what is the endgame for the gamestop bubble?

The ultimate goal is a hedge fund scalp (compete annihilation...nothing less will do). In the meantime, those simply looking to get rich are hoping the stock is pushed over $1,000/share.

This will be the first domino. It will end in an economic collapse.

No it won’t, R2. Despite the histrionic hand-waving, the government and brokerage firms would step in to avoid economic collapse. People are already being blocked from buying GME and AMC on margin (which is basically buying a stock on credit)...more drastic measures aren’t far behind. .

earrings

caftans!

fool + money = parted

Hopefully OP will make enough money from this to get his shift key fixed.

In tears Madge, in tears.

I'm surprised they haven't put a halt to trading on gamestop.

Then again, what they're doing may not be technically illegal...

Pump and Dump is indeed illegal, R8.

no it isn't, r9!

I don't understand any of this! No idea what's going on but I did post here a few weeks ago to say that for the first time in my life I am able to save about $500 a month by working from home and my bank pays 0.25% interest so I needed to learn how to invest. It's so intimidating for newbies though, there are so many straight bro 20-somethings online who seem to speak with great authority but I don't trust them! I do need to get my ass in gear and get in the game though.

It's falling. Lots of dimwits are going to lose lots of money

People who don't understand investing think it's time to invest when the value of a stock is shooting up. In reality, once it's shooting up, it's too late.

[quote] People who don't understand investing think it's time to invest when the value of a stock is shooting up. In reality, once it's shooting up, it's too late.

I'm R11 who knows nothing but I guess I know something because I figured that. Do you (or anyone else reading) have any tips for newbie investors who are not trying to get rich quick. Are there any reputable books, advisors, forums etc.. Thanks.

Buy low, sell high.

R14 read “The Intelligent Investor.” It’s about long term investing.

R12 - the thing is - no one bought this with the intent of making huge amounts of money. It was to sock it to the hedge funds who have been short selling and manipulating GME stock for YEARS.

Nobody is doing this to get rich - most have bought it with an understanding that they may lose a little money, but that it will tank these hedge funds.

Only a few are in this scheme to make money, unlike the hedge funds who try to manipulate stocks all the time to make money. None of it is illegal.

Major trade exchanges have stopped buying so it's pretty much over. Last I looked Webull was still available to buy.

I don't know why people get excited over this, the game is stacked. The hedge fund traders can wipe those gains out a lot faster than the Wall Street Beats can earn them.

It's like if you take a swipe at Mike Tyson and make his nose bleed, better hope you kill him otherwise you're doomed. Doomed I tells ya.

R18 - oh please. No one expected it to tank Wall Street - just to show how things are rigged and that abuse is rampant.

It will certainly start a discussion and I hope this leads to some changes, even if it is unlikely.

It's always good to shine light on abuse and unfairness.

[post redacted because linking to dailymail.co.uk clearly indicates that the poster is either a troll or an idiot (probably both, honestly.) Our advice is that you just ignore this poster but whatever you do, don't click on any link to this putrid rag.]

Here’s where it ends: Class action lawsuits where Redditors will get pennies on the dollars for their losses and the government will bailout the Hedge; then an entire generation is skeptical about the stock market causing retail to heavily pull out completely and the market makers with no one to hold the bag crash the market completely and America is finally done... Roman Collapse 2.0.

Hedge funds not only short a stock, they also actively promote negative assessments and predictions in order to push the price down. They are just as guilty of manipulating the market as the redditors.

I wish I understood any of this

No one is buying GME shares. They're buying calls in GME, to force the sellers of the calls to buy shares to cover themselves.

They're buying way out of the money calls to force the share price to go higher and higher.

No sympathy for hedge funds. Although given that Elon Musk has a grudge against this certain hedge fund for trying to short Tesla, he may have secretly or not secretly pumped a few million dollars on this initiative, he is the richest man now anyway with a million disposable dollars lying around. Redditors think they are so brilliant, but like MAGAs, Qanons and evangelicals, they are randos just being used by rich people with an agenda.

R11, don't let it feel overwhelming...but also don't buy any one particular stock. Just sign up for a Fidelity account online and then put your money into an S&P 500 index fund like FXAIX. As long as you contribute to a fund that is broadly based across the market, you don't have too much exposure to swings like you do with any one stock.

Also, all of this stupid Game Stop thing is because shorting is allowed. If Congress would just outlaw being able to short stocks, that would help a lot.

R26 ARKK is good too

I’m in on ARKG.

R25 - it's one thing to side with Elon and another to be manipulated. No, they weren't manipulated. They knew what they were doing and they're not doing it to make a ton of money, but to send a message.

