2 ms·
> GMEs share price is out-of-whack because some market participants are making decisions based off what they believe the fundamental value to be, and other mark
by throw0101a 6y ago
> GMEs share price is out-of-whack because some market participants are making decisions based off what they believe the fundamental value to be, and other market participants are ignoring the fundamentals and buying at any price.
GME's share price may be out-of-whack to those interested in the retail business.
But to the people who have (shorting) options contracts to fulfill then the share price may be reasonable, as the alternative to these people is to renege on a contract, which could bring all sorts of unappealing consequences. GME having a price of even $1000/share may be "cheap" to these people.
The same item can be valued differently by various individuals, each for their own particular reasons. This is what auctions are all about.