GameStop Stock surges due to meme traders

Gergar12

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I am going to go out on a limb to defend Scott Galloway who yes did call people on Wall Street Bets, and Reddit sexless, relationless virgins and women addicted to Instagram and cutting themselves due to it.

He's a good person, grew up in poverty, then his parents found their way to the middle class. He then became a multi-millionaire by being a good speaker, and marketing CEO, and founded L2inc. And no he's not my only hero, the top spot goes to Bernie Sanders, but he's going at giving good advice based on this economy.

1. Get accredited at a good school(college)

2. Work hard when you're young

3. invest the money due to compound interest in good companies(Amazon, Facebook, Google, Apple for example)

4. Get a good degree that pays well( I would add that you should get a degree in something your good at, like, and other people will pay you to do it)

5. Don't drink, smoke, or do drugs

6. Work out, and get relationships with family, and friends, and a lover to prolong your life

7. Seek a mentor(It's implied in the book)

I did read the book Algebra of Happiness by him, and it's by far the best self-help book.

I think he tried to think about how you could do well in a capitalist economy. He skips the bullshit of following your dreams from many of my teachers, the only problem for him is this.

1. Let's say you do what he tells you to do, and go to community college, then a good state college, and do a business degree, that's a allot of if, and that chain could be broken like it was for me when I couldn't pass business statistics.

2. Working hard when your young is great, but what about health problems when you're young.

3. Investing money is great, I used acorn's portfolio's with an aggressive posture, but what if you can't pay your bills

4. Again I wanted to be an engineer, then finance, but couldn't pass the classes

5. Some people were addicted when they were young, and I would add in moderation for everything, salt, sugar, caffeine, etc. I am good at not doing bad substances, but I eat lots of sugar.

6. Again some people have health issues, some have bad family members, some have fewer friends, it's not easy.

7. Good luck doing that because most likely you need to network, be lucky, or seek a job, granted I had one who assumed I could go get a masters, but I decided now my abilities are best at getting a second major. Again you need need to gauge your ability.

The main problem with him is his defense of capitalism, not everyone can do these things, and some people can do all, some only a few, and some only half. I am lucky I can do a majority. Shouldn't we redirect some of the economic power towards those who have faced historical injustices, have current problems, and be less selfish so that we have a more equitable society instead of asking everyone to do better at capitalism we should make sure people who do hard work like essential workers be paid more even if their jobs don't require a degree as doing so they could invest in their kids, themselves, or in society via helping their parents with a medical bill with 15 dollar minimum wage, and etc.
 

Dirty Hipsters

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In case anyone cares about the House Committee on Financial Services hearing that happened today where DeepFuckingValue and the CEO of Robinhood testified:

 
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Dirty Hipsters

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UPDATE

Bumping this thread because there's new GameStop stock news.

The meme stock is back and there's a lot of excitement on reddit. There's a lot of complicated discussion by a bunch of both very smart and very dumb people, but essentially there is some evidence that shorts never actually closed their positions. They were able to delay for 3 years by borrowing shares to make it look like they closed their positions. They then spent 3 years moving those shares around between each other to make it look like people were selling shares at low prices in order to artificially lower the price of the stock in hopes that retail investors would give up and actually sell their shares. Those borrowed shares have a maximum expiration date of 3 years, which would mean that a large number of them would be set to expire this month. (Not how it actually works, but this is the easiest way to explain it because the stock market is a bunch of complicated bullshit with fake money.)

The stock price is currently way up at its highest point since 2021, closing today at $47 per share, with a high of $67 per share earlier in the day (since the stock split in 2022, the closing price would be equivalent to $188 per share by 2021 standards). This is far below the maximum that it was trading at in 2021, but still about 3x what it was at for the last 3 years.

Roaring Kitty aka Deep Fucking Value aka Keith Gill has started posting again, and earlier last week showed his position on the stock, proving that he himself never sold the stock and actually continued to buy up to $200 million worth (which is now up to $586 million this week).

The market is confused, the media is confused and excited, hedges are claiming that they definitely did close on their shorts, though there's also evidence that some of them have shorted the stock even more. There's calls to investigate Keith Gill for market manipulation just due to him sharing his position on the stock (which is in no way illegal).

Anyway, there's potential for this stock to rocket up this month, or potential for it to crash spectacularly if the apes are wrong. Either way I'm having a good time and I'm along for the ride. I never sold, Diamond Hands baby.
 
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Worgen

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Whatever, just wash your hands.
I hope it crashes hard. Its a garbage company that deserves to die for its mismanagement. The fact its been brought back for the memes is really stupid.
 
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CriticalGaming

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UPDATE

Bumping this thread because there's new GameStop stock news.

The meme stock is back and there's a lot of excitement on reddit. There's a lot of complicated discussion by a bunch of both very smart and very dumb people, but essentially there is some evidence that shorts never actually closed their positions. They were able to delay for 3 years by borrowing shares to make it look like they closed their positions. They then spent 3 years moving those shares around between each other to make it look like people were selling shares at low prices in order to artificially lower the price of the stock in hopes that retail investors would give up and actually sell their shares. Those borrowed shares have a maximum expiration date of 3 years, which would mean that a large number of them would be set to expire this month. (Not how it actually works, but this is the easiest way to explain it because the stock market is a bunch of complicated bullshit with fake money.)

