Reddit/Gamestop vs.Wall Street

Doctor Roast

Americas system of doing things is truly fcuked

https://www.mediaite.com/news/reps-waters-mchenry-will-hold-gamestop-hearing-after-they-took-max-contribution-from-robinhood-ceo/

zom

completedit wrote: »

Even Tesla seems to me to be based off cult of the ceo and image rather than the true productive capability of the company.

Musk played dirty on stock too and all he got was a slap on the wrist...

https://www.theverge.com/2018/9/29/17918252/elon-musk-tesla-sec-securities-fraud-lawsuit-settlement-fine-penalty

The SEC opened an investigation into Musk and Tesla in early August, shortly after the CEO abruptly announced on Twitter that he was considering taking the company private at a share price of $420.

Overheal

Jon Stewart has signed up to Twitter just for this occasion.

https://twitter.com/jonstewart/status/1354901018564321287?s=20

https://twitter.com/jonstewart/status/1354967777166172163?s=20

https://twitter.com/jonstewart/status/1355276142262050817?s=20

https://twitter.com/jonstewart/status/1355323168110632961?s=20

briany

All that the bigshot Wall Street traders have to do is sit it out until the Reddit bubble collapses in on itself in one way or another. Already, the share price of Gamestop has taken a massive tumble, so the system isn't going to let Wall Street traders lose billions of dollars anyway. The big guy almost always wins, in the end.

Darc19

briany wrote: »

All that the bigshot Wall Street traders have to do is sit it out until the Reddit bubble collapses in on itself in one way or another. Already, the share price of Gamestop has taken a massive tumble, so the system isn't going to let Wall Street traders lose billions of dollars anyway. The big guy almost always wins, in the end.

Or you could say that fundamentals always matter in the end.

GameStop are losing money, have far too many stores and poor online presence.

completedit

Tom O Neil wrote: »

Perhaps this was a 4chan prank designed to make gullible redditors lose their life savings?

Black Mirror troll face

KyussB

So now WSB are attempting to go after commodities. This time it is silver. Next time are they going to try and hike the price on something essential, that we all depend on and would end up directly paying more for?

They are not 'the little guy'. They are miniature-Shkreli's, who've figured out they can use social media and hype, to wield a similar level of influence as the real Shkreli - with the same amount of illegality and fraud.

Wanderer78

KyussB wrote:

So now WSB are attempting to go after commodities. This time it is silver. Next time are they going to try and hike the price on something essential, that we all depend on and would end up directly paying more for?

Spotted that with silver alright, economist pippa malmgren mentioned it during the week, this could end in trouble for us all, dangerous game

steamsey

KyussB wrote: »

So now WSB are attempting to go after commodities. This time it is silver. .

But they're not. They're saying the silver thing is a deliberate distraction. The media and bots on reddit are driving the narrative around silver. They're still after GME, AMC etc. What's really worrying at this stage is the repeated message that the squeeze just needs another day. I think everyone got duped but I hope not. Certainly by Friday it'll be much clearer.

JeffKenna

KyussB wrote: »

So now WSB are attempting to go after commodities. This time it is silver. Next time are they going to try and hike the price on something essential, that we all depend on and would end up directly paying more for?

They are not 'the little guy'. They are miniature-Shkreli's, who've figured out they can use social media and hype, to wield a similar level of influence as the real Shkreli - with the same amount of illegality and fraud.

No there not. What's more worrying is the media narrative pushing that they are for some reason.

paw patrol

JeffKenna wrote: »

No there not. What's more worrying is the media narrative pushing that they are for some reason.

one would wonder?
where this falls flat on it's face or not.
The cabal / conspiracy/ elites (whatever term you fancy) has been exposed and nobody can deny it's existence.

paw patrol

briany wrote: »

All that the bigshot Wall Street traders have to do is sit it out until the Reddit bubble collapses in on itself in one way or another. Already, the share price of Gamestop has taken a massive tumble, so the system isn't going to let Wall Street traders lose billions of dollars anyway. The big guy almost always wins, in the end.

is the price falling cos the hedge funds are selling small amounts tio each other at cheap prices to spook others into selling.

I read the volumes being traded were really low and this would indicate that the hedge funds are manipulating the market price price.

B-D-P--

KyussB wrote: »

So now WSB are attempting to go after commodities. This time it is silver. Next time are they going to try and hike the price on something essential, that we all depend on and would end up directly paying more for?

They are not 'the little guy'. They are miniature-Shkreli's, who've figured out they can use social media and hype, to wield a similar level of influence as the real Shkreli - with the same amount of illegality and fraud.

You are quite clueless there.
1 very few WSB actually purchased Silver,
2 even if everyone on WSB started buying silver, it would be a drop in the ocean for silver.
3 Dont listen to your average media for what WSB are doing, they are only following the script given to them by the big guys up top.

Wanderer78

paw patrol wrote: »

one would wonder?
where this falls flat on it's face or not.
The cabal / conspiracy/ elites (whatever term you fancy) has been exposed and nobody can deny it's existence.

no they havent, shur we ve always known about these kind of behaviors, we just continually ignore them, we probably will this time also

KyussB

steamsey wrote: »

But they're not. They're saying the silver thing is a deliberate distraction. The media and bots on reddit are driving the narrative around silver. They're still after GME, AMC etc. What's really worrying at this stage is the repeated message that the squeeze just needs another day. I think everyone got duped but I hope not. Certainly by Friday it'll be much clearer.

On looking at it more closely, it originated from a normal/regular user on the sub, reaching 14k upvotes before the user was banned without any explanation - presumably to keep the focus on GameStop - and was picked up by news media then.

