3 ms·

Sure, but irrational enough not to short a $6 stock priced at $300?

gmadsen 6y ago
just because it was held at $6, doesn't mean that is the fair market price. These Hedge funds had significant incentive to bankrupt this company. 300+ is most likely a bubble, but $50-$90 is completely reasonable looking at the fundamentals. And besides, traditional wall street fundamentals are not the end all be all of a stocks value. Tesla is living proof of that.
- TylerE 6y ago
  What fundamentals? Retail is a liability, and they're retail that's ESPECIALLY being eaten alive by online.
  - Clewza313 6y ago
    The bull case is that GME's own online revenue is trending up and that they're well positioned to grow more. I personally don't buy it, particularly at $300 a share, but GME is not entirely bricks & mortar.
  - flatline 6y ago
    This was at least part of the catalyst: https://m.youtube.com/watch?v=alntJzg0Um4 https://m.youtube.com/watch?v=alntJzg0Um4 I don’t fully buy it either but it’s not irrational. GameStop still sells a lot of games. Online is gradually taking over but it has been for what 20 years now and people still go to the store and consoles still have disk drives. B&M is not going away any time soon, and in some ways I think the hardest hits have already come and gone, what’s left now is likely to stay.
    - cameldrv 6y ago
      Some consoles have disk drives. Playstation released their "Digital Edition" Playstation 5 which doesn't have a disk drive, and Microsoft released the Xbox Series S which also doesn't have a disk drive. Phones and tablets never did have disk drives, and the gaming market on them is large. I think it's pretty clear that the days of physically buying games are quickly coming to an end. Years ago there were chains of computer software stores, and long after that, stores like Best Buy had huge computer software sections. The same thing will happen to games now that every console is connected to high speed internet. Gamestop has lost money for the past two years, and it only shows signs of getting worse.
  - bsder 6y ago
    > Retail is a liability, and they're retail that's ESPECIALLY being eaten alive by online. Retail may be a liability. But real estate is not. GameStop has small stores that should shut down. However, they also a not insignifcant number bigger stores that can become "gaming places" once we get Covid under control. Being a "Safe place for Mom to drop the kids to play Pokemon" has real value. Not everything must be online.
    - TylerE 6y ago
      Do they own real estate? Every GS I’ve ever seen is in a strip mall, where they are surely renting.
      - bsder 6y ago
        Yes, they do. But more in areas where real estate is cheap like the Midwest.
- gregable 6y ago
  Perhaps, pick your favorite number. I think it's pretty clear nobody believes fundamentals support $300 though. Was wondering why market short pressure doesn't prevent it from getting that high.
  - simplemen 6y ago
    At this point, no broker is lending gme to retail investors. However, if you are market maker, you should be able to short it still.
pishpash 6y ago
You need unknowable amounts of capital to pull this off. $300 could be $600 tomorrow (as example).

just because it was held at $6, doesn't mean that is the fair market price. These Hedge funds had significant incentive to bankrupt this company. 300+ is most likely a bubble, but $50-$90 is completely reasonable looking at the fundamentals. And besides, traditional wall street fundamentals are not the end all be all of a stocks value. Tesla is living proof of that.

TylerE 6y ago
What fundamentals? Retail is a liability, and they're retail that's ESPECIALLY being eaten alive by online.
- Clewza313 6y ago
  The bull case is that GME's own online revenue is trending up and that they're well positioned to grow more. I personally don't buy it, particularly at $300 a share, but GME is not entirely bricks & mortar.
- flatline 6y ago
  This was at least part of the catalyst: https://m.youtube.com/watch?v=alntJzg0Um4 https://m.youtube.com/watch?v=alntJzg0Um4 I don’t fully buy it either but it’s not irrational. GameStop still sells a lot of games. Online is gradually taking over but it has been for what 20 years now and people still go to the store and consoles still have disk drives. B&M is not going away any time soon, and in some ways I think the hardest hits have already come and gone, what’s left now is likely to stay.
  - cameldrv 6y ago
    Some consoles have disk drives. Playstation released their "Digital Edition" Playstation 5 which doesn't have a disk drive, and Microsoft released the Xbox Series S which also doesn't have a disk drive. Phones and tablets never did have disk drives, and the gaming market on them is large. I think it's pretty clear that the days of physically buying games are quickly coming to an end. Years ago there were chains of computer software stores, and long after that, stores like Best Buy had huge computer software sections. The same thing will happen to games now that every console is connected to high speed internet. Gamestop has lost money for the past two years, and it only shows signs of getting worse.
- bsder 6y ago
  > Retail is a liability, and they're retail that's ESPECIALLY being eaten alive by online. Retail may be a liability. But real estate is not. GameStop has small stores that should shut down. However, they also a not insignifcant number bigger stores that can become "gaming places" once we get Covid under control. Being a "Safe place for Mom to drop the kids to play Pokemon" has real value. Not everything must be online.
  - TylerE 6y ago
    Do they own real estate? Every GS I’ve ever seen is in a strip mall, where they are surely renting.
    - bsder 6y ago
      Yes, they do. But more in areas where real estate is cheap like the Midwest.
gregable 6y ago
Perhaps, pick your favorite number. I think it's pretty clear nobody believes fundamentals support $300 though. Was wondering why market short pressure doesn't prevent it from getting that high.
- simplemen 6y ago
  At this point, no broker is lending gme to retail investors. However, if you are market maker, you should be able to short it still.

pishpash 6y ago

You need unknowable amounts of capital to pull this off. $300 could be $600 tomorrow (as example).