Stocks

[Abey]

Of course this has been going on forever.

The whole stock market is a big pyramid scheme based on supply and demand. There is no sense in valuing a company at a 20x multiple other than the fact that others are willing to buy it at that level. So why is it wrong to push the stock up to a 1000x multiple?

Theres a huge difference here, implied value is still value (imagine buying AMZN in 1995) but to some extent markets can be sheep following each other in which case the last sheep gets eaten. But the free market decides 😂😂😂

[zh cohen]

How did wallstreetbets make it go up in value?

By being willing to pay more for it (and not willing to sell it for less).

[Abey]

By being willing to pay more for it (and not willing to sell it for less).

good explanation https://www.nbcnews.com/business/business-news/gamestop-reddit-explainer-what-s-happening-stock-market-n1255922

[Shmulie]

I saw some talk about SLV Is it possible for them to do a short squeeze on a commodity?

[sguitarist18]

Curious to hear opinions - I bought blackberry about 9 months ago, probably about $4 and change. Was strongly considering selling once I hit the 1-year mark anyway...wondering if this recent upheaval is going to hurt things over the 3-6 month range.

[zh cohen]

The biggest winner in all of this? Blackrock

https://www.reuters.com/article/us-blackrock-investment-gamestop-idINKBN29W22T

@mods, I think this discussion should be split to a "WallStreetBets short squeeze" thread

[Randomex]

There's a story behind that:
A user known as u/ControlTheNarrative found a bug in Robinhood's trading platform and exploited it to leverage his original deposit of $2,000 all the way up to roughly $50,000, resulting in a ratio of approximately 25:1 leverage. He sold covered calls and, thanks to the bug, the credit that he received appeared as liquid money on his account. He used the money to buy put options on Apple stock, a trade which led to a loss of $46,000, enormous relative to his initial deposit of only $2,000. He recorded the live reaction to his loss and uploaded it on his YouTube channel.
 - https://en.wikipedia.org/wiki/R/wallstreetbets#The_%22infinite_leverage%22_glitch

[PlatinumGuy]

When short sellers push a stock down it hurts many more small retail investors than when the short sellers lose. Many more live much more destroyed.

Shorts may be detrimental to society as well, but two wrongs don't make a right.

The money being used to sell shorts isn't rich peoples money, it's other poor people's money (pension funds).

The rich people they hare here are the custodians and they don't necessary actually lose anything.

It's satire.

https://en.wikipedia.org/wiki/Poe%27s_law

I disagree with you
buying a put your loss is limited to what you paid for it
with short selling the stock the loss is not capped

You're right, but with true short selling, WSB would've never known.

I saw some talk about SLV Is it possible for them to do a short squeeze on a commodity?

Sure, a commodity is the same as a stock and any other asset. I believe there is a traded fund that is compelled to buy silver and ship it physically to Canada whenever there are capital inflows, and I'm sure there are many similar.

The difference with commodities is it that banks hold positions and can be hurt, whereas stocks are mostly only hedge funds.

Curious to hear opinions - I bought blackberry about 9 months ago, probably about $4 and change. Was strongly considering selling once I hit the 1-year mark anyway...wondering if this recent upheaval is going to hurt things over the 3-6 month range.

IMHO it should bring more people into the market and drive valuations up across the board (as will stimulus bills), unless a crash is resounding enough to drive a market wide selloff.

[shwarmabob]

It's satire.

I guess I didn't lose my sense of smell but humor

[PlatinumGuy]

I know this GameStop stuff is funny, but you have to remember this is hurting real people who own multiple boats (-Twitter)

[Yehuda57]

I know this GameStop stuff is funny, but you have to remember this is hurting real people who own multiple boats (-Twitter)

https://twitter.com/loganbartlett/status/1354613330900635651

[Naftuli19]

WeBull back up!

[madhocker]

Theres a huge difference here, implied value is still value (imagine buying AMZN in 1995) but to some extent markets can be sheep following each other in which case the last sheep gets eaten. But the free market decides 😂😂😂

There are very few companies that really disrupt total industries like AMZN, and therefore justify high multiples. For the other 99% of stocks, it's hard to make a case even for an average p/e ratio (whatever that is today for the S&P). As long as demand outpaces supply the price will rise, and I think small retail investors banding together to create high demand is justified.

That said, these day traders are not experienced enough, and will likely be left holding the bag once the greedy ones pull out.

[PlatinumGuy]

https://twitter.com/samsacks/status/1354880694846173187

‘The little guy’

[yos9694]

I know this GameStop stuff is funny, but you have to remember this is hurting real people who own multiple boats (-Twitter)

Now you think it's funny? But if someone else sees the humor in it you give a lecture?

[PlatinumGuy]

Now you think it's funny? But if someone else sees the humor in it you give a lecture?

Nothing wrong with enjoying a joke when you’re also aware of the gravity of the situation.

[ExGingi]

https://twitter.com/justinkan/status/1354853920762253315

[stooges44]

It gets better

https://twitter.com/justinkan/status/1354861746897346560

[Yehuda57]

This made me giggle.

I love how they're now sending messages to the hedge fund managers telling them to pull themselves up by their bootstraps, get a second job, and skip the avocado toast. Now that's quality advice.

Let's not kid ourselves that slimy Wall Street suits are the victims here. Most of them are custodians of money than many families and retirees depend on for their bread and milk.

It's easy to celebrate the triumph of the little guy, but the crazy volatility and inevitable crash will likely cause serious & enduring tangible pain for many, many, families.

The government and regulation are the devil, but the jungle is far more dangerous.

I know this GameStop stuff is funny, but you have to remember this is hurting real people who own multiple boats (-Twitter)

Now you think it's funny? But if someone else sees the humor in it you give a lecture?

Nothing wrong with enjoying a joke when you’re also aware of the gravity of the situation.

[madhocker]

Can someone explain why these stocks seem to fly in AH trading. Are there no sellers AH, or that secondary markets don't control the spreads as closely.