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Ironhold

Stock Market Explodes Over Stock Surges

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https://www.bbc.com/news/business-55817918

https://www.marketwatch.com/story/is-gamestop-stock-being-manipulated-by-social-media-users-or-is-it-free-speech-legal-experts-weigh-in-11611636278

A large word-of-mouth campaign on the internet has led to surges in the stock prices of retail chain GameStop and several other companies who are so financially troubled that many investment firms had been betting against them. 

These firms are now losing billions of dollars because of this, and so things are getting crazy fast. 

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I find this incredibly interesting, the online mobs can do some amazing things

Edited by Fether

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Too many people practice sheep/lemming behavior, and it is all too easy for a few people with perceived "social influence" to make millions off of their predictability. So many are being used without even knowing it.

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17 minutes ago, scottyg said:

Too many people practice sheep/lemming behavior, and it is all too easy for a few people with perceived "social influence" to make millions off of their predictability. So many are being used without even knowing it.

But think of what an organized Reddit mob of 50,000 amateur “investors” (not sure we can call them that at this point) with $50 each can do to a dying company’s stock? 

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50 minutes ago, Fether said:

But think of what an organized Reddit mob of 50,000 amateur “investors” (not sure we can call them that at this point) with $50 each can do to a dying company’s stock? 

Yes, the term investor (along with many others) is thrown around too widely these days. :)

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1 hour ago, NeuroTypical said:

So, it's not that the "Stock Market Explodes", it's that Gamestop stock went up?

Yes, artificially... but not really artificially. The master minds behind it and getting rich and everyone else is gambling hard... game stop will come crashing down again, no doubt about that. As an avid gamer, I can say GameStop has been a hated company for years. Even at their prime people didn’t love it. With the progression of the gaming industry, somehow GameStop has only succeeded in digressing and making awful business decisions. They even tried selling themselves and no one wanted them.

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3 hours ago, scottyg said:

Yes, the term investor (along with many others) is thrown around too widely these days. :)

Well I think anyone who invest can get away with getting called an “investor”. These guys though, they aren’t investing. They are using large numbers to manipulate the market to their benefit.

I read another article that some of these actual professional investors are going after one of the guys that shorted the GameStop stock. Those hedge fund guys better be careful. They are poking at the gates of the largest horde of mindless beings ever in history. Jab too hard and they will have millions of high school kids with allowances, college students with spending money, and young adults with jobs recreating what they did with GameStop on other failing companies. The video game and online forum community are probably the strongest and unified community out there.

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12 hours ago, NeuroTypical said:

So, it's not that the "Stock Market Explodes", it's that Gamestop stock went up?

Gamestop is the primary one, (and boy do I wish I had invested in it during March of 2020...a little over $4 then, and yesterday selling for up to $370), but AMC and a few others have also increased in value in the past 3 days.

Gamestop was particularly malicious as some of the actions by a hedge fund from what I understand were designed to make Gamestop go out of business, and thus with the falling stock prices be able to short them very effectively and make a massive profit.  Instead, the move is to hold up the Gamestop stock prices until the shorts come due (on Friday?) which then will put that hedge fund (and perhaps another one which is propping it up) to face bankruptcy themselves instead.  It was the maliciousness of the act of the hedge fund that drove the individualsto unite so strongly against it.

However, we have seen some very blatant and obvious stock manipulation by some of the other actors and companies (some also say CNBC is in on the manipulation) in order to try to bring GME back down to earth, and perhaps save the hedge fund from owing such massive debts that they themselves face the same bankruptcy that they were trying to force on Gamestop.

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My sources on the street* tell me the following:

- There's widespread support about what happened to Gamestop stock from left-wingers and anti-capitalist folks.  "Yeah, it's ok when the wealthy elite manipulate stock, but not when a bunch of college kids do it?  I don't think so!"

- We're going to get crowdsourced stuff like this more often, not less. Last year folks used twitter/facebook/discord to organize protests and riots, this year it's "everyone bring your 85 bucks - we're gonna cost Wall Street billions!".

- Some of the ire felt at the Parler/twitter/facebook/amazon bans by one group, is now being felt by another group, as TPTB stepped in and killed a bunch of online organizing places.  Will Reddit be the new Parler?

I'm hoping 2021 will see a return to sanity, but I'm worried it'll be another "may you live in interesting times" year.

 

 

* (Ok, I spend an hour a day on TikTok.  Those are my sources.)

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2 hours ago, NeuroTypical said:

My sources on the street* tell me the following:

- There's widespread support about what happened to Gamestop stock from left-wingers and anti-capitalist folks.  "Yeah, it's ok when the wealthy elite manipulate stock, but not when a bunch of college kids do it?  I don't think so!"

Pretty much. Wall Street's mad that a bunch of poors beat them at their own game. And while I don't think the support of what's happening is as partisan as you say, the schadenfreude is certainly a lot stronger on my side of the political aisle. 

