Gamestop, Wall Street and Reddit.

[Greasy]

A few people will get rich off this. Most will lose their ass though. Always entertaining to watch. When a useless stock like this is boosted in this way, once the selling starts, the only ones buying are idiots thinking, "It's my turn to get in!!!! OMG OMG", or the shorts saying, "yes come back to me my pretty $$". Hi, I'm from the 90s.

[bob saget]

can someone explain how the redditors make money out of all of this? the stock goes up and they just sell?


if thats all it takes, then whats stopping thousands of people from doing just this, all the time, with any stock that's on a downward trend.

[Trunks0]

can someone explain how the redditors make money out of all of this? the stock goes up and they just sell?

Yes, more or less. They just sell once the Hedge Fund trying to kill Game-Stop is la ****ed. Result is GameStop survives.

if thats all it takes, then whats stopping thousands of people from doing just this, all the time, with any stock that's on a downward trend.

Nothing and they do.

[Trunks0]

can someone explain how the redditors make money out of all of this? the stock goes up and they just sell?

Yes, more or less. They just sell once the Hedge Fund trying to kill Game-Stop is la ****ed. Result is GameStop survives.

if thats all it takes, then whats stopping thousands of people from doing just this, all the time, with any stock that's on a downward trend.

Nothing and they do. That's the most basic method of how people make money with stocks. There are other reasons of course, but the simplest method is buy low and sell high.

[bob saget]

Yes, more or less. They just sell once the Hedge Fund trying to kill Game-Stop is la ****ed. Result is GameStop survives.

I didn't see anywhere that the fund was trying to kill gamestop. i just read that gamestop was spiraling downwards due to more platforms like steam selling games and the pandemic... i didnt realize the hedge funds were actively trying to kill gamestop (although obviously they would make a fortune if it died)

[Trunks0]

It probably would kill them. It wasn't really their goal, but the effect probably would have taken them out.

[Nunz]

All of this has led to me reading more about the stock market and trading than ever before. I don't like investing in the stock market because it's literally legal gambling, and I think real estate is a better application for my money (something tangible) but hot damn, **** those hedge fund **********s!! I kinda want to participate and drop a couple grand in just to be a part of sticking it to a bunch of douchebags

[Jay20016]

can someone explain how the redditors make money out of all of this? the stock goes up and they just sell?


if thats all it takes, then whats stopping thousands of people from doing just this, all the time, with any stock that's on a downward trend.

The hedge funds grossly shorted the stock. They were up to about 140% on January 15th, and supposedly doubled down on it earlier this week so it could be higher. Either way, there are short options that they are holding that mean at sometime, they're going to have to buy shares to cover their short. With then needing to buy more shares than currently available mean if people hold their shares and deny them the ability to fulfill their agreements the law of supply and demand will kick in. Those holding the shares can set the price to what ever they want, if they hold.

What we saw yesterday was an effort to use their influence to deny the ability of day traders to be able to pick up shares that the hedge funds had. They were doing a technique called laddering, where they sell (and buy) between themselves small increments of stock. When sale volume looks like it is increasing the stock price tends to drop. They orchestrate this move to keep dropping small packages over and over again at ever decreasing prices to trick the downward trend. When day traders see that their shares are dropping, they may panic and sell their own, further tanking the stock. Only, it didn't work yesterday, well at least as well as the funds wanted. Some people did get out as it plummeted. Some invested early when it was only $10 to $20 (or less) a share, so even then, it was a profit for them, which is what the hedge funds are counting on. They're trying to use the fact that these retail traders often are more nervous than the big guys because a loss can mean not paying rent or having food. They're also counting on a greed like theirs. At the lowest point yesterday, some of the early investor from Reddit still had made transformative gains. To the average person like you or I, a $5k, 10k, 100k sale is life-changing. Their laddering yesterday was meant to convince these peeps to jump off the rocket ship with a gain, but not the gain that it could be. There are some shares that people sold yesterday in the midst of the madness that were in the $5k per share range. The continued suspension and starts is to stop this from happening.

Those who got these partial sales at $5k could be outliers and glitches or it could be the proof that shows the automated trades trying to find any share to cover their agreement and proving the due diligence that was done for why people piled into holding their shares.

When the hedge funds start to fulfill the agreement they're going to need to purchase shares which well cause the price to rise even more.