This hints that the mods on that sub may be curating the narrative, to keep the focus on GameStop - which would be notable, as it would make them very important/influential figures in promoting illegal market manipulation.

paw patrol

Wanderer78 wrote: »

no they havent, shur we ve always known about these kind of behaviors, we just continually ignore them, we probably will this time also

I've known but i've had close friends deny it in the past.
they can't now...whether it makes any change ..who knows.

Wanderer78

paw patrol wrote: »

I've known but i've had close friends deny it in the past.
they can't now...whether it makes any change ..who knows.

shur major events such as dot com and 08 have showed us how dysfunctional our financial sectors are

StupidLikeAFox

paw patrol wrote: »

is the price falling cos the hedge funds are selling small amounts tio each other at cheap prices to spook others into selling.

I read the volumes being traded were really low and this would indicate that the hedge funds are manipulating the market price price.

Is there any proof of that Some? Some guy on WSB says the the hedge funds are trading among themselves, conspiring to lower the price, and they all lap it up. Its a cult like community that are easily swayed using memes and catchphrases.

They can't or won't see falling prices as anything other than a conspiracy led by the "elites" against the little man, when on the face of it the entire thing has been a classic pump and dump, some people got rich off it and there is a chance that a significant number of them work on wall st

paw patrol

StupidLikeAFox wrote: »

Is there any proof of that Some? Some guy on WSB says the the hedge funds are trading among themselves, conspiring to lower the price, and they all lap it up. Its a cult like community that are easily swayed using memes and catchphrases.

They can't or won't see falling prices as anything other than a conspiracy led by the "elites" against the little man, when on the face of it the entire thing has been a classic pump and dump, some people got rich off it and there is a chance that a significant number of them work on wall st

who knows?
No me anyway I'm sure my pension is in equities but shares aren't for me .

steamsey

So now WSB is saying that RobinHood has removed all restrictions on AMC and GME. Every day it's "tomorrow is the day". With the restrictions removed, and everything they believe about short sellers - if it doesn't pop today I'd say it's a dead duck - if it isn't already.

Pretty entertaining watching this right now and following wsb. It's up 37% since the market opened 25 mins ago.

hatrickpatrick

This is all kicking off again today, since the Congressional hearing last week. Trading of GME had to be suspended several times today, not because of shenanigans or sh!tty behaviour by the trading platforms, but in this case because the price rose so quickly that the stock exchange's own internal circuit breaker rules kicked in.

https://en.wikipedia.org/wiki/Trading_curb

What's interesting is that Melvin claimed during the hearing last week that they had actually closed out of their short position before the squeeze kicked in, but that didn't make a huge amount of sense since it was only during the initial squeeze that they announced a loss in the billions of dollars and had to be bailed out by another fund. I don't know the technicalities of how these loopholes work but it's been theorised on WSB that they've pulled some trick to technically appear to no longer be shorting and be able to legally claim this, while in fact the shorts are still outstanding. From what I've been reading it seems to be similar enough to Anglo's trickery of transferring loans from one bank to another before different reporting dates, so as to conceal their existence altogether.

Either way, the guy whose initial investment kicked all this off announced the day after the hearing that he was not only still holding, but that he'd bought in again at $50. Hype train took off yesterday and has continued in abundance today.

Will be interesting to see who benefits from this, honestly. My fear would be that during the prolonged dip, the hedge funds who were previously shorting may have also opened long positions in expectation of a further meme wave, and thus stand to profit immensely if Redditors meme the stock into the stratosphere again. The way I see it, the only thing that gave them an edge last time around was the total element of surprise, an element which is completely non-existent this time since you can bet all of the institutional players involved have teams of people combing through the Reddit threads line-by-line so as to anticipate future moves.

I'd love it if this story still had the David v Goliath ending that was originally envisioned, but I feel that the game was up as soon as the market was f*cked with during that first attempt, and that those involved will have surely used the intervening weeks to shield themselves from any further internet-led surprises.

Still immensely fascinating to watch!

Montage of Feck

completedit wrote: »

A wise adage is that investing should never be sexy or exhilarating. Its a bad sign if the stock market is reduced to what it has become. Even Tesla seems to me to be based off cult of the ceo and image rather than the true productive capability of the company.

How a niche car company can be worth multiples more of the likes of Ford and VW is beyond me.

PopePalpatine

Montage of Feck wrote: »

How a niche car company can be worth multiples more of the likes of Ford and VW is beyond me.

It's FOMO powered by a Saturn V.

In all seriousness, they're probably the first company that comes to most people's minds when you mention electric cars. Yes, their sales are a tiny percentage of those enjoyed by the likes of VW, Ford, Toyota etc., but think of it another way: they don't have tens of billions of dollars worth of sales of ICE-powered vehicles to replace. On top of that, there's their battery division. It could be like a traditional car manufacturer having their own oil company.

Donald Trump

Montage of Feck wrote: »

How a niche car company can be worth multiples more of the likes of Ford and VW is beyond me.

People are (likely over) valuing the future potential of the company and growth in uptake of the technology.


20 years ago, a share of APPL was trading for about 30 cents.
Today, that value is $120. So 400 times.



Everyone is buying in now on that potential. If the fair market value of APPL was indeed 30 cents but it was trading at $30 in 2001 then you'd have thought the people were mental. But if they had bought at that overinflated price, they'd still be doing fairly well today.



Very risky of course and I wouldn't say they'd be right to do it, but if they want to take the risk and hope that the company will skyrocket, it's their money to gamble.



(Ignore that the iphone/ipod wasn't released yet in Feb 2001)