Reddittors vs Wall Street

[Bird on a Fire]

No, they were trying to kill it with aggressive short positions and media publications.

Buying shares stopped the company going bankrupt, which would probably have resulted in job losses.

Let me check: do you know that when shares in a company are bought and sold on the open market, the company itself doesn't receive any of the money that changes hands?

Yes, I'm aware there's not a direct link between stock price and a company's fortunes. (I never gave it much thought, but lpm explained well upthread.)

Nevertheless, from the little I've seen (and even less I've probably understood) the change in stock price, and reprieve from imminent insolvency, has allowed GameStop to change its fortunes somewhat. At least, those things seem to have co-occurred, though the importance of what redditors did is perhaps overstated according to the SEC report summarised in the Bloomberg article I posted.

[Grumble]

I’m not a Tesla cheerleader, but you need to realise that unlike other car makers Tesla is also in energy in a big way, so dividing their stock value by the number of cars they sell isn’t really fair. How much of the company value is in cars vs other ventures I’m not sure.

[noggins]

Teslas stock price is f.cking b.llsh.t

[Holylol]

Gamestop is still losing money

https://www.macrotrends.net/stocks/char ... net-income

[jimbob]

Teslas stock price is f.cking b.llsh.t

It has more than doubled its revenues in two years

[noggins]

Whoopie f.cking do

So only say 5 more years of doubling revenue every year and the current value will be justified.

[lpm]

Hedge Funds were short-selling Gamestop (the Blockbuster of video games, apparently), and then "parlaying" those shorts, ie making multiple bets that the stock's value would hit $0. Apparently they were also writing articles and spreading rumours about the company's imminent collapse.

Reddittors found out, and decided to f.ck them over by buying the stock. The value went up from $20 to $250 or something, so the hedge funds have lost many multiples of their short position.

Its worth noting that the "correct" price of an AMC share is about $4, at least that's about what it's been trading at for the past 3 months before the market manipulation. Looks like the pandemic has left the company on the ropes, down from $15 to $20 in 2019.

Thought I'd take a look at how the meme stocks are doing and whether Wall Street has been destroyed or not.

Gamestop went from $20, peaked at around $250, now $80.

AMC went from $4, peaked at $59, now at $10.

So still a very good profit for anyone who got in at the start, but no longer the massive paper profits. Grim for the "hold till you die" bros who got in too late.

I hadn't realised just how memey Tesla stock was. It's showing the same aspects, people who've made a great profit and should be happy, yet are convinced they'll recover their vast paper profit and urge others to buy the dip.

Wall Street still seems to exist. This little adventure wasn't perhaps as world shattering as some people felt at the time.

Another year later and I thought I'd look how they are doing.

Need to be careful, because GameStop did a 4-1 stock split (get 4 shares for every 1 held previously). AMC did a 1-10 reverse split (get 1 share for every 10 held previously). Share prices are restated by dividing by 4 and multiplying by 10 accordingly.

GameStop went from $5, peaked at $80, was $20 in May 2022, is $18 now.

AMC went from $40, peaked at $500, was $100 in May 2022, is $13 now.

The cinema business continues to struggle post-pandemic and the Hollywood strikes don't help. Ironically big hedge funds have made a fortune shorting AMC stock. GameStop continues to make losses, has fired CEO and CFO, and has abandon its mini-adventure into the world of crypto and NFT wallet. It is still loved by its loyal Reddit stock holders who commit to buying games from them, which is what counts at the end of the day.

[dyqik]

AMCs in Boston have been trying to get punters in again, by offering $4 daytime tickets on specific days at the end of the school summer vacations.

The result of that has been mass teenager brawls in cinemas during showings, with evacuations and huge police turnouts.