This is a once in a lifetime thing, not normally how the market is run. They nakedly shorted and put themselves standing in the cold with their dicks in their hand because of greed. They piled into a stock, that just happened to be GameStop. When some traders caught wind of this, they happened to pile into owning shares. The hedge funds are mad that they got caught and have ( and continue) to lose billions for their greed. Yesterday, and more than likely today as well will show the lengths the system will go to protect the status quo. There is real fear on what the collapse of some these hedges would do to the market as a whole because someone has to honor the agreement if the fund cannot; what could that do to their holdings elsewhere or those intuitions and brokers who allowed the shorts in the first place, who are now responsible for them.

Wall Street is attempting to blame individuals like you or I for seeing their greed and calling them on it. They're running a campaign on CNBC and print media to try and make it seem like Reddit is to blame for the mess, and not their naked greed.

The fact that this is eerily akin to what tanked the economy in 2008 is not lost on most people. Like then, the status quo of Wall Street wants to protect its own regardless of the damage they're doing. There is also the fact that people are sticking through it to stick it to the people who in 08 and this pandemic made money while others suffered. I hesitate to call it a movement, but there is definitely vibes of eat the rich to it.

I could keep on going considering I haven't even touched upon the idea that Robin Hood, the app these retail traders use, gives it data to Citadel, a fund who stands to lose billions, so that they are always one step ahead of them. The uproar yesterday is because this seemed like collusion aimed at protecting Citadel at the expense of the retell traders. Robin Hood passes along info to Citadel to know what autosell positions peeps have set. There were also those trading on margin that had all of their options auto sold at the absolute lowest valley, to the benefit of citadel and other funds.... But as a means to "protect" the user.

It's complicated and not complicated at the same time.

Oh, and now members of Congress are looking into it, so yay!

[Nunz]

I hope this pushes people away from using Robinhood. If anything the app/owners should seriously be investigated. I'm also curious how it's legal for them to give retail traders information/positions; isn't that a form of insider trading, considering Citadel now has information on the market?

I truly hate the entire idea of the stock market and these businesses that have made billions (trillions?) off of the average Joe while we drown.

[Silent-Runner]

[Jay20016]

I hope this pushes people away from using Robinhood. If anything the app/owners should seriously be investigated. I'm also curious how it's legal for them to give retail traders information/positions; isn't that a form of insider trading, considering Citadel now has information on the market?

I truly hate the entire idea of the stock market and these businesses that have made billions (trillions?) off of the average Joe while we drown.

Well, they're now limiting each user to a total of 5 shares of GameStop, 115 of AMC, 110 of Nokia, and others for the 13 companies they limited yesterday. They're trying to limit retail from scooping up their small volume trades today...

Thankfully, my fidelity account went through so I'll be buying some dips.

[AllexxisF1]

The real fear for Wall Street is now they're being watched. You try to short-sell a stock to destroy a company, they're gonna squeeze and bury you.

Think about how many slimeballs make a living doing that.

[Jkmetal23]

How is the world without Toys R Us? We can thank leveraged buyouts via corporate raiding for that. My nephew will never know what the lead up to Christmas was like for my brother and I when we would wander the Isles for hours finding what we wanted when we were his age.. Some suit (Bain capital) decided to buy them, saddle them with debt, and extract whatever wealth they could. This is their modus operandi. They don't care about you or I our who they hurt, the numbers and profit are all that matter, even when miniscule compared to the ripple effects.

They're shorting the GameStop stock because it is low hanging fruit, it was easy money for them. It was in such a situation that it couldn't even fight back if they wanted to, especially with covid shut downs wrecking things. But, these people on the first days of the realization back in match what was coming were hat in hand to the government to the tune of $4 trillion dollars. They got bailed out immediately while the rest of us were left to wither. The market has jumped higher than it ever was despite millions unemployed and unsure if where their next meal would come from, and these assholes want to talk about untethered from reality? Give me a ****ing break.

I had nearly the same thought. Toys R Us needed to change but there was a path for survival in some form. I feel the same path is open to gamestop, especially if they take lessons from some of the independent games stores I've been too.



The 'masters of the universe' draw so much ire because they make decisions completely divorced from things like community, human welfare, culture etc....



Market is also very clearly divorced from the economy at this point and its depressing to realize that there are many not so hidden bubbles ready to burst for us to take the fall on.



