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i am fairly clueless about the stock market, and would love an explanation for the following: there seems to be no discussion about the company’s fundamentals,

i am fairly clueless about the stock market, and would love an explanation for the following: there seems to be no discussion about the company’s fundamentals, it seems to be all about bankrupting hedge funds. That makes no sense to me. Am I being naive here? And in the final analysis, it seems to me like the bigger driver of GME’s stock was not retail redditors, but companies like Vanguard etc. So, this isnt even a David Goliath situation. Some billionaires lost their shirt, and other billionaires made a shit load of money. This is like David standing up to Goliath, until Davids dad comes in and gives Goliath a proper ass whooping. Is this what happened?

imtringued 6y ago
> there seems to be no discussion about the company’s fundamentals, it seems to be all about bankrupting hedge funds. That makes no sense to me. Am I being naive here? The official punchline is "buy high, sell never". A short seller's deepest nightmare is a trader that is behaving extremely irrationally by holding a failing asset and never selling it. You cannot screw such a retail trader by being faster because being slow is the entire point. >And in the final analysis, it seems to me like the bigger driver of GME’s stock was not retail redditors, but companies like Vanguard etc. So, this isnt even a David Goliath situation. Some billionaires lost their shirt, and other billionaires made a shit load of money. This is like David standing up to Goliath, until Davids dad comes in and gives Goliath a proper ass whooping. Is this what happened? Everyone knows that those who will make the biggest gains are those who bought GME when it was in the single digits. Nobody else expects to get rich off of the short squeeze. The irony is that short sellers think that this will be a temporary squeeze and thus all they have to do is short even more and sell the inflated stock to cover their interest and just wait out until all their shorts are in the money again. The problem with this strategy is that you are betting against irrational traders who have zero intention of selling, ever. It's pure entertainment value.
AnimalMuppet 6y ago
The short sellers were shorting with no regard to the company's fundamentals, either. It's all about power and market manipulation on all sides.
- mcv 6y ago
  Exactly. WSB just gave the hedge funds a taste of their own medicine. Good or bad, there's definitely a degree of poetic justice here.

imtringued 6y ago

> there seems to be no discussion about the company’s fundamentals, it seems to be all about bankrupting hedge funds. That makes no sense to me. Am I being naive here? The official punchline is "buy high, sell never". A short seller's deepest nightmare is a trader that is behaving extremely irrationally by holding a failing asset and never selling it. You cannot screw such a retail trader by being faster because being slow is the entire point. >And in the final analysis, it seems to me like the bigger driver of GME’s stock was not retail redditors, but companies like Vanguard etc. So, this isnt even a David Goliath situation. Some billionaires lost their shirt, and other billionaires made a shit load of money. This is like David standing up to Goliath, until Davids dad comes in and gives Goliath a proper ass whooping. Is this what happened? Everyone knows that those who will make the biggest gains are those who bought GME when it was in the single digits. Nobody else expects to get rich off of the short squeeze. The irony is that short sellers think that this will be a temporary squeeze and thus all they have to do is short even more and sell the inflated stock to cover their interest and just wait out until all their shorts are in the money again. The problem with this strategy is that you are betting against irrational traders who have zero intention of selling, ever. It's pure entertainment value.

AnimalMuppet 6y ago

The short sellers were shorting with no regard to the company's fundamentals, either. It's all about power and market manipulation on all sides.

mcv 6y ago
Exactly. WSB just gave the hedge funds a taste of their own medicine. Good or bad, there's definitely a degree of poetic justice here.