GameStop, the world's biggest retail video game chain has had a wild and turbulent 12 months to say the least. As the video game market continues on its inevitable trek to becoming more and more of an entirely digital industry, GameStop has clearly been struggling to adjust to the changes. GameStop drama has been covered here on GBAtemp in the past, from its switch to focusing on merchandise and legacy games, to its decision to remain open following the COVID-19 pandemic, to its reversal of that decision. However, perhaps GameStop's craziest story has very little to do with the financial success of the company itself.

Prior to this month, GME (GameStop's stock ticker)'s 5 year high was approximately $33 in April of 2016. However, that figure drastically plunged down to under $4 in 2020. This month however, that figure has absolutely skyrocketed above anybody's expectations--closing out today (January 27th) at $347.23 a share. Many factors went into this large stock price; primarily a battle waging between investors of the /r/wallstreetbets subreddit and the short seller Melvin Capital. In essence, Melvin is betting that the stock price will fall below $60 by Friday, while hundreds of thousands of investors on /r/wallstreetbets have been rallying together to keep the price above $60 in hopes that it will skyrocket even further. Allegedly, "$1,000 GME by EoW is not a meme!"

Always remember to invest at your own risk, and know that nothing posted on GBAtemp or /r/wallstreetbets regarding this situation should be construed as financial advice.

Source

 

[Foxi4]

Sure, when Ryan Cohen came on board. I assumed that the majority of shorts predated that.

Of course and much worse.

If that is what was being posted on wsb, instead of diamond hands, never sell, go to the moon, then I wouldn't have a problem.

If you do have a stock and you're not at risk of making a significant loss that will jeopardise your life, or if you don't care, I see no reason not to hold. If the squeeze does initiate in the next couple of days, it will be in history books, just like previous massive squeezes. Some people just want to take part in that kind of event.

 

[Plasmaster09]

Sure, when Ryan Cohen came on board. I assumed that the majority of shorts predated that.



Of course and much worse.



If that is what was being posted on wsb, instead of diamond hands, never sell, go to the moon, then I wouldn't have a problem.



robinhood don't have enough money to cope with buying unlimited amounts. A lot of the accusations are coming from people who don't seem to understand how the stock market works.

What about all the platforms yesterday that completely prevented buying GME, AMC, et cetera? Including those that outright said "we don't want to do this but our clearing firm (most of the time Apex) is forcing us to"?
What about Robinhood selling people's shares for them at rock-bottom prices without their consent?
Please, enlighten me on how all of what these platforms have done is somehow not in any way unfair.

 

[smf]

Force for unpredictability. Oh yeah and that is most certainly not a bad thing.

Yes, unpredictability is a very bad thing.

Some seem to viewing it as a big guy vs little guy, and I can see casting it as such even if only for a simpler analogy in some cases.

Except it's really not, it's now more like cobra kai vs miyagi-do.

 

[FAST6191]

Yes, unpredictability is a very bad thing.

Sell me on that notion then. All stocks is unpredictable -- the billion different variables (super conservative estimate there) combined with black swan events and general failures of any kind of centralised price determining scheme that has ever been tried both attesting to that one. At worst another variable has come to light from where I sit.

I don't mislead anyone into thinking that I'm some kind of advisor.

Hard enforced professional qualifications is an interesting one and it happening in financial world makes even less sense than a lot of others from where I sit -- how many traders consistently outperform index funds?

Yeah if you happen to be somewhere where you could get your collar felt for not disclaiming such things then whatever, however as a notion in and of itself...

 

[smf]

If you do have a stock and you're not at risk of making a significant loss that will jeopardise your life, or if you don't care, I see no reason not to hold. If the squeeze does initiate in the next couple of days, it will be in history books, just like previous massive squeezes. Some people just want to take part in that kind of event.

That might be what they are saying, but are already spending the money when each share is worth $66,000,000

What about all the platforms yesterday that completely prevented buying GME, AMC, et cetera? Including those that outright said "we don't want to do this but our clearing firm (most of the time Apex) is forcing us to"?

Exactly the same problem

Anthony Denier, Webull’s CEO, said in an interview that he was told Thursday morning by his clearing firm, Apex Clearing Corp., that Webull needed to shut off the ability to open new positions in certain stocks; otherwise the clearing firm wouldn’t be able to settle the trade. Apex Clearing, Mr. Denier said, was told by the Depository Trust & Clearing Corp. that it would need to put up more collateral to help facilitate the settling of trades. That message, he said, was then passed down to Webull, where individual investors can trade securities such as stocks for free.