Yes, people are greedy. Hell, if I worked in wallstreet as a broker or an investor, I'd take one look at all of the activity on various message boards and say 'I'm just more honest about what I'm doing'. This is of course ignoring the desperation that many feel, especially these days, pushing them to these ends. To me, it feels a bit scummy and I'm a little thankful that I'm not in a position where I have money to play with. But, whatever greed or opportunism shown by individual investors is dwarfed by the breathe and depth of depraved greed by the big boys.



Give 'em a black ****ing eye everyone!

[koralis]

I had nearly the same thought. Toys R Us needed to change but there was a path for survival in some form. I feel the same path is open to gamestop, especially if they take lessons from some of the independent games stores I've been too.
!

Was there? Amazon has killed both of these companies. The only thing going for either is that :

1) You can get something today, instead of tomorrow (literally)
2) You can pick something up, try something out, etc, before you buy


1 -> most people can afford to wait one day for something if they get to save 20%.

2 -> People can go into these stores, get a feel for the product, then order the exact same product on Amazon for the discount.

Infrastructure costs are unjustifiably high when you're basically just serving as advertising for an online retailer.



For Gamestop specifically, with the major consoles offering software downloads as the way of the future, it has a limited lifespan which is why the stock was able to be manipulated with shorts in the first place... it's obvious that the company is ultimately doomed. Maybe not for a few years, but it's going to be gone just like any/all other department stores.

The only "way out" is to be an online distributor, competing against Amazon, which will ultimately not be successful. As costs are lower online they may still "survive" but as a fraction of what they were previously.

Well, there's another way out, but it won't happen. Gamestop would have to convince Microsoft/Sony to only allow distribution through actual storefronts so that Gamestop becomes an essential part of the gaming ecosystem like it used to be.


Any boutique store survives based on value-add. A game or comic book store will host game nights to bring people together and foster a sense of community, where people develop a loyalty to Mom and Pop and the people they interact with regularly. A nationwide chain isn't really going to be able to do anything like that successfully. It's just not part of the DNA.

[Jay20016]

lol, not even 5 minutes before a suspend

[KAC]

They should troll Boeing.

[Jkmetal23]

Was there? Amazon has killed both of these companies. The only thing going for either is that :

1) You can get something today, instead of tomorrow (literally)
2) You can pick something up, try something out, etc, before you buy


1 -> most people can afford to wait one day for something if they get to save 20%.

2 -> People can go into these stores, get a feel for the product, then order the exact same product on Amazon for the discount.

Infrastructure costs are unjustifiably high when you're basically just serving as advertising for an online retailer.



For Gamestop specifically, with the major consoles offering software downloads as the way of the future, it has a limited lifespan which is why the stock was able to be manipulated with shorts in the first place... it's obvious that the company is ultimately doomed. Maybe not for a few years, but it's going to be gone just like any/all other department stores.

The only "way out" is to be an online distributor, competing against Amazon, which will ultimately not be successful. As costs are lower online they may still "survive" but as a fraction of what they were previously.

Well, there's another way out, but it won't happen. Gamestop would have to convince Microsoft/Sony to only allow distribution through actual storefronts so that Gamestop becomes an essential part of the gaming ecosystem.


Any boutique store survives based on value-add. A game or comic book store will host game nights to bring people together and foster a sense of community, where people develop a loyalty to Mom and Pop and the people they interact with regularly. A nationwide chain isn't really going to be able to do anything like that successfully. It's just not part of the DNA.

Gamestop demoed new stores that would do exactly the bolded.



Also, there are a comical number of gamestops. Really, just way too many stores. Instead of 5,000 stores, there could be half that. Also, a new investor had just joined the board, with the goal of moving the company to a more successful e Commerce arm, not to mention microsofts investment.



I like the sound of that getting a shot rather than cheering on short sellers who "expose weak companies". Destruction is easy.




Frankly, I'm not looking forward to a world where Amazon owns everything. Maybe you have money invested in them, IDK. To me, Amazon can go fuk themselves and Bezos should be investigated personally.

[Jay20016]

Gamestop demoed new stores that would do exactly the bolded.



Also, there are a comical number of gamestops. Really, just way too many stores. Instead of 5,000 stores, there could be half that. Also, a new investor had just joined the board, with the goal of moving the company to a more successful e Commerce arm, not to mention microsofts investment.



Frankly, I'm not looking forward to a world where Amazon owns everything. Maybe you have money invested in them, IDK. To me, Amazon can go fuk themselves and Bezos should be investigated personally.

