6 ms·

Wow, it pays to be a meme stock. This means that memes could really be an untapped trillion dollar industry if they’re able to drastically raise the social cap

by xwdv 6y ago

Wow, it pays to be a meme stock. This means that memes could really be an untapped trillion dollar industry if they’re able to drastically raise the social capital of damn near anything, which can be used for profit purposes.

toomuchtodo 6y ago
Equity markets are the new GoFundMe. You even get a chance at a return.
- hervature 6y ago
  It's the original GoFundMe.
- sitkack 6y ago
  Low Orbit SPAC Cannon
dehrmann 6y ago
Remember the Hertz story in June? They were thinking about issuing shares. I dunno, it seems like meme stocks are in that position because they're small-cap companies facing significant headwinds and either got overshorted or have enough brand recognition that retail investors seem convinced they'll survive. I'd rather not be in the position of facing the headwinds and hoping a bunch of suckers show up who will give me money. What's funny is this is pointing out big holes in the "but it's 150% shorted" story. The retail buy/sell order flow seemed pretty balanced on Thursday according to Citadel, so there isn't much HODL. If the price holds for much longer, Gamestop can issue more shares, and holders of convertable debt are converting, likely selling the shares ASAP. I guess they squeezed some shorts, some more shorts probably moved in, and some of the money goes to debt holders, and some might go to the company. Some of it makes for a good story, but I wouldn't be surprised if PE and hedge funds quietly come out ahead in aggregate.
- xwdv 6y ago
  I would love to see how irrational the market can get. I think we will see the limits of what is possible pushed in this century. I’m bullish!
- rsynnott 6y ago
  Oh, they weren't just THINKING about it: https://www.wsj.com/articles/hertz-sold-29-million-in-stock-before-sec-stepped-in-11597100128 https://www.wsj.com/articles/hertz-sold-29-million-in-stock-...
  - dehrmann 6y ago
    (not sarcastic) Good for them!
- snomad 6y ago
  > What's funny is this is pointing out big holes in the "but it's 150% shorted" story. Not sure I follow. The hedge funds are shorting the stock, debt holders are converting to stock, Retail (and plenty of big players) are buying and holding. 3 different parties.
  - PragmaticPulp 6y ago
    The "150% shorted" narrative has been deliberately misrepresented. WSB wants everyone to think that there are 150% short positions and only 100% long positions. In reality, each short creates a synthetic long, so there are always more long positions than short positions. WSB also seems to misunderstand the short interest. They're pushing the idea that short interest must start going down to indicate the squeeze has started. They're not accounting for (or deliberately ignoring) the fact that new short positions can be initiated at $360 which will be profitable when the stock inevitably falls. Reddit can't keep the stock high forever with a never-ending stream of buyers. That's why they've now shifted to pushing the narrative that everyone should buy and hold $GME to hurt Wall Street, which isn't really true either. WSB is also pushing the narrative that everyone is holding (or hodling) $GME shares and refusing to sell. This is perhaps the strangest claim of all, since it's so easily debunked by looking at the huge daily volume of shares traded. Shares can't be traded unless a buyer and seller agree on a price. The volume is extremely high, which means plenty of people are selling their $GME all day every day. WallStreetBets has devolved into a blatant pump-and-dump megaphone.
mr_toad 6y ago
Is this Poe’s law in action? Honestly can’t tell if you’re just being sardonic.
- jiofih 6y ago
  No, he’s being sardine.
gruez 6y ago
>which can be used for profit purposes. Never underestimate how much money people are willing to spend just to fuck over other people ("hedge funds") or to get rich quick.
nickysielicki 6y ago
All of this is the symptom of a deeply troubled economy that has been propped up by low interest rates for far too long. There's nothing to learn from this, because there is no way to fit the deeply irrational notion of "meme stonks" into an ideally rational market. Corrections are coming.
imiric 6y ago
Memes are definitely used for profit already. Just ask any marketing department of a major company. They probably spend as much on astroturfing as they do on traditional advertising. And not only for marketing, memes are a powerful tool used by agencies and governments for propaganda.

