Some people on my hockey board tapped into it early and I've been half paying attention to them. By a stroke of bad luck I sold all my stock the first week of January and moved the cash into paying off some consumer debt to boost my credit score for some moves I'm making later in the year. Otherwise I would've been in with them and likely made of a year's salary in a few days. Oh well.
Gamestop was on the verge of bankruptcy (was losing money before the pandemic) so there were a lot of short sellers.
The Chewy (major pet supplier in the US) co-founder go involved last year and the rally started.
I get that there can be a short squeeze, but now it's trading at like 5x it's all-time high (before there were digital games on console and they were making good money on used games). Basically Reddit screwed the short-sellers (good on them) but looks like they're going to screw the little people that fueled this rally.
Should be fun to see what kind of regulations will be proposed, if any.
Oh it will, they won't let the peasants have nice things.
acket.
Hopefully there will be a transaction tax that we get out of it.Originally Posted by balki
I read that institutional short sellers are the ones that are hardest hit by this. They'd counted on GameStop stock falling and then picking it up dirt cheap but the redditors fucked their plan over. And they're not happy about that.
To which I say <sad trombone>
Right?
Republicans in Washington warn Wall Street: The GameStop populists are more powerful than you thinkl
"This is Occupy Wall Street Part 2, but this time it is on their turf, and there are real financial consequences"
I think this is a win for the people that's going to stick. kinda
The rich won again. The retail platforms are blocking the purchase of meme stocks. It will probably cost Robinhood their platform but it's going to suppress these shenanigans.
"They beat us at our own game and made us look foolish. Shut'em down."
The hedge funds they targeted already lost billions and said they were completely out of GameStop, so that was a win.
But yeah, Robinhood prohibiting buying GME is supper hypocritical. Other platforms started yesterday, but Robinhood doing it is like them digging their grave.
It is bouncing back up, from the low of 112 to slightly above 200.
I'm really impressed how organized and dedicated these Reddit/Robinhood users are. This one week looks to be much more effective (and frankly, prudent) than the entire Occupy Wall Street was.
Short selling really should be banned. If a company is going down, it should already be sad enough, do we really need bet that certain companies are going down and profit off of that?
I'm not sure I agree in principle with these reddit investors too... they are wasting their money just so institutional funds can lose billions...
Ideally we should be 'investing' to build up our future. Not to bet on things going south or to destroy each other's wealth. Financial markets should not be weaponized like this. However, I suppose I understand their motive... it's just not something I'd participate in.
They just watched their year end bonuses go up in smoke.
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