843 upvotes, 10 direct replies (showing 10)
If anyone is curious, there IS a precedent for this happening the market (minus the reddit parts) with Volkswagen in 2008 where it was the most valuable stock in the world for like a day. It has happened before, and so long as firms will massively short stocks it will probably happen again.
Comment by TotesHittingOnY0u at 27/01/2021 at 13:22 UTC
149 upvotes, 4 direct replies
What happened after that day?
Comment by markerAngry at 27/01/2021 at 16:33 UTC
85 upvotes, 5 direct replies
For anyone reading - if this happens, GameStop’s stock price would be 30k+ a share.
Comment by RaptorAD77 at 27/01/2021 at 22:22 UTC
8 upvotes, 0 direct replies
This may be different because there’s no Porsche tightening the stock supply, it’s retailers and pensions funds and Blackrock and whatnot holding on to a meager supply of stocks. The scarcity was started off by GME who did share buybacks at $4-$5 last year.
There’s too many players in the game. Once $115 was broken and 2 billions shorts were OTM, it was a race to see how high shareholders would hold. There is no incentive to sell because $500 is actually possible, $300 is now the comfortable price and WSB is holding out for life. It seems ridiculous but if everyone holds their shares, it is not out of the question. Why would you sell this Friday at $500 knowing that a billion more short positions are expiring next week and you could get $700? Then why would you sell at $700 when you can get $1000 next week or to whatever the price shoots up? Short sellers are getting bled out, and what looked like cheap moves last year on GME is beginning to cost a lot.
The squeeze potential is unknown because there are still a LOT of shorted shares in the long position. Even after a triple increase, short sellers are doubling down or getting out of the game and selling it to other short sellers who are taking the risk or a bubble with GME shorted 138%.
GME could also issue shares right now or share rights and put 3-10 billion dollars in the bank. They better call Elon Musk and get his brokerage firm to do those contracts because TSLA, in a similar position, took the shorts to the cleaners as well although I think they only had 20% stocks shorted, not as high as GME.
I think this is an interesting run up that’s not going to end soon as long as short sellers keep staying in the game. I thought it was over on Friday and I was ready to take my profits, but I decided to stay because short interest remained high even after all the losses.
I do have a little skin in the game, I’ve invested 1k and now I’m up 27k, the squeeze isn’t over until the short interest goes down.
Comment by [deleted] at 28/01/2021 at 01:09 UTC
3 upvotes, 0 direct replies
Shorting should be illegal.
Comment by deadeye_jb at 27/01/2021 at 21:06 UTC
2 upvotes, 1 direct replies
What day will it happen again? I’d like to buy-in this time.
Comment by YARGLE_IS_MY_DAD at 27/01/2021 at 05:11 UTC
-67 upvotes, 3 direct replies
Pump and dumps aren't rare. What makes this one special is that a bunch of losers threw their stimulus at a dying company and caused some rich losers to lose a ton of money
Comment by Gogo202 at 27/01/2021 at 19:27 UTC
0 upvotes, 0 direct replies
This is ridiculously wrong. There was a reason why Volkswagen stock went up. It was a failed takeover attempt if I remember correctly. It's nothing remotely comparable
Comment by Dense_Phrase9856 at 27/01/2021 at 23:09 UTC
1 upvotes, 0 direct replies
Bear raid in crypto organized by Zeus Capital against LINK blew up in spectacular fashion.
Comment by Ok-Wishbone-3621 at 28/01/2021 at 15:35 UTC
1 upvotes, 0 direct replies
Look into the housing crisis of 2007. A lot of people lost their homes as their mortgages flipped. About 10 years later, having done very little, banks sold those properties again at twice, sometimes 3x the value of the property.
Comment by FlutterflyStore at 31/01/2021 at 02:05 UTC
1 upvotes, 0 direct replies