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I’ve been following this for a few months and it’s really interesting to me that retail investors could actually have this sort of influence on a non penny stoc

I’ve been following this for a few months and it’s really interesting to me that retail investors could actually have this sort of influence on a non penny stock. Given the high volume of trading, it doesn’t seem like there would be enough buyers to drive the price up this high, and institutional buyers I would think are staying away from something that seems to move so far away from its fundamentals. This is very different from the run up in Signal Advance caused by Musk’s tweet or people buying the wrong Zoom stock. There is very real volume here.

chovybizzass 6y ago
well it just dumped.
- toomuchtodo 6y ago
  You should expect a high amount of volatility for this symbol considering it's high profile currently (Reddit WSB, Bloomberg front page, etc). Disclosure: Long GME.
  - woah 6y ago
    What’s the actual long GME hypothesis? From WSB, I’ve read 3 things 1. Ryan Cohen joins board. Ok, I like chewy.com but having this one dude on the board is really worth 20x in the company’s value? 2. They plan to sell PC parts. Again, really? And right before a bunch of new consoles are released? 3. People have some vague idea that they might start a Steam competitor. Does GameStop have any expertise, talent, or IP to do this? The only thing they bring to the table is their trademark, and it’s not really a great one.
    - seabird 6y ago
      Long just means "not short", and not that they think GME is currently at a reasonable price. No rational actor in this situation believes that.
      - sushid 6y ago
        Long means that they're holding shares or call options. Not sure why you're redefining a well-known term on the parent commenter's behalf.
        seabird 6y ago
        I haven't redefined anything; your definition of "long means that they're holding shares or call options" is completely in agreement with my statement that "long just means not short." The parent seems to be conflating having a long position and believing in the long-term performance of the company. They're asking about long-term changes in GameStop's business when the person he's asking about this could very well be planning on being long in GME for the duration of this squeeze (or the most extreme parts of it) and bailing in the next 1-4 weeks after it has played out.
        sokoloff 6y ago
        Long doesn't "just mean not short". There are 500 symbols in the S&P 500 that I'm "not short". I'm also "not long" 500 of those same symbols.
        seabird 6y ago
        That's true, but I think it's a very fair assumption that the parent of my initial comment realizes that the grandparent has a position, considering that they're asking why they took that position.
        woah 6y ago
        You are correct
    - deleted 6y ago
      [deleted]
    - mcv 6y ago
      The 20x value doesn't come from Ryan Cohen, it comes from short-sellers being in too deep. Short-sellers have to buy in order to close their short, and that's guaranteed, and from what I understand, very inelastic demand. That's the real path to profit here: short-sellers having no option but to buy ridiculously overpriced shares in order to settle their shorts.
- Miner49er 6y ago
  No it hasn't? At least I wouldn't call being up 40%+ in a day a dump.
scsilver 6y ago
I think that the startups like plaid who enabled quick easy bank deposits, has opened the flood gates of saving accounts into the market.
ffggvv 6y ago
wouldnt. be surprised if there is secretly some big names also buying but pointing the finger to WSB
sombremesa 6y ago
It isn't just retail investors. Rational buyers (including institutions and algorithms) would purchase this stock if they believe there are people they can unload it onto at a higher price. Now think about the second order consequences of that — the buying frenzy will continue until the bubble bursts.

chovybizzass 6y ago

well it just dumped.

toomuchtodo 6y ago
You should expect a high amount of volatility for this symbol considering it's high profile currently (Reddit WSB, Bloomberg front page, etc). Disclosure: Long GME.
- woah 6y ago
  What’s the actual long GME hypothesis? From WSB, I’ve read 3 things 1. Ryan Cohen joins board. Ok, I like chewy.com but having this one dude on the board is really worth 20x in the company’s value? 2. They plan to sell PC parts. Again, really? And right before a bunch of new consoles are released? 3. People have some vague idea that they might start a Steam competitor. Does GameStop have any expertise, talent, or IP to do this? The only thing they bring to the table is their trademark, and it’s not really a great one.
  - seabird 6y ago
    Long just means "not short", and not that they think GME is currently at a reasonable price. No rational actor in this situation believes that.
    - sushid 6y ago
      Long means that they're holding shares or call options. Not sure why you're redefining a well-known term on the parent commenter's behalf.
      - seabird 6y ago
        I haven't redefined anything; your definition of "long means that they're holding shares or call options" is completely in agreement with my statement that "long just means not short." The parent seems to be conflating having a long position and believing in the long-term performance of the company. They're asking about long-term changes in GameStop's business when the person he's asking about this could very well be planning on being long in GME for the duration of this squeeze (or the most extreme parts of it) and bailing in the next 1-4 weeks after it has played out.
        sokoloff 6y ago
        Long doesn't "just mean not short". There are 500 symbols in the S&P 500 that I'm "not short". I'm also "not long" 500 of those same symbols.
        seabird 6y ago
        That's true, but I think it's a very fair assumption that the parent of my initial comment realizes that the grandparent has a position, considering that they're asking why they took that position.
        woah 6y ago
        You are correct
  - deleted 6y ago
    [deleted]
  - mcv 6y ago
    The 20x value doesn't come from Ryan Cohen, it comes from short-sellers being in too deep. Short-sellers have to buy in order to close their short, and that's guaranteed, and from what I understand, very inelastic demand. That's the real path to profit here: short-sellers having no option but to buy ridiculously overpriced shares in order to settle their shorts.
Miner49er 6y ago
No it hasn't? At least I wouldn't call being up 40%+ in a day a dump.

scsilver 6y ago

I think that the startups like plaid who enabled quick easy bank deposits, has opened the flood gates of saving accounts into the market.

ffggvv 6y ago

wouldnt. be surprised if there is secretly some big names also buying but pointing the finger to WSB

sombremesa 6y ago

It isn't just retail investors. Rational buyers (including institutions and algorithms) would purchase this stock if they believe there are people they can unload it onto at a higher price. Now think about the second order consequences of that — the buying frenzy will continue until the bubble bursts.