by xwdv 6y ago

toomuchtodo 6y ago

Equity markets are the new GoFundMe. You even get a chance at a return.

hervature 6y ago
It's the original GoFundMe.
sitkack 6y ago
Low Orbit SPAC Cannon

dehrmann 6y ago

Remember the Hertz story in June? They were thinking about issuing shares. I dunno, it seems like meme stocks are in that position because they're small-cap companies facing significant headwinds and either got overshorted or have enough brand recognition that retail investors seem convinced they'll survive. I'd rather not be in the position of facing the headwinds and hoping a bunch of suckers show up who will give me money. What's funny is this is pointing out big holes in the "but it's 150% shorted" story. The retail buy/sell order flow seemed pretty balanced on Thursday according to Citadel, so there isn't much HODL. If the price holds for much longer, Gamestop can issue more shares, and holders of convertable debt are converting, likely selling the shares ASAP. I guess they squeezed some shorts, some more shorts probably moved in, and some of the money goes to debt holders, and some might go to the company. Some of it makes for a good story, but I wouldn't be surprised if PE and hedge funds quietly come out ahead in aggregate.

xwdv 6y ago
I would love to see how irrational the market can get. I think we will see the limits of what is possible pushed in this century. I’m bullish!
rsynnott 6y ago
Oh, they weren't just THINKING about it: https://www.wsj.com/articles/hertz-sold-29-million-in-stock-before-sec-stepped-in-11597100128 https://www.wsj.com/articles/hertz-sold-29-million-in-stock-...
- dehrmann 6y ago
  (not sarcastic) Good for them!
snomad 6y ago
> What's funny is this is pointing out big holes in the "but it's 150% shorted" story. Not sure I follow. The hedge funds are shorting the stock, debt holders are converting to stock, Retail (and plenty of big players) are buying and holding. 3 different parties.
- PragmaticPulp 6y ago
  The "150% shorted" narrative has been deliberately misrepresented. WSB wants everyone to think that there are 150% short positions and only 100% long positions. In reality, each short creates a synthetic long, so there are always more long positions than short positions. WSB also seems to misunderstand the short interest. They're pushing the idea that short interest must start going down to indicate the squeeze has started. They're not accounting for (or deliberately ignoring) the fact that new short positions can be initiated at $360 which will be profitable when the stock inevitably falls. Reddit can't keep the stock high forever with a never-ending stream of buyers. That's why they've now shifted to pushing the narrative that everyone should buy and hold $GME to hurt Wall Street, which isn't really true either. WSB is also pushing the narrative that everyone is holding (or hodling) $GME shares and refusing to sell. This is perhaps the strangest claim of all, since it's so easily debunked by looking at the huge daily volume of shares traded. Shares can't be traded unless a buyer and seller agree on a price. The volume is extremely high, which means plenty of people are selling their $GME all day every day. WallStreetBets has devolved into a blatant pump-and-dump megaphone.

mr_toad 6y ago

Is this Poe’s law in action? Honestly can’t tell if you’re just being sardonic.

jiofih 6y ago
No, he’s being sardine.

gruez 6y ago

>which can be used for profit purposes. Never underestimate how much money people are willing to spend just to fuck over other people ("hedge funds") or to get rich quick.

nickysielicki 6y ago

All of this is the symptom of a deeply troubled economy that has been propped up by low interest rates for far too long. There's nothing to learn from this, because there is no way to fit the deeply irrational notion of "meme stonks" into an ideally rational market. Corrections are coming.

imiric 6y ago

Memes are definitely used for profit already. Just ask any marketing department of a major company. They probably spend as much on astroturfing as they do on traditional advertising. And not only for marketing, memes are a powerful tool used by agencies and governments for propaganda.