lpm wrote: ↑Thu May 12, 2022 1:25 pm
Bird on a Fire wrote: ↑Thu Jan 28, 2021 12:31 am
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.
lpm wrote: ↑Sat Jan 30, 2021 9:28 am
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.