Does Gamestop have a future?

AMC did basically the same thing. If you’re going to be a meme stock, might as well milk the meme lords.

Keith Gill posted on Reddit last night his massive position in GameStop. Stock moons in pre-market.

Looks like a fun week!

Isn’t this essentially market manipulation at this point?

  1. Buy a bunch of stock
  2. Post a picture of your holdings to idiots on reddit
  3. Wait for them to drive the price up
  4. Sell your stock at a profit

It seems like an obvious pump and dump scheme.

You need to trust this man, he knows what is going on. :rocket: :rocket: :rocket: :gem: :gem: :gem: :raised_hands: :raised_hands: :raised_hands:

Assuming his disclosed position is real, I don’t see why. Talking up your position is legal. I don’t see what is different here than some hedge fund guy going on CNN to talk up the stocks he’s invested in.

No, see his shirt has a cat and some F-15s (I think? can’t quite tell) – if it had been a pig and some A-10s, I’d be all-in.

All completely legal, because the stock market is broken and has separated stock price from actual value to a gamified gambling system.

Fuck, reddit calls it r/wallstreetbets for a reason.

I guess you’re right, in that for a pump and dump scheme to be illegal, I suppose it needs to actually involve making fraudulent statements about the stock.

This still seems like it’s designed to take advantage of suckers though.

…selling funkos

The most honest forum on all of Reddit.

Roaring Kitty/DeepFuckingValue/Keith Gill bet TWO HUNDRED MILLION on GME’s June earnings. He must know something.

How to manipulate the extremely gullible?

I mean…

He knows that if he throws a ton of money into GME, a bunch of people on reddit will too, and they are insane HODL people, so he can easily recoup that investment in the next few months.

It is terrible, but it is also genius. Literally any reddit approved celebrity can do this, just nobody has been that shameless.

Also if he “knows something” about the June earnings. This is insider trading.

I think he knows that a fool’s and his money are easily parted, and that if he posts pictures on reddit people will invest in a stock he tells them about, and then he will make money.

I mean, let’s be real here… there’s no legitimate reason for gamestop’s stock to risk, beyond its existence as a purely speculative commodity. The actual BUSINESS of Gamestop is a deadend. No one is investing in their stock because they think the brick and mortar retail model is the future of videogames. They are investing on the basis of “line go up.”

Also, the reality is that this idea of his huge investment is based upon a picture. That is trivially fabricated. Of course, if it’s fake, than it’s literally an illegal pump and dump scheme.

He literally has calls that expire June 21, a week after earnings. If GME doesn’t pump he’s going to lose a shitload of money.

Hence posting a picture on reddit.

Yup. And it’s not illegal. Maybe you should have voted for Bernie and his ilk if you wanted it to change?

But it is going to pump, because reddit will buy loads of stock regardless of the risks.

I don’t think any presidential candidate could make any sort of change that would prevent this. The stock market is literally built as a popularity contest. If you can get a bunch of people to think a stock is popular, it blows up. It was specifically severed from actual real world company valuation on purpose.

What he is doing is risky, certainly, but probably a very safe bet, because nobody is going to want to try and push back against the GME activist investors, and all the smart firms will jump in on the way up and make a ton of money for clients.

The only way this could ever change would be to strengthen requirements or make it more difficult for citizens to purchase individual stocks. And that will never happen, because there is absolutely way too much money to be made this way.

So, we have the side effects of social media people directing large swathes of investors at whatever stock they want to inflate the value, and then sell off when they have made a profit. The market is built to allow this specifically.

Why insider trade when you can just trust that a huge group of people will follow your lead with money?

The way you stop this is to regulate away the conditions that lead to this in the first place. Naked shorting, synthetic shares, whatever it is. Stop letting these hedge funds short companies into oblivion, or accept that meme stocks are a thing that’s going to happen and the stock markets are going to be casinos.

We’re clearly heading in the casino direction as they’re talking about more 0DTEs and even intra-day expirations for options, as well as 24/7 trading. The only people that win when that happens are market makers scalping the bid/ask and brokers collecting fees. It’s not in the interest of regular people. They want Robinhood to be DraftKings.

Well, naked shorting is illegal, and has been since the financial crisis.

I think that short selling is something that I don’t really like, but I understand why it should exist. The ability to bet against a company that you think is not being run very well feels like a viable strategy. There should be some push/pull in the market. (Bears gotta eat too)

Shorting is also incredibly risky as the loss potential is infinite. I also think that shorting is being used by large hedge funds in a bad way in many cases squeezing the life out of some businesses that don’t really deserve it. The stock market and values generally just go up, so shorting is betting against history itself.

But, in the stock market in 2023, short sellers lost 195$ Billion by year end. It is an incredibly risky thing to do, and I think that while the redditors might pat themselves on the back for squeezing that GME short in 2021, it isn’t like these short selling hedge funds have been covering themselves in glory all that often anyway.