Quote

- We're going to get crowdsourced stuff like this more often, not less. Last year folks used twitter/facebook/discord to organize protests and riots, this year it's "everyone bring your 85 bucks - we're gonna cost Wall Street billions!".

Maybe. I think Wall Street will adapt quickly. RobinHood (the trading service of choice for the Redditors) has already shut down trade of certain stocks due to what they're calling "market volatility". The Reddit investors are MAD. I'm curious to see what transpires today, but I'm worried that some very inexperienced "investors" are going to find themselves in a financial hole.

 

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10 minutes ago, Godless said:

Maybe. I think Wall Street will adapt quickly. RobinHood (the trading service of choice for the Redditors) has already shut down trade of certain stocks due to what they're calling "market volatility". The Reddit investors are MAD. I'm curious to see what transpires today, but I'm worried that some very inexperienced "investors" are going to find themselves in a financial hole.

 

That would be my concern as well. GameStop is a failing company.  Its current valuation is not about what it is worth but more about sticking it to the 'man.'  That only last as long as the outrage does.  Once the little guys start 'cashing out' its going to fall hard, and the ones that are not fast enough are going to get hurt.  Not to mention anyone foolish enough to think now is a good time to buy.

 

 

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3 hours ago, Godless said:

Pretty much. Wall Street's mad that a bunch of poors beat them at their own game. And while I don't think the support of what's happening is as partisan as you say, the schadenfreude is certainly a lot stronger on my side of the political aisle. 

Maybe. I think Wall Street will adapt quickly. RobinHood (the trading service of choice for the Redditors) has already shut down trade of certain stocks due to what they're calling "market volatility". The Reddit investors are MAD. I'm curious to see what transpires today, but I'm worried that some very inexperienced "investors" are going to find themselves in a financial hole.

 

RobinHood was actually caught selling peoples' shares without their permission, so now they're facing both a class-action lawsuit and a Congressional investigation. 

This is all a part of a larger effort to prevent more people from buying shares, leaving the hedge funds to try and force the prices back down. 

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37 minutes ago, Ironhold said:

RobinHood was actually caught selling peoples' shares without their permission, so now they're facing both a class-action lawsuit and a Congressional investigation. 

This is all a part of a larger effort to prevent more people from buying shares, leaving the hedge funds to try and force the prices back down. 

I guess Prince John really needed that money after all. 🤭

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15 hours ago, Ironhold said:

RobinHood was actually caught selling peoples' shares without their permission, so now they're facing both a class-action lawsuit and a Congressional investigation. 

This is all a part of a larger effort to prevent more people from buying shares, leaving the hedge funds to try and force the prices back down. 

From everything I've seen on the Robinhood actions yesterday, it appears that all sides of Congress are calling for an investigation into it.  Both AOC AND Ted Cruz (though, AOC refused to cooperate in a bipartisan way, which really is foolish, reaching across the aisle to work with your opposites in cooperation brings more happiness and unity and gets far more done where everyone can agree upon compromise or other items together) spoke in very concerned notes about the events.

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20 hours ago, NeuroTypical said:

Yep - it absolutely has to go back down, the only question is when.

image.png.0b7224b90ee3ee72b2e9f90ec82d1120.png

Yeesh.  Behold the power of "The street" (aka the peeples, the masses, crowdsourcing, the mob):

image.png.f82596a0dab4bcafd8a7b7e6d76d00b5.png

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A lot of the justifications I’ve seen for this are that a) Melvin was one of the entities that caused the 2008 meltdown (objectively untrue), and b) that it’s somehow wrong to “bet against America” by positioning yourself to make money if the market tanks.  In those respects, I wonder if some of the anger at Melvin is misdirected.

That said:  boo hoo.  The market is risky, options trading riskier still, and shorting . . . explosively so.  And if it’s true that Melvin or other hedge funds have deliberately dumped/bought shares en masse to manipulate prices, then I guess they’re reaping what they’ve sown.  It sounds like most of the Reddit folks understand that at some point they are going to take a bath financially, but they shrug it off as the price of revenge or revolution or what-have-you.  I admire their pluck, and wish them well.  

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12 hours ago, Just_A_Guy said:

A lot of the justifications I’ve seen for this are that a) Melvin was one of the entities that caused the 2008 meltdown (objectively untrue), and b) that it’s somehow wrong to “bet against America” by positioning yourself to make money if the market tanks.  In those respects, I wonder if some of the anger at Melvin is misdirected.

That said:  boo hoo.  The market is risky, options trading riskier still, and shorting . . . explosively so.  And if it’s true that Melvin or other hedge funds have deliberately dumped/bought shares en masse to manipulate prices, then I guess they’re reaping what they’ve sown.  It sounds like most of the Reddit folks understand that at some point they are going to take a bath financially, but they shrug it off as the price of revenge or revolution or what-have-you.  I admire their pluck, and wish them well.  

A few days ago there was a report that the wife of Melvin's CEO had divorced him, possibly as a result of the impending demise of the company.

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