This could be the greatest transfer of wealth in the opposite direction. We the people are the winners and the 1% have just had their pockets picked. To those hedge funds who have lost millions just google : FOOD BANKS. The tables have turned and we the people are just getting started... You fuckers on Wall Street have no idea what's coming as our Investment Club of Patriots is growing by the thousands per day.
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I’m a little confused but excited. Happens a lot, I’m a woman lol, are there links anyone can drop me to help a ladypede out? I’ve never invested in anything in my life personally but will to help take these fuckers down.
You and me both. Some Explain like I'm 5 how gamestop stock doing really well hurt hedge fund managers or wherever. They bet against gamestop in some way? I don't get how this works at all.
Edit: Some helpful explanations below but this does a good job with background.
https://www.cnet.com/personal-finance/reddit-and-elon-musk-sent-gamestop-stock-soaring-why-amc-and-blackberry-are-next/
Some hedge funds had a big short on Gamestop. When the stock price exploded, they were forced to sell, either due to margin calls or unavailability of stock to borrow.
I do not 100% understand but I think I can put it in a way for you to understand When someone "shorts" a stock what they are doing is borrowing a stock from someone, for this example lets say 100. What they will do is borrow these 100 shares and sell them. Lets say right now 1 share is worth $10, they sell the 100 shares for $10 each and they net $1,000. The shares were not theirs, they were just borrowing it, they still owe the original person the 100 shares back. What they are betting on is that the price will drop lower than the $10 it was when they sold it. If it drops down to $5 a share, they can buy back the 100 shares at $5 which cost them $500 and return the original borrowed stocks back to the owner. The result is they borrowed 100 shares, sold it, bout it back cheaper and returned the stocks while making $500 to put in their pocket. What is happening here is people are squeezing them, what t his means is more and more people are buying and driving the price up. The hedge funds are required to buy the stocks back at whatever price the share is at the time that the call is made for the original stocks. The people that loaned the stocks need to get them back, so the hedge funds will have to pay whatever price the stock is at so they can do that.
So if this hedge fund loses let's say 2 billions that goes into gamestop?? Because if so this could give the company the chance to bounce back and do some great things
It does not go to Gamestop unless they were buying back their stocks. This is why the r/wallstreetbet people are making money. They are buying shares that keep going up in price. They KNOW the hedge funds will have to buy them back at whatever price they are at when the purchase is made. I do not know the exact ins and outs but there is a certain time frame that the borrowed stocks have to be returned.
One important piece that I gleaned from another comment I read is that there is a time limit to how long they have until they have to return the stock they borrowed. Once that time limit is up, every day they don't return the stock they have to pay interest on it. Some of these funds are paying tens of millions of dollars per day in interest, and they STILL owe the actual stock they originally borrowed.
I kinda understand the concept of the gamestop situation. People have bought more stocks than are actually available. If they all sell at once the company is dead because they don’t have the funds to back up the loss of paying out to everyone at once. Investing and numbers have never been my strong suit. I can grasp the overall concept but as soon as figures come into play my brain short circuits. Was hell in school. I could get the correct answers but couldn’t show my work, so would always fail. Can’t explain it. Was told it’s a type of dyslexia. Always tested off the charts in those bi yearly tests they gave us, but was a drooling idiot in math classes lol.
So basically if we keep doing this to companies we can slowly kill off all these piece of shit companies?
It seems possible to me, but I am completely retarded in this realm
What in God's name does being a woman have to do with investing?
I’m one and don’t know shit, there’s that. Anecdotally, I don’t know any women interested in it or know anything about it. Women generally are more suited to creative aspects less than technical aspects, our brains are wired differently. There are always exceptions, of course.
Ok, respect. I thought it odd because I know more women traders than men. I almost always think of women being better with numbers. My wife (God rest her soul) was an accountant and took care of our finances. She was awesome with investing. I know a quiet librarian who retired at 50 because she did so well with the stock market. On the flip side I had some day trader drinking buddies. They were impulsive and would be up or down hundreds of thousands a day. One ended up killing himself and the other was living under a boat in DC last I heard.
That’s ok, we all have different experiences. I did know one woman now that I thought more about it, from years ago. She was an accountant/investor and money just seemed to magically come to her, lol. She would go to a casino and win a hundred grand and call it pocket money. She was amazing. By and large she was a proverbial unicorn. I can’t think of another woman I’ve known who was interested in investing, worked with numbers, etc. I have known lots of women who were amazing seamstresses, quilters, bakers, crafters, etc. My dad worked with wood, though and was a stay at home dad because of illness, so was the exception. My condolences on your loss, fren.
They've already taken down the hedge fund guys. But they're not out. They'll be fine. Those who will ultimately lose are those who bought the stock at an insanely inflated price. I have no love or hate for GameStop, nor have I ever held any positions in the company. But looking at the financial data on Yahoo Finance, it looks like a company with some real financial challenges.
Is this a process that can be repeated over and over or is this a unique situation? Gamestop as a company has been on the brink of financial disaster for awhile. They had just announced they hired the ceo of Chewy, a pet food online only company. That ceo hates brick and mortar. Gamestop thrives off of brick and mortar because of trade ins and people buying used games, which is their life blood. They announced the closure of 100’s of stores for the first quarter. There’s no conceivable way anyone saw this company surviving past this year. It’s also hated broadly. That’s why it was suffering to begin with.
And that is one of the reasons why hedge funds saw it as such a safe stock to short. I suspect doing something like this again would be harder, because the hedge fund guys would be on the lookout.
That makes sense to me. I’m learning. Thanks to awesome frens like yourself, thanks! I just commented to someone else that I’ve learned more from pedes than I ever have on my own from dry textbook sites or videos. Really appreciate that. It’s like learning to walk for me, lol.
They repeated it again today with AMC. But, yeah, I suppose they can repeat this a few times. However, there will definitely be a point where the little guys are going to run out of crash to throw at these endeavors. Those folks who pushed GameStock to $350 will want to sell at some point and it might be at $0, given GameStock really is having financial trouble. But, perhaps if enough people feel that losing $300 or $1000 is worth it to stop these short-sellers from killing stocks, fine. I have seen these short-sellers utterly destroy companies before and it's really sad. Those who have been playing these games for decades usually make millions of dollars by shorting and then somebody (maybe even affiliates) buys the carcass for scraps and use the trademarks or whatever to make even more money. It's pathetic. Personally, I'm glad to see the little guy take a stand, but I do not see this as sustainable. (I wish Congress would ban short selling. That would solve a lot of problems.)
I wasn’t aware they did this to AMC, also. I’m all for sticking it to vampires. And if it makes Congress get off their lazy asses and actually earn the cushy paycheck we afford them, even better. We can be antiheroes all day, everyday if need be. They made the mistake of giving us too much free time to come up with ways to fuck with them and of pissing us off.
I have so many questions. How do you bet against a stock and make money?
it's called a short squeeze.