5 ms·
Because a bunch of people don't understand how the market work. like all these people who think they're buying GME stock is going to save GameStop, cuz they so
by Kocrachon 6y ago
Because a bunch of people don't understand how the market work.
like all these people who think they're buying GME stock is going to save GameStop, cuz they somehow think that GameStop get some of the money from their stock purchases... So yeah I really don't know what the heck is going on in people's minds right now.
- calyth2018 6y agoWhy does anyone want to save GameStop? They're pretty notorious for shit CS and shit trade-in prices. Or is this just people who are at the generation where they don't actually remember GameStop's actual practices and wax nostalgic about it?
- mortehu 6y agoRe trade-ins, should GameStop even be allowed to buy back games after selling them to you? That's like short selling.
- mweberxyz 6y agoIt's just normal selling. If I borrow a game from my friend in order to sell it to GameStop, anticipating the re-sale price will be lower then the trade in price, so I can give the game back to my friend and take a profit -- would be like short selling.
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- mortehu 6y agoThat's a specific type of shorting. In financial markets you can also enter swap agreements, or sell futures or call options. The key is that GameStop seeks to profit from price depreciation. Just for fun we could imagine GameStop seeks to buy back every game it sells, and that games don't intrinsically decay because they're digital and the packaging is worth zero. Come to think of it, if games are pre-ordered it's even closer to what could reasonably be considered a short.
- hntrader 6y agoThey can get some of the money, indirectly, through an offering. The price on the secondary market drastically changes a listed company's fundraising prospects.
- MegaButts 6y agoThey don't think they'll save GameStop and almost nobody cares. They just want to see hedge funds lose money, and they've already lost billions so many have already objectively succeeded. They also love to see Jim Cramer have meltdowns, which is almost every day now. If you want to hate on /r/wsb that's fine (there are many legitimate reasons to hate that subreddit), but don't pretend to understand something you clearly don't.
- klmadfejno 6y agoJim Cramer must hate it when people watch his show
- kminehart 6y agoHere's my hot take: they're victims of a pump-and-dump, only instead of enticed by the promise of a get-rich-quick scheme, they're experiencing groupthink while people encouraging and controlling this narrative are running away to the bank.
- MegaButts 6y agoThere is definitely a ton of shilling on /r/wsb and people outside thinking there is any single collective entity are ridiculously wrong. Some people are pushing pump and dumps to make money. Some are ignorantly following along. Some genuinely treat it like a gambling addiction and enjoy it. The GME thing though is unique, and there really is a narrative to hurt hedgies (in addition to all of the above).
- jjoonathan 6y agoYep. One hedge fund lost billions while a dozen more who could spare the effort to model these pumps made away with every penny the "rebels" spent!
- throwaway5752 6y agoYes, those are very bad investing reasons. And while it feels like a game, they are investing with real money. It's not just entertainment. They will end up making different hedge funds richer, and will only end up poorer and more resentful in the end.