Not only are their future prospects grim because of digital delivery of games, but their core market of gamers despises them because in the last two or three years they have made their workers become super aggressive pushing membership cards and extended warranties. It's really not a place gamers like going but the workers get berated and have their hours slashed to the bone when they're not able to con people into their warranties on games.
Another reason gamers hate them is because when they have extremely high demand items they only sell them in bundles, often with lots of useless crap thrown in. Like when Switch came out at $299 they'd bundle all these crap figurines and assorted junk to sell them in a $450 bundle. For the $499 PS5 right now they have one good $730 bundle with Spiderman + Demon's Souls (the two big games on PS5) + a controller + a Gamestop gift card and another $720 bundle that's the same except replacing Demon's Souls with some crap kids game.
I'll miss Gamestop when they go under though. Mainly because they're a monumentally stupid company, their management must have worms in their brains or some . Sometimes they'll do these trade-in promotions that are ridiculously stupid, like an extra $5 per traded in game of store credit towards a preorder once you trade in six games, so a couple of times on deals like that I'd have a $60 game I wanted and go pick up a bunch of $1 Wii and 360 games that pawn shops are desperate to get rid of and then trade them into GS for like $7 or $8 each store credit. So buy a $65 game for like $9 or $10 out of pocket.
There was another promotion back when Switch first came out and they were only selling those $450 bundles where you could work it to sell them copies of crap games like Plants Vs Zombies 2 for $80 store credit. So people would just go raid Best Buy and Walmart for these games where they were selling for $20, take them out of the shrink wrap, and then trade them in as used for like $80 credit and end up getting these expensive Switch bundles for like $120 out of pocket. That same promotion I got a couple of $60 games for free by selling them my PS4 games and then buying them right back except they paid me more than I paid them to get my games back so I'd basically get store credit for letting them hold my games for two minutes.
Another funny thing people were pulling on Gamestop is when a Gamestop location would close down they'd start liquidating their XBox One X systems for $100 a pop, so people would buy them all up and then go to the Gamestop down the street and sell them back for around $220 cash or $300 store credit.
Speaking of Gamestops being right down the street, they have grossly oversaturated the market. I have like 30 that are a quick 15-20 minute drive from me. They have way too many stores. I have no idea how that company isn't bankrupt yet.
Last edited by baseline bum; 01-27-2021 at 04:58 PM.
even the smart ones there know that was never going to last, this was a once in a lifetime event where a hedgefund shorted 140% of the stock, and ed themselves. The big alpha move would be the guy who posted his 20 million saying he's going to sell, but shorting the stock right before he does. Don't know if that's legal thoughPulled the trigger on January 2022 puts with a $30 breakeven price, not a chance these Redditers keep the charade going for a full ing year
Yeah that’s definitely stock manipulation
Charles Payne EXPLODES on Wall Street ‘Whining’ Over Skyrocketing GameStop Stock:
‘It’s Making Me Sick!’
“The shorts, first of all, all this nonsense, all of this noise, all this whining by Wall Street, it’s making me sick!” Payne exclaimed,
“One hundred forty percent of GameStop was short.
I didn’t hear one person on TV complaining about Wall Street trying to crush GameStop,
140% short!”
https://www.mediaite.com/tv/charles-...aking-me-sick/
i do feel bad for the people that buy in super late, they're gonna get ed, not as bad as the hedge funds though.Yeah that’s definitely stock manipulation
I don’t really feel bad for those people, a cursory look at how the options are priced should show the share price is completely out of whack. You shouldn’t take stock advice from Reddit.
last week you should have
coincides with wallstreetbets going down, I'm sure there's some real panic selling right now
Panic selling/investors who owned it for <1 month and are ready to cash out
Called it
Never with ricu white ppl and their money. They will carve you up
Posters in this thread have explained how the reddit mob is *not* extremely dangerous to ins utional investors, but it has shown it can be more than a trivial nuisance.
A real hedge fund declared bankrupcy, tght?
Last edited by Winehole23; 01-27-2021 at 09:11 PM.
They’re not wrong but it’s selective outrage. Hedge funds being able to short a stock into oblivion such that it can’t raise new capital is just fine, but suddenly CNBC thinks this is dangerous?
That's the complaint coming from the pro hedge fun side, that their short position was entirely founded in reality and their trade got busted for the lulz.
This is completely true in the economics sense, but also in the economics sense, having that kind of exposure to shorted stock involves just as much risk.
Pocahontas is on the case...
Senator Warren Releases Statement on GameStop Trades
Washington, DC - United States Senator Elizabeth Warren today released the following statement on the recent GameStop trades.
"With stocks soaring while millions are out of work and struggling to pay bills, it's not news that the stock market doesn't reflect our actual economy. For years, the same hedge funds, private equity firms, and wealthy investors dismayed by the GameStop trades have treated the stock market like their own personal casino while everyone else pays the price. It's long past time for the SEC and other financial regulators to wake up and do their jobs - and with a new administration and Democrats running Congress, I intend to make sure they do."
https://www.warren.senate.gov/newsro...amestop-trades
AMC - to the moon!
It’s a fair complaint but no matter how bad the stock is, holding a naked short position has risk.
What the Reddit re s don’t realize is that 90+% of them are going to lose a load of what little wealth they have on this just for the sake of triggering da hedgies.
This is getting dangerously close to stock manipulation. Anyone with a Robinhood account can trade after hours, that’s not something only ins utional investors can do.
How many individuals are we talking about and on average how much did they put in?
I just heard about this stuff and have no sense of scale.
I think SR is right. There are a few whales on Reddit running a pump and dump while a bunch of incels on Reddit who wanted to dabble in stock trading are about to lose their shirt.
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