Should social media traders have pumped up GME stock price?
Apr 11, 2022 · Video-game retailer GameStop (NYSE: GME) is known on Wall Street for being the target of a Reddit -fueled short squeeze in 2021. So, some onlookers might have expected GME stock to zoom higher...
Is GameStop stock headed higher after its upcoming share split?
Jan 28, 2021 · The only reason GameStop ( NYSE: GME ) is worth 245.00 right now is because that’s what people think it’s worth. If they didn’t think it was worth this amount of money it wouldn’t be trading here, it would be trading at $10.00, …
Why did GameStop’s stock skyrocket 15% Thursday after-market?
Aug 24, 2021 · GME stock saw over 14 million shares swap hands against a daily average of 5.3 million; meanwhile, AMC saw 221 million shares trade against an average of 169 million. Meme Stocks Mania Takes Off ...
Can you still buy GME stock?
Yes, you can trade GME stock, but be careful. The stock is now available for trading at all major brokerages.Dec 9, 2021
Is GME stock dropping?
Shareholders of GameStop ( GME 0.99% ) lost ground to the market on Thursday as the stock fell 3% by 11 a.m. ET compared to a 0.4% drop in the wider S&P 500. The decline added to significant short-term losses for investors. GameStop's shares are down over 20% so far this year compared to an 8% drop for the market.Mar 3, 2022
What happened to GameStop stock in 2021?
Stocks of video game retailer GameStop exploded in January 2021, effectively doubling in value on a daily basis. At the close of trading on January 27, GameStop Corporation's stock price reaching 347.51 U.S. dollars per share - or +134 percent compared to the day before.Jan 31, 2022
Is GME still being shorted?
The dollar volume shorted in GME stock at the end of January 2021 was $4.1B and has since decline significantly. Today, about 24% of GameStop's float remains collectively shorted by different investors. Most of them are likely still hedge funds but it remains unclear at what point a short position was initiated.Feb 12, 2022
Why is GME dropping so much?
As seen in recent days, GameStop stock GME has been affected by the stock market's latest round of volatility. Due to news of the Covid-19 Omicron variant, plus talk from the Federal Reserve about an end to its “easy money” policies, stocks across-the-board have declined since late November.Dec 7, 2021
How many GME shares are left?
Share StatisticsAvg Vol (3 month) 34.76MAvg Vol (10 day) 37.31MShares Outstanding 576.35MImplied Shares Outstanding 6N/AFloat 862.49M7 more rows
Who shorted GameStop?
Mohammad Hormozzadeh, a 31-year-old day trader in Brooklyn, N.Y., was one of those investors who directly registered shares. He expects the big short squeeze to hit GameStop later this year.Feb 5, 2022
Did GameStop short squeeze happen?
In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers.
Is GME a good stock to buy?
GameStop (ticker: GME), the original meme stock, has been one of the best performers this year. Its shares have gained 707% to $152.14 in 2021, easily outpacing the S&P 500's 26% rise and the Dow Jones Industrial Average's 17% gain.Dec 27, 2021
Is Moass possible?
The recipe for a MOASS This is only possible in the very short term and due to technical gaps in trading, as transactions take days to clear the system.Jan 7, 2022
Will the AMC squeeze happen?
While it's unlikely that a major short squeeze will happen, considering AMC's current trading volume, it's still possible that minor short squeezes may occur thanks to rising short interest. Co-producer of The Street's financial channels: Apple Maven, Amazon Maven and Wall Street Memes.Feb 16, 2022
Is GME undervalued?
The Verdict: At today's price, GameStop stock appears to be extremely overvalued based on a sampling of common fundamental valuation metrics.Nov 5, 2021
Meme Stocks Mania Takes Off Again With GME, AMC Bull Runs
The trading volume is triggering another short squeeze between the two stocks; GME has 17% of its float sold short, while 16% of AMC’s float is short. As a result, GME stock soared a whopping 27% in the afternoon, and AMC grew over 20%.
Does It Make Sense to Love Your Investments and Become Emotionally Attached?
Does it make sense to love your investments and become emotionally attached? Financial Freedom Wealth Management Group Founder & CEO Julia Carlson joins Jill Malandrino on Nasdaq TradeTalks to discuss.
