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Ask HN: How are meme stocks like GameStop and AMC not crashing?
Stock markets are crashing, growth is down 80%, and crypto is going into winter.
How are some meme stocks, namely GameStop, holding up so well? Who continues to buy? Who continues to hold?
- tboyd47 4y agoBecause the "meme" was the force pushing them downward, not upward.
- crhulls 4y agoI'm not sure I follow. The fundamentals of most meme companies are horrible. I don't see how the meme was anything but the thing that caused the share price to divorce from reality, hence the meme was the upward push.
- tboyd47 4y agoYou seem to have it all figured out, but if you want to hear a counterargument, here is one: https://www.youtube.com/watch?v=OARREl39syQ https://www.youtube.com/watch?v=OARREl39syQ
- thagerty 4y agoThis stock, among a few others, is in a tug of war between hedge funds who decided to short it, and the retail investors who bought in hopes of a short squeeze. The hedge funds appear to be doing everything to avoid closing their positions (buying shares), allegedly trying to scare off or tire out the retail investors with odd price fluctuations. Retail appears to be 'hodling,' meaning that the stocks are subject to more than usual market forces. Some hedge funds have recently closed their doors however, possibly signalling an end to the struggle in the near future, as costs of borrowing and limitations on sources of collateral bear down on the hedge funds.