stock memes?
perhaps someone with relevant professional experience can explain if, or how this is real.
Short sellers are actually not as evil as they're portrayed. There are much worse actors on Wall Street and off it. I don't ever sell short, especially in a bull market, but this is probably real.
Worth a shot?
They're ganging up on ridiculous short bets... it's not that Gamestop is on solid ground, it's that 160% of their stock was shorted at some point, which is by any measure ridiculous.
Unfortunately this is another side effect of what the market has become. It's a gambler's game with some of these instruments, which don't contribute anything to companies seeking long term capital (what the market used to be a while back).
It's always been a gambler's game
Not always. There was always risk, which is a different thing.
Now its all short-term. Onus is on next quarter, realize some profits and bail out before creative accounting gets caught. Bet and make money on companies going kaput.
That's how Buffet got his start. There have always been investors trying to suck the last drop of blood out of dying companies. And there have always been (and still are) solid companies that are good long term investments.
People can invest long term, trade short term, or mix it up. I don't see the problem.
Clearly a lot of people do it, but I'm not speaking about what investors can or can't do, I'm talking about the bonafies of having a capital market dominated by big players and what's the value that provides to society.
Shorting positions is probably as old as the market itself, but the sheer size of some of these groups is not. A multi-billion fund loading up on a public, big short position is likely a death knell on almost any medium-size company (reddit kids notwithstanding).
Does it makes the fund money? Sure. What value does society gets from these type of transactions?
At least investing long meant supplying capital to a company to expand, which normally translated to more and better jobs, etc.
"gamma squeeze"
one guy challenged them, and they took it personally
Also an interesting site note is that hedge funds may try and astroturf that board for their own benefit. Apparently there was some weird shenanigans today with people promoting alternate threads on that site
So are we taxpayers going to bail these guys out, tbh? or they're not too big to fail?
LMAO financial derivatives are cancer
Buying and holding common stock is not supplying capital to the company, they got their capital when they first issued the stock. The big short of GME didn't turn it into a failing business model just as this pump isn't turning it into a winning business model. So I don't really get your complaint about long term/short term investing.
I guess your complaining about hedge funds (or anybody) prematurely crushing a stock price by shorting which can prevent the company from accessing more capital to try and turn the company around. That's a valid complaint but we went through those complaints in '09 and it was determined by the govt that "nah, it's all good, carry on folks".
I suspect if retail traders make a habit of crowd sourcing to over hedge funds the SEC will decide this a problem that must be fixed and make some rule changes to give the edge back to the hedge funds. It wouldn't be hard for them to shut the reddit/robinhooders out of the options game.
looks like this is how we get the Republicans on board with sleepy joe's bailouts
Market capitalization is leveraged into loans, more rounds of stock issue, etc, so it absolutely provides companies capital. A company doing ty and stock tumbling down is going to have much more trouble obtaining financing via new stocks or loans than a huge company doing well.
But then again, the latter part of what you mention above is exactly my point. This whole short-the-stock/ -the-short-position game does absolutely nothing for the company, it's workers, etc. It's strictly a money game between shareholders. At that point it stops fulfilling any service to the broader economy.
Well, its just my opinion. If you ask me, lots of things went down wrong in '08/'09.
I'm just not sure it's such an easy fix. Coops are created to do similar things and are perfectly legal. The easiest fix for hedge funds is probably not put themselves in such ridiculous short positions that are so easy to spot and attack.
Still ing hilarious that a bunch of idiots found a way to bankrupt a hedge fund and then hit them for an extra 2.7 billion afterwards
Plausible this hits 10k per share.
And it's doubled in value since he posted this.
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