They finished a few of them just before COVID; so they're trying, its just.. well, hard to build a community atmosphere when you're limited to 3 people in your shop.

And for the Amazon owning everything bit; the funny thing is that people don't connect the realities of things together. We all want better, faster, cheaper and simultaneously say decry that American manufacturing has been cratered to a point of irrelevancy. Well, what do you want, the good paying job that will mean you pay more than $5 for a toaster at Wal-Mart or Amazon, or do you want a $5 toaster?

[koralis]

Frankly, I'm not looking forward to a world where Amazon owns everything. Maybe you have money invested in them, IDK. To me, Amazon can go fuk themselves and Bezos should be investigated personally.

Don't get me wrong, I loath Amazon for the damage they've done to the country. I just don't see how you escape the eventuality, barring government intervention restricting their reach and breaking them up into something that won't smash everything in their way. As the courts have determined that breaking up companies is pretty much a thing of the past (ie. if amazon provides lower prices to the consumer, then they're good) that's not happening.

Whether any of my mutual funds have a stake in Amazon, Gamestop, or anything else I have no idea. Probably. I don't micromanage my stocks anymore.

[KAC]

I have little understanding of the job market but Amazon did add more jobs in 2020 than anyone else. Whether they were high paying or not but they did add jobs. I think if you survived 2020 with a job intact then you had a good year.

[Jay20016]

I'm thankful that I've been off the last two days to watch this all unfold, I feel like seeing how the order book works helps just illustrate what these guys are doing when laddering. There are a lot of 100, 200 share dips coming up, going to go under $300 soon.... hold the line.

[Vanz_007]

some questions about this:

• wouldn't it make sense to short sell the GameSpot stock for a long time period like 5 years? stock will most certainly level out in less than a year
• why are people referring to robinhood, other than fuking over the rich, is that a fund name too?
• this is all coming from reddit chats, can someone link them here, did quick search and found some stuff but doesn't look like the latest
  

wonder if they'll make this into a movie some day, some pretty funny sh!t happening right now...

[Vanz_007]

nvm about robinhood, I see its a phone app...

[Vanz_007]

https://www.cnn.com/2021/01/29/inves...ure/index.html

man, the more I read about this the more I think some people are going to get royally screwed. if people buy in now, which it looks like they are, they risk losing 90%+... on the other hand some are making millions... in the above article, a dude investing his student loan *cringe*

[koralis]

some questions about this:

• wouldn't it make sense to short sell the GameSpot stock for a long time period like 5 years? stock will most certainly level out in less than a year

The longer an option is, the less profitable it is. As you say, over a long time period the result is somewhat more predictable, which means it's not really a gamble. If it's a near sure-thing, there isn't much of a premium to it... you're just spending money to make almost nothing (if you could find someone to sell the option in the first place.)

[Jay20016]

https://www.cnn.com/2021/01/29/inves...ure/index.html

man, the more I read about this the more I think some people are going to get royally screwed. if people buy in now, which it looks like they are, they risk losing 90%+... on the other hand some are making millions... in the above article, a dude investing his student loan *cringe*

Are there people that are in full FOMO mode? Yes. The reason that this seems to be something that people see as more than just some small chance of success is because the situation was perfect for people to buy in and hold their shares due to Wall Street's excesses.

As for riding it out for years, there are time frames on the short sells to an extent, they owe the stock back and have options for when they can do that, but in order to make it so that someone can just "owe" you your stock indefinitely, the lender gets a fee off of the top every day that it is not returned, most that accrue exponentially, meaning the longer they wait, they longer they need to pay for their loan of a share. It then just becomes a thing of time and money they have to be able to burn through.

THere is a lot of talk about today being the squeeze, but it could be today, monday, or friday next week, it is whenever the Hedge Funds have to buy because they cannot afford to wait any longer.

That there are more shorts out than available stock mean, that every one holding onto their stock makes it harder for the hedge funds to complete this and thus the price rises to a near infinite amount.

But yes, people need to know that there is risk. With what happened yesterday, I wouldn't be surprised if there were "issues" at the stock's peak and for days after....

[Jkmetal23]

They finished a few of them just before COVID; so they're trying, its just.. well, hard to build a community atmosphere when you're limited to 3 people in your shop.