The Start
In early 2019, to everyone except a few Wall Street Bets (WSB) users, GameStop (GME) was a sure bet to fail. A specialty retailer in an industry going online. An ancient relic bleeding out in dying malls.
The Players
Melvin Capital, a small hedge fund with a reported seven clients and about $10 billion assets under management (AUM) had been shorting GameStop since the quarter ending March 31, 2016. Between 2016 and 2020 their short position was very successful seeing shares slide from $31.34 April 1, 2016 to $2.80 on April 3rd, 2020.
Sharks in the Water, The Rich Get Richer
It's pretty clear by now that this isn't a "Reddit breaking the market" thing, but an engineered shuffling of money from these billionaires over here to those bigger ones over there. Theoretically this could have happened without any retail pressure whatsoever, so why stoke the retail trading ferver drawing attention to this mess?
The (TBD) Bag Holdening
It's still to be determined just how the mechanics of the end game will play out. While a lot of retail traders will be far more wealthy than they were a few months ago, the inklings of an engineered, forced bag holding are in the works.
Addendum
How does short interest become greater than 100% of the shares outstanding?
What are the best stocks to short?
There have been several major short squeezes in recent history. These include: 1 Volkswagen’s short squeeze in 2008 2 KaloBios in 2015 3 Freeport-McMoRan in 2016 4 Herbalife in 2018 5 Tesla in 2020 6 GME, AMC, and many other WallStreetBets stocks in 2021
Is Dryships a dry bulk company?
DryShips is a dry bulk company and its fortunes are closely tied to global trade. As is the case with most short squeezes, a piece of news or a positive fundamental story triggers a buying spree in the stock. In 2016, the Baltic Dry Index hit a multi-month high and crossed 1,000.
Is GME overvalued?
Eventually, it is the investors who are late to the party and buy GME at higher price levels will end up burning their fingers. While GME might not go the DRYS way, it is nonetheless quite overvalued and pro ne to a crash soon. Advertisement.
Overview
Background
Short sellingis a finance practice in which an investor, known as the short-seller, borrows shares and immediately sells them, hoping to buy them back later ("covering") at a lower price, return the borrowed shares (plus interest) to the lender and profit off the difference. The practice carries an unlimited risk of losses, because there is no inherent limit to how high a stock's price can rise. …
Timeline
In January 2021, Reddit users on the r/wallstreetbets subreddit built the foundations for a short squeeze on GameStop, pushing up the stock price significantly. This occurred shortly after a comment from Citron Research predicting the value of the stock would decrease. The stock price increased 1,500 percent by January 27 over the course of two weeks, and its high volatility caused trading to be halted multiple times. According to Dow Jonesmarket data, more than 175 million s…
Impact on involved entities
Short sellers who had bet against GameStop suffered large losses as a result of the short squeeze.
By January 28, 2021, Melvin Capital, an investment fund that heavily shorted GameStop, had lost 30 percent of its value since the start of 2021, and by the end of January had suffered a loss of 53 percent of its investments. Citadel LLC and firm partners then invested $2 billion into Melvin, while Point72 …
Other affected assets
Apart from GameStop, many other heavily shorted securities (as well as securities with low short interest) saw increases in their prices:
Prices may be higher during extended-hours trading.
The shares of GME Resources, an Australian mining company with Australian Securities Exchange(ASX) symbol GME, increased more than 50 percent during intraday trading, closing with a 13.3-…
Aftermath
On January 27, 2021, White House press secretary Jen Psaki said that Treasury Secretary Janet Yellen and others in the Biden administration were monitoring the situation. Yellen convened a meeting of financial regulators, including the heads of the U.S. Securities and Exchange Commission, Federal Reserve, Federal Reserve Bank of New York and the Commodity Futures Trading Commission, t…
Reactions
A variety of politicians and commentators across the political spectrum made statements in support of those driving up the price of GameStop and other stocks, as well as against Robinhood and other companies' decision to limit these trades, including Representative Alexandria Ocasio-Cortez, Senator Ted Cruz, Representatives Ro Khanna, Ted Lieu, and Rashida Tlaib, Fox Business host Charles …
See also
• Cryptocurrency bubble – Speculative bubble regarding cryptocurrency prices
• Everything bubble
• Philip Falcone – businessman who performed a short squeeze in 2012
• Greater fool theory – Theory that the price of an object is determined by consumer demand