Does Gamestop have a future?

They are probably happy today, if they still own it.

https://www.bloomberg.com/news/articles/2021-01-22/gamestop-tug-of-war-gives-reddit-army-a-win-on-record-volatility

There’s going to be some really interesting EMH research coming out of all these bizarre Robinhood stock surges.

Some of these idiots lost a lot of money.

Gamestop

Its going back up today.

Matt Levine is always a fun read on stuff like this:

Gah ignore me, I can’t read charts. :P

There’s going to be a lot of bag holders when this is all over, but man I’m sure some people are making some crazy money.

As if we needed any more proof that the stock market is all made up, high stakes gambling that shouldn’t be used to determine the health of the economy.

Just catching up on this. Every time I read about some massive gain, like Bitcoin or something, I always wonder what the next one will look like. Kind of funny.

This one seems like it will have the saddest ending though. The autists think they’re fighting hedge funds, but aren’t they relying on mass popularity to blow the bubble?

1-27-2021 12-43-18 AM

I feel like I’ve watched this movie

368 and still climbing.

Apparently it only needs to stay up until Friday when one of the hedge funds who are in the hole has their put and they have to buy the shares…

Imagine having bought a few hundred shares back when the 52 week low was $2.57

A playstation’s worth would be worth 74k right now.

One thing I read during all of this is that Toys R Us was run out of business by the hedge
funds/people these guys are nailing with this stock buy. TRU was apparently profitable before they shorted it to death and then lumped all their debt onto the company.

If this can put a stop to that kind of thing? I’m all for it. TRU stores were great places for kids and for parents to take their kids and there’s nothing like it anywhere anymore and that sucks.

People don’t seem to name the firm names… Fishy rumormongering.

Bloomberg here names Melvin Capital. I don’t see them mentioned in any Toys R Us articles.

No different than imagining having bought a winning lottery ticket, really.

My brother bought $500 worth when it was $4 back last February. He sold out at $150

I hope he enjoys his new entry-level trim crossover SUV!

You’re conflating two things there. Some hedge funds (and probably other investors) were shorting Toys R Us, because it was a doomed company. Part of the reason that it was a doomed company was because other investors (private equity rather than hedge funds per se, though the differences don’t matter all that much) bought the company and loaded it with debt. These investors were not the same people as the shorters, and their interests were diametrically opposed. As it turns out, the shorters were right and the private equity people were wrong and destroyed the company. I have to say I think it probably wouldn’t have survived anyway, it’s exactly the sort of business that Amazon and online retail in general have driven out of business, but the debt certainly didn’t help.