Geeks + Gamers › Forums › Community Hub › Current Events › GameStonks
https://www.businessinsider.com/explainer-what-is-going-on-with-gamestop-stock-2021-1
Between January 20 and January 26, GameStop’s stock value leaped from just over $35 per share to north of $140 per share. By January 27, it hit new highs of over $325 per share — an over 8,000% increase from just a few months ago.
But why?
The answer has little to do with GameStop, nothing to do with video games, and a lot to do with a Reddit forum dedicated to playing the stock market.
The forum, named Wall Street Bets, has over 2 million members, and it’s the collective action of those members that appears to be driving up the value of GameStop’s stock. Simply put: As more people buy the stock, its price increases. And there’s no signs of that collective action stopping anytime soon.
Basically, a bunch of Redditors decided to go against the hedge funds and drive up GameStop’s value
More than anything else, the prevailing theme in Wall Street Bets is collective power — enough collective power to push back on the hedge funds and analysts that predicted GameStop’s stock would never reach such heights.
But why? Well because hedge funds and the Wall Street elites have been manipulating people for years. When a stock starts to get big, the media will run a fake story saying “IT’S GOING TO CRASH! SELL NOW!” And of course the people do (because people are gullible), so that the rich people can buy up all of the stock for themselves.
And so, the hedge funds are losing TONS of money because of this GameStop craziness. I’m not a stocks person, so I don’t think I’m qualified to explain how this all works, but I think Tim Pool explains it decently. He begins to describe it at about 10:10 in the video:
I’m not finance person or wall street guy, myself.
So I’m not really going to comment on that part.
What I will say is, I do wish Gamestop would die as a company. Seriously, what freaking purpose does it really serve anymore? It’s a horrible store for gamers, because there are NEVER any deals on games with them, unless it’s garbage tier and shit you really don’t want. Buy a used game? Sure…here’s a literal $2-3 drop in price from a new copy…give me a freaking break! I might as well spend the extra couple bucks and get it new…which is what they of course want you to do.
Trade in? Here’s some measly chump change, but if you pay to be part of our club, we’ll give you more, and then even more if you get it as store credit.
I hate Gamestop. Last time I made a major purchase from them was 2 years ago on Black Friday, and that was only because my PS4 was broken and could not be fixed, so they had a decent deal for the Spider-Man PS4 bundle. Liquidation and trade ins (including the broken Ps4) got it for me on the cheap, but that was a desperate moment going into the holidays with games to play and nothing to play them on. Couple months ago I did get a new controller at one, but controllers cost the same everywhere, so it was was six of one on that purchase.
But Gamestop really is a shitty company. I’ve got two friends who have worked there in the past, and they have told me plenty of horror stories of how poorly it’s managed. They participate largely in all the shill aspects of game reviewing, and I believe they also practice some predatory sales methods when trying to get you to purchase things.
It was better back in the day before all the major game stores literally merged into Gamestop. When you had Software ETC, Babbages, and local small business all competing for your purchase, it was a better time for the gamer who avidly bought games on a regular basis.
I like it. Power to the people. Fuck the elite. We should do stuff like this more often.
But I wonder if some new law is going to come out to “regulate” this kind of “activities” :)
Hedge funds have done this shit for 35 – 40 years.
Now that us plebs have called their bluff they are shitting themselves and crying to the Gropin Joe admin to fix their failure.
Still I wish I knew GS had stocks in Sep last year when it was $15 a share.
I gotta look at the articles written on this, and shake my head.
The professional traders are mad that their bet the stock would go down for their short sellers who had bet against the stocks, was ruined by those who decided to use the “free market” and prop-up the value of those stocks.
Now those same professional are crying fowl and that that is not how they want their “free stock market” to work.
That someone other than them “played” the system, and they were on the losing end, they have to go cry to the media.
How dare people use the “free stock market” to out-play us! ? !
Now those same people are demanding only they can “game the system” by punishing/limiting the free market.
The free stock market has always been an illusion which has been near impossible to expose before the evolution of internet. But now… it’s out there. The elites of Wall Street have been short squeezing and manipulating the stock market left and right forever, but once it’s some random people doing it it’s suddenly problematic. Jordan Belfort had a pretty interesting interview about the topic.
;)
Notifications