What about Robinhood selling people's shares for them at rock-bottom prices without their consent?

Most likely the people who claim this are lying, next they could have made a mistake, there could have been some kind of database corruption, or a hacker got in and triggered the sale. I don't think it's robinhood just randomly selling 12 peoples shares, it would be pointless for them to do it.

Please, enlighten me on how all of what these platforms have done is somehow not in any way unfair.

It's like complaining that it's unfair because the bus is late.

 

[Ghost]

https://www.cnbc.com/2021/01/29/sec...-frenzy-vows-to-protect-retail-investors.html

 

[Foxi4]

Hard enforced professional qualifications is an interesting one and it happening in financial world makes even less sense than a lot of others from where I sit -- how many traders consistently outperform index funds?

Yeah if you happen to be somewhere where you could get your collar felt for not disclaiming such things then whatever, however as a notion in and of itself...

70% of CFD traders lose money. Not sure about real stocks. I don't do CFD for that reason. My profit margin was 65% until this nonsense started. I feel good about that.

 

[smf]

I don't mislead anyone into thinking that I'm some kind of advisor.

That is kinda like when Rudy Guliani claimed that he was just quoting game of thrones and didn't want people to actually fight, after fanning the flames for the last couple of months.

The posts on wsb are designed to trigger fear of missing out & then have their little "this is not advice" disclaimers.

T minus 15 minutes until our FIRST major launch!!! EVERYONE BRACE YOURSELVES!!! These fuckers are gonna try to pull some bullshit out of their asses on the last minute!!! WE HOLD UNTIL DEATH!!! NEVER GIVE UP!!! NO MERCY!!! NO SURRENDER!!! NO RETREAT!!! Together, APES STRONKK

 

[Foxi4]

That is kinda like when Rudy Guliani claimed that he was just quoting game of thrones and didn't want people to actually fight, after fanning the flames for the last couple of months.

Nobody here is a financial advisor, nothing posted on GBAtemp should be misconstrued as financial advice or "tips". Nobody will take responsibility for any financial decisions anybody else makes. You can do your own due diligence, look at the numbers and make an independent decision. All investment carries risk, keep that in mind before making any rash moves. If you're looking for financial advice, this isn't the site for that, I'm afraid.

I'm not sure what to tell you.

 

[Plasmaster09]

That might be what they are saying, but are already spending the money when each share is worth $66,000,000



Exactly the same problem

Anthony Denier, Webull’s CEO, said in an interview that he was told Thursday morning by his clearing firm, Apex Clearing Corp., that Webull needed to shut off the ability to open new positions in certain stocks; otherwise the clearing firm wouldn’t be able to settle the trade. Apex Clearing, Mr. Denier said, was told by the Depository Trust & Clearing Corp. that it would need to put up more collateral to help facilitate the settling of trades. That message, he said, was then passed down to Webull, where individual investors can trade securities such as stocks for free.



Most likely the people who claim this are lying, next they could have made a mistake, there could have been some kind of database corruption, or a hacker got in and triggered the sale. I don't think it's robinhood just randomly selling 12 peoples shares, it would be pointless for them to do it.



It's like complaining that it's unfair because the bus is late.

No, it's that the bus is late because it stopped at the house of a rich guy ten miles away before going to its scheduled stop.
First off, the people claiming their shit's been sold for them without their consent are not in fact lying.
For example: https://www.reddit.com/r/ClassActio...hood_forcing_users_to_sell_isnt_just_a_rumor/
Second off... if Apex was forced to do it by the DTCC, then that still means someone (the DTCC) is actively trying to fuck this up.
Third off, why are you so obsessed with defending the morality of already-rich funds and platforms that have shown their corruption to the world and to your face, while demonizing and ridiculing a movement to end their greed basically just because it's cringy?
...Oh wait, you can't fathom being in the wrong, but you also can't fathom siding with memers- so you instead victim-blame and compare WSB to fucking QAnon and #StopTheSteal.

That is kinda like when Rudy Guliani claimed that he was just quoting game of thrones and didn't want people to actually fight, after fanning the flames for the last couple of months.

The posts on wsb are designed to trigger fear of missing out & then have their little "this is not advice" disclaimers.

w h a t
WSB makes things very clear: it is not an advice sub.
It's called wallstreetbets for a reason- it's people that are either bored or irrational making weird stock decisions for the lulz.
You compare them to #StopTheSteal, yet you seem to be the one pulling evils and threats from thin air while I'm literally just stating the things that these funds and platforms have done and admitted to doing.