And for the Amazon owning everything bit; the funny thing is that people don't connect the realities of things together. We all want better, faster, cheaper and simultaneously say decry that American manufacturing has been cratered to a point of irrelevancy. Well, what do you want, the good paying job that will mean you pay more than $5 for a toaster at Wal-Mart or Amazon, or do you want a $5 toaster?

It isn't the cost of toasters that is squeezing all of us.
Also, it isn't that Amazon is an online retailer, its the size. Something like 50% of all retail online goes through amazon.

Don't get me wrong, I loath Amazon for the damage they've done to the country. I just don't see how you escape the eventuality, barring government intervention restricting their reach and breaking them up into something that won't smash everything in their way. As the courts have determined that breaking up companies is pretty much a thing of the past (ie. if amazon provides lower prices to the consumer, then they're good) that's not happening.

Whether any of my mutual funds have a stake in Amazon, Gamestop, or anything else I have no idea. Probably. I don't micromanage my stocks anymore.

We'll need to find will to do it. Not to get into P&R but people are starting to wake up about amazon.

I have little understanding of the job market but Amazon did add more jobs in 2020 than anyone else. Whether they were high paying or not but they did add jobs. I think if you survived 2020 with a job intact then you had a good year.

It isn't just about jobs, I've been against amazon for years now. You probably missed the display of every municipality in the US bending at the knee for amazons 'second headquarters' dog and pony show. And thats just the start.



All of this is off topic though.

[Jimby]

This thread has been a pleasure to read.

[somewon]

Thanks for sharing this.
Question though, what's in it for the broker lending the shares of stock to the borrower? Is there some commission involved?

[Hapatingjaky]

Thanks for sharing this.
Question though, what's in it for the broker lending the shares of stock to the borrower? Is there some commission involved?

They get interest paid out on the loan. So when the stock goes up up up the longer the borrower waits to buy it back the more interest is paid to the original holder. They eventually have to give it back to the borrower with the interest on top the longer they hold on too it.

[0091/2]

https://www.cnn.com/2021/01/29/inves...ure/index.html

man, the more I read about this the more I think some people are going to get royally screwed. if people buy in now, which it looks like they are, they risk losing 90%+... on the other hand some are making millions... in the above article, a dude investing his student loan *cringe*

I understand stocks but that sounds pretty stupid to do. I wouldn't dump more than $600 on it. If I'm gonna buy a share I don't do it to make money but just to grow the hedge fund's **** up bigger. It's not every day you get to make billionaires lose their ****.

THe man who started it.
https://www.wsj.com/articles/keith-g...al-11611931696

[Vanz_007]

The longer an option is, the less profitable it is. As you say, over a long time period the result is somewhat more predictable, which means it's not really a gamble. If it's a near sure-thing, there isn't much of a premium to it... you're just spending money to make almost nothing (if you could find someone to sell the option in the first place.)

hmm, what is the break down approximately, what about 1 week or 1 month or 1 year... is there a link for this break down or is it case by case?

I thought for short selling if you promise to buy it back at a later date you pay that amount and make or lose the amount per what you paid, so how does it become less profitable over time?

[Jay20016]

Honestly, the memes of this are worth more than the stock value at this point.

[Jay20016]

hmm, what is the break down approximately, what about 1 week or 1 month or 1 year... is there a link for this break down or is it case by case?

I thought for short selling if you promise to buy it back at a later date you pay that amount and make or lose the amount per what you paid, so how does it become less profitable over time?

It is a loan, you pay interest on a loan.

[Vanz_007]

It is a loan, you pay interest on a loan.

thanks.

[Vanz_007]

Honestly, the memes of this are worth more than the stock value at this point.

share some? I've seen a view, but meh...

[bill dennison]

[bill dennison]

Google Works To Restore Robinhood's Reputation As Angry Reviewers Bombard Play Store

The Robinhood app was blasted with nearly 100,000 negative reviews on Thursday. The total number of reviewers stood at over 274,000 at the time. The app’s rating fell down to one star due to the review bombing, while the app previously enjoyed a four-star rating, 9to5Google reported.

The rating has since gone back up to four stars after enough reviews were deleted by Google. As of press time, the App was rated by 177,501 reviewers.

https://au.finance.yahoo.com/news/go...073900580.html



**** Google also

Robinhood killed themselves when the stopped people from buying to save the fat cats

[bill dennison]

[Vanz_007]

okay, that ones pretty good... ...