspiracy going on (see: Pentagon papers, Chelsea Manning, Edward Snowden). Much more often, though, it is just desperate denial of reality (see: moon-landing hoaxer, flat-earthers, anti-vaxers, and some other modern things I won't mention because "time will tell").
It's just like whenever somebody says "this time is different." Yes, occasionally things are different... but far more often they are the same and the bubble is about to pop.