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This is not great coverage imo. It focuses on retail investors when arguably the big wall street guys had more of a role to play. By overshorting the stock (140
by JoiDegn 6y ago
This is not great coverage imo. It focuses on retail investors when arguably the big wall street guys had more of a role to play. By overshorting the stock (140% of outstanding stocks were shorted) they made themselves vulnerable to what happened afterwards.
The GameStop shares had a couple of things going for it:
- Ryan Cohen who previously sold Chewy.com invested heavily and joined the board
- Higher than expected sales of (legacy) games on discs
- Strong cash position
So WallstreetBets picking up the stock does not come completely out of the blue. I would say the 'Fiasco' has as much to do with Melvin and other short sellers making mistakes as it has to do with retail investors.
- lostphilosopher 6y agoI've seen it claimed that "big Wall Street" was on both sides of this. HFT firms that pay for access to RobinHood's data joined the run on GameStop based on movement on RobinHood adding significant initial dollars to those invested by the Reddit crowd. I don't know enough about this space to know if this is true/possible and my sources so far are "randos on the internet" so I'm not investing (har har har) in the idea, but I'm curious.