 

[Ghost]

Had to buy some AMC

[emoji573][emoji573]

 

[smf]

if Apex was forced to do it by the DTCC, then that still means someone (the DTCC) is actively trying to fuck this up.

You appear to not understand the rules that all people trading in the stock market have to adhere to.

These gamestop stocks go back to being essentially worthless once this is all over, they don't want to be left with worthless stocks if robinhood and all their customers go bankrupt.

If the hedge funds were doing their trades using robinhood, then they would have the same limits applied to them.

yet you seem to be the one pulling evils and threats from thin air while I'm literally just stating the things that these funds and platforms have done and admitted to doing.

Your arguments are equivalent to trump complaining that he was in the lead and then biden surged ahead. You misunderstand how the stock market works and then say that is proof

 

[Plasmaster09]

You appear to not understand the rules that all people trading in the stock market have to adhere to.

These gamestop stocks go back to being essentially worthless once this is all over, they don't want to be left with worthless stocks if robinhood and all their customers go bankrupt.

If the hedge funds were doing their trades using robinhood, then they would have the same limits applied to them.



Your arguments are equivalent to trump complaining that biden only won once they started counting the postal votes.

no they really aren't
I'm just like "dude look at these things they are doing and the distinct lack thereof on WSB's side"
you're acting like the [x]illionaires are somehow the victims here when they're getting a dose of ONE of the tricks they've used for years

 

[smf]

no they really aren't

Yes they are, you misunderstand every explanation as a sign of something evil.

It's like

I'm just like "dude look at these things they are doing and the distinct lack thereof on WSB's side"

wsb is a pump and dump at this point. There are posts coaxing newcomers to put their lifesavings in because the stocks are going to become infinitely valuable.

They describe themselves as "Like 4chan found a bloomberg terminal illness"

 

[Foxi4]

wsb is a pump and dump at this point. There are posts coaxing newcomers to put their lifesavings in because the stocks are going to become infinitely valuable.

They describe themselves as "Like 4chan found a bloomberg terminal illness"

WSB operates in public, it's not a super secret boiler room. In any case, you go on a subreddit with that description, you make an investment based on the advice of people who call themselves mentally challenged apes and admit they don't know what they're doing besides holding and waiting for tendies, it goes sour for you and... it's their fault? OK.

 

[CallmeBerto]

If you YOLO your life savings on anything....you kinda deserve anything that happens to you.

 

[Chary]

Everyone held to 320+ at close...what a week. What a story. What a whole ordeal. Amazing. Can’t wait to see what Monday brings.

 

[smf]

WSB operates in public, it's not a super secret boiler room. In any case, you go on a subreddit with that description, you make an investment based on the advice of people who call themselves mentally challenged apes and admit they don't know what they're doing besides holding and waiting for tendies, it goes sour for you and... it's their fault? OK.

You can't maintain a moral high ground and post all that shit knowing that someone could lose a load of money. If you don't have a moral high ground then it's no better than wall street & all the outrage goes out the window.

If you YOLO your life savings on anything....you kinda deserve anything that happens to you.

Well the person that persuades you to do it deserves some thing bad to happen to them too. But if wsb was just people saying that, then it would be in better standing.

 

[Foxi4]

You can't maintain a moral high ground and post all that shit knowing that someone could lose a load of money. If you don't have a moral high ground then it's no better than wall street.

If you walk into a circus, fail to notice the clowns and the monkeys, walk into the lion's cage and ask "is this a Wendy's?", I don't care what happens to you. You've failed at every step of your endeavour. I fail to see how this is a moral issue at all - everybody and their dog knows that participating in the stock market entails risk. If you choose to make your calls according to what a council of chimps is telling you to do, you get what you deserve. As a side note, as a result of this unexpected rally people have paid off loans and improved their lives - that offsets any bag holding in my mind. I'll sleep easy, thanks for the concern trolling though.

 

[smf]

If you walk into a circus, fail to notice the clowns and the monkeys, walk into the lion's cage and ask "is this a Wendy's?", I don't care what happens to you. You've failed at every step of your endeavour.

Everybody learns somewhere, just because you have the luck of gaining experience and it going ok for you then don't judge people who haven't.

I fail to see how this is a moral issue at all - everybody and their dog knows that participating in the stock market entails risk.

Some on wsb are pretending it's a moral issue and that morals are on their side. What wsb are posting is that there are no risks, the prices will go to infinity (and beyond probably).

As a side note, as a result of this unexpected rally people have paid off loans and improved their lives - that offsets any bag holding in my mind.

That is fine, as long as they weren't posting about diamond hands and hold until death while executing their trades.