Why Did Reddit Trigger a GameStop Stock Surge?

[Astronuc]

Is that what's going on?

It's pretty clear what GME's thinking is: it's easier to sell stock than to sell games.

I wasn't referring to GME, but to those who bought GME expecting it to go up. FOMO?

What GME did is expected - take advantage of those expressing 'irrational exuberance'.

 

[Vanadium 50]

Sure - if someone says to me "Here's $25 for a share of your profits - but you don't have to actually give me any of your profits" what do you expect me to say? Besides "Are you sure you only want one?"

If someone wants to bet money that they can buy something worthless and sell it for more to someone else who thinks the same thing, I say have at it. Try not to be the guy at the end of the chain, though. I might ask them if they want some tulip bulbs.

 

[russ_watters]

It's pretty clear what GME's thinking is: it's easier to sell stock than to sell games.

They are selling a video game. It's called GME. It's an educational game. It teaches people about the stock market/"investing", particularly the risk of loss when investing in a dying company. Also, the ultimate futility of manipulation.

Hopefully most of the players are only spending a few hundred dollars on it.

As for GameStop, they must already know how this works. They'll keep selling this game until the userbase loses interest. Unfortunately they don't have development team working on the next game.

If someone wants to bet money that they can buy something worthless and sell it for more to someone else who thinks the same thing, I say have at it.

Apes don't sell, they only buy. The winners are ones who still hold GME when the game ends. People who sell before that are weak or worse, traitors.

The game involves some intestinal fortitude.

 

[Astronuc]

(Reuters) - Citron Research no longer has a short position in retail traders' favorite GameStop, the short seller said on X.com on Wednesday, days after taking a bearish position in the company.

"It's not because we believe in a turnaround for the company fundamentals will ever happen, but with $4 billion in the bank, they have enough runway to appease their cult like shareholders," Citron said in the tweet.

Andrew Left, Citron Research's founder, had said last week he was again betting against GameStop, although his position was "significantly lower" from 2021 when he was forced to close his position after retail traders banded together in online forums and drove an eye popping rally in the stock, squeezing hedge funds.

Left told Reuters he would short GameStop again if the stock reached a $45-$50 level. He said Citron closed the short position at a profit, although he did not disclose the size.

GameStop said it had raised $2.14 billion in gross proceeds from the stock sale it announced last week, after raising $933.4 million in May, as it capitalized on the meme stocks rally sparked by the return of stock influencer "Roaring Kitty" Keith Gill following a three-year hiatus.

https://finance.yahoo.com/news/citron-research-closes-gamestop-short-133529622.html

Benzinga has a headline "Short Seller Citron Closes Short Position In GameStop, Says 'It Respects Market's Irrationality' "

 

[Vanadium 50]

The funny thing is that if the same "Save Game Stop" crowd were to have bought games instead of stock, the company might have turned around.

 

[Astronuc]

Reuters - ‘Roaring Kitty’ Sued Over Alleged GameStop ‘Pump and Dump’
https://finance.yahoo.com/news/roaring-kitty-sued-over-alleged-142121005.html

(Bloomberg) -- Popular stocks influencer Keith Gill, better known as “Roaring Kitty,” was sued for allegedly orchestrating a “pump and dump” scheme involving GameStop Corp. shares.


Gill, who rose to fame promoting GameStop during the 2021 meme-stock craze, reemerged in May and again began posting about the games retailer on X, the social media platform formerly known as Twitter.

In a proposed class action filed Friday in Brooklyn, New York, federal court, GameStop shareholder Martin Radev claims Gill was seeking to manipulate the stock for his own gain.

Posts by Gill starting on May 13 propelled a 180% rise in GameStop shares. On June 2, he revealed that he owned 5 million shares of GameStop and 120,000 call options that were set to expire on June 21. By June 13, Gill’s holdings had risen to more than 9 million shares of GameStop with no outstanding call options.

 

[Vanadium 50]

Well, that didn't last long. The plaintiff withdrew.

IMO, if things are as alleged, it looks more criminal than civil. If you are telling people to buy when you are selling, the nice men in suits from DC might want to have a word or two with you.