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JSH · 01-28-2021, 02:44 PM

Anyone else watching the Gamestop drama with interest?

For those that don’t know Gamestop is a brick and mortar store that sells video games and other things. Their business has been poor and they are losing a bunch of money and closing hundreds of stores. Since their business is going down the tubes their stock is heavily shorted (a bet that it will go down). Nothing abnormal about that.

Add in an investment chatroom on Reddit called WallStreetBets where small investors / gamblers got together and said “If we all buy Gamestop that will drive the stock price up. The “shorts” will lose a lot of money, they will have to sell their short positions, and the stock will continue to go up. The plan worked and the stock of an failing company is up 1700% year – to –date.

So the question is- how long can a group individual investors organizing on social media pump a stock before it falls apart and people decided to take their profits? Today is looking like it might be the turning point with the stock down 50% as a result of multiple brokers refusing to allow buyers to buy Gamestop and some other stocks that they have been pumping on margin. Robinhood basically said: “Sorry we will no longer loan you money to buy a stock up 1700% in less than a month”.

01-28-2021, 02:44 PM	#1 (permalink)
JSH AKA - Jason Join Date: May 2009 Location: PDX Posts: 3,618 Adventure Seeker - '04 Chevy Astro - Campervan 90 day: 17.3 mpg (US) Thanks: 330 Thanked 2,167 Times in 1,465 Posts	GameStop + Robinhood + Reddit Anyone else watching the Gamestop drama with interest? For those that don’t know Gamestop is a brick and mortar store that sells video games and other things. Their business has been poor and they are losing a bunch of money and closing hundreds of stores. Since their business is going down the tubes their stock is heavily shorted (a bet that it will go down). Nothing abnormal about that. Add in an investment chatroom on Reddit called WallStreetBets where small investors / gamblers got together and said “If we all buy Gamestop that will drive the stock price up. The “shorts” will lose a lot of money, they will have to sell their short positions, and the stock will continue to go up. The plan worked and the stock of an failing company is up 1700% year – to –date. So the question is- how long can a group individual investors organizing on social media pump a stock before it falls apart and people decided to take their profits? Today is looking like it might be the turning point with the stock down 50% as a result of multiple brokers refusing to allow buyers to buy Gamestop and some other stocks that they have been pumping on margin. Robinhood basically said: “Sorry we will no longer loan you money to buy a stock up 1700% in less than a month”.