The stock price is currently way up at its highest point since 2021, closing today at $47 per share (since the stock split in 2022, this would be equivalent to $188 per share by 2021 standards. This is far below the maximum that it was trading at in 2021, but still about 3x what it was at for the last 3 years.

Roaring Kitty aka Deep Fucking Value aka Keith Gill has started posting again, and earlier last week showed his position on the stock, proving that he himself never sold the stock and actually continued to buy up to $200 million worth (which is now up to $586 million this week).

The market is confused, the media is confused and excited, hedges are claiming that they definitely did close on their shorts, though there's also evidence that some of them have shorted the stock even more. There's calls to investigate Keith Gill for market manipulation just due to him sharing his position on the stock (which is in no way illegal).

Anyway, there's potential for this stock to rocket up this month, or potential for it to crash spectacularly if the apes are wrong. Either way I'm having a good time and I'm along for the ride. I never sold, Diamond Hands baby.
WHAT YEAR IS IT!?
 

Dirty Hipsters

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I hope it crashes hard. Its a garbage company that deserves to die for its mismanagement. The fact its been brought back for the memes is really stupid.
If a company sucks and its business practices are bad then it deserves to be killed by the capitalist market, not hunted by hedge funds looking to make a buck by actively destroying a company. The GameStop stock has been about sticking it to wallstreet and punishing the hubris of hedge funds as much as it has been about GameStop's performance as a company.

You should watch Dumb Money if you haven't yet, it does a pretty good job of showing why people gave a shit about GME 3 years ago, and why so many people have continued to hold.
 

Worgen

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Whatever, just wash your hands.
If a company sucks and its business practices are bad then it deserves to be killed by the capitalist market, not hunted by hedge funds looking to make a buck by actively destroying a company. The GameStop stock has been about sticking it to wallstreet and punishing the hubris of hedge funds as much as it has been about GameStop's performance as a company.
You're right, but also, shorting a company is a good way of punishing a company for mismanagement and that is killing it in the capitalist market. Instead you have a bunch of idiots who got together because they don't like what a certain thing sounds like, to save a company that they have fond memories of, but that is scummier then the short sellers and deserve to be killed off.
 

Dirty Hipsters

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You're right, but also, shorting a company is a good way of punishing a company for mismanagement and that is killing it in the capitalist market.
It really isn't.

For a market maker it's not hard to short even a moderately successful company by spreading just a bit of FUD to lower the stock price and scare people into selling to further spiral the price down. Smaller companies are especially susceptible to this, and the least likely to recover.

Frankly i think that shorting stocks should be illegal because short sellers manipulate the market by conspiring to artificially damage companies. The point of the stock market is supposed to be to invest in companies, not actively try to kill them off.

Shorting only benefits rich assholes.
 

Gergar12

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It really isn't.

For a market maker it's not hard to short even a moderately successful company by spreading just a bit of FUD to lower the stock price and scare people into selling to further spiral the price down. Smaller companies are especially susceptible to this, and the least likely to recover.

Frankly i think that shorting stocks should be illegal because short sellers manipulate the market by conspiring to artificially damage companies. The point of the stock market is supposed to be to invest in companies, not actively try to kill them off.

Shorting only benefits rich assholes.
Nope don’t agree with that. Short sellers can something’s correct badly performing companies with poor internal finances and bad companies like Sam Bankman’s FTX.
 

Dirty Hipsters

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Nope don’t agree with that. Short sellers can something’s correct badly performing companies with poor internal finances and bad companies like Sam Bankman’s FTX.
FTX wasn't taken down by short sellers though...


 
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Gergar12

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FTX wasn't taken down by short sellers though...


Then I was wrong on that example, but my point still stands.

 

Dirty Hipsters

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Then I was wrong on that example, but my point still stands.

Does it? Even the article you posted (which is an opinion piece) doesn't state that short sellers provide any kind of valuable service. All it states is that sometimes they're correct that a company is performing financial fraud, and sometimes this can influence the market.

The article even states the following:

"When someone has a vested interest in a stock's price falling, how accurate do his or her assertions need to be?"

Which, like I said in my previous post, is one of the biggest problems with short sellers. They can make spurious claims that cause a stock price to drop, and they benefit from doing so.
 
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tstorm823

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Which, like I said in my previous post, is one of the biggest problems with short sellers. They can make spurious claims that cause a stock price to drop, and they benefit from doing so.
I don't think that is the biggest problem. Even without market manipulation, the ability to benefit from your "investment" failing is a bad incentive. If such a thing existed in a video game economy, it would be patched out for encouraging the wrong player behavior.
 

Agema

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I don't think that is the biggest problem. Even without market manipulation, the ability to benefit from your "investment" failing is a bad incentive. If such a thing existed in a video game economy, it would be patched out for encouraging the wrong player behavior.
This seems to be pretty much the same problem that Dirty Hipsters is talking about, if you consider that what he is talking about is a "wrong behaviour" that the bad incentive causes.

However, if the societal value of a stock market is to encourage the efficient allocation of resources for society's production, the question to ask is whether shorting usefully contributes this overall efficient allocation of resources, not whether it encourages the "right" behaviours in individuals.