Hell, no one on Reddit expected it to work. The hedge funds had been shortselling and trying to bankrupt GME for years, including lending more shares than are available.

The point is - there has to be limits to all of this. How are they able to borrow more shares than are available? Why are they allowed to promote stories to the press about how unstable GME is in order to lower the stock price?

This system sucks and is full of holes for manipulation. And who is the sucker? The 95% of people who own stocks who aren't multi-multi millionaires. Also companies are being taken under by this - all for fun and profit.

But to constantly attack certain commodities because they can make money out of it is not fair game. And the fact that they stopped buying on certain apps and websites while brokerage firms can do after hours trading is insane.

If we want to stave off another financial collapse by this stupid, immoral and reckless speculation, then this bullshit needs to be brought to light.

[quote]Daily Mail says GameStop shares have lost 50% as of noon on Thursday, 1/28. Didn't last long. The savvy sold yesterday and moved on, I suppose.

You can thank companies like Robinhood and Schwab for helping that along.

Once they blocked the ability to search for or purchase the stock it was over.

Of course this has riled up Ted Cruz and AOC who for once agreed along with several other congress and house members that a hearing needs to be held and this needs to be dealt with.

Robinhood helped crash a stock that their own investors bought into. Their company is over especially since it came out that half of their base bought into Gamestop and many of them have lost money because of this.

R11/R14, the Motley Fool has an excellent section of their website called Investing Basics. It's really helpful.

This will probably just separate Wall Street and Main St further. All the regulations put into place for “consumer protection” will actually just stop retail investors from the possibility of hitting windfalls and protect the Hedge Funds, as they’ll find ways to game around any laws put into place. The house is just going to skew the odds further. This is the end of windfall retail investing.

GameStop: Meet the amateur traders fighting Wall Street

[quote] No one is buying GME shares. They're buying calls in GME, to force the sellers of the calls to buy shares to cover themselves. They're buying way out of the money calls to force the share price to go higher and higher.

^^^ literally don’t understand a single word of this.

Observations from a TOTAL outsider/know-nothing: Ja Rule sounds like a moron; I wish that cigar chomping “Kitty” YouTuber guy would lose big because he looks like a douche and this was his idea, but I’m guessing he already sold and made a few bucks; I don’t see this leading to the collapse of the market. It’s just a flash-in-the-pan cultural phenomenon. A very very short lived one.

[quote] It's falling. Lots of dimwits are going to lose lots of money

It's falling because someone bought a shitload of Gamestop stock and sold it at a giant loss. It's melvin capital is still trying to manipulate the market. They did it yesterday too. The price was up to around $395 and they sold 790,000 shares of Gamestop for less than half price. They CHOOSE TO LOSE $300 MILLION DOLLARS. This was occurring when most people were prevented from buying Gamestop

•There was 443k shares sold in a single batch at $120 at 11:24:36 AM EST.

• There was 347k shares sold in a single batch at $140 at 11:19:09 AM EST.

Someone took a total loss of $300M from the price an hour prior OR that is a $100M short sale.

[quote] I don't understand any of this! No idea what's going on but I did post here a few weeks ago to say that for the first time in my life I am able to save about $500 a month by working from home and my bank pays 0.25% interest so I needed to learn how to invest.

Invest in a Vanguard Index Fund S&P 500 index fund. It's basically made up of stocks in 500 of the largest U.S. companies. It has low expenses/fees. And you need to watch out for those. Some funds charge a lot of fees. That undercuts your profits

It returned 19.48% in 2017and 9.6% in 2016

[quote]Pump and Dump is indeed illegal, [R8].

While pump and dump is illegal, it's not clear that the people who were doing it actually held positions in the stock while they were doing it.

Every day, people prognosticate about stocks - it's how things like internet bubbles and tulip manias occur.

R37 everyone was pumping the stock on Reddit they’ll have to arrest about 1M people

i'm expecting today is the denoument.

it looks like trading is opening again in gamestop, friday seems to be some kind of deadline for some of the hedge funds to close out their short positions.

So how was it determined which hedge funds had lots of puts on the stock and lost so much money?

Someone bought lots of puts on American Airlines and United Airlines shortly before 9/11, and they never claimed their money. And it was never disclosed who they were.

I’m confused where these small time players are getting the money to play this game. It took a lot of money to keep buying this stock - all fo which could have been lost easily. As someone theorizes, Elon Musk is very possibly behind it as he wants revenge on the guy/fund who did the same short sell tactic on him.

R41, people have money. Even small-time players. Got 10,000 saved? Use 2,000 of it. Why not. Etc.

The hedges haven’t lost any actual money yet as far as I can tell.

Sadly, I think all the people who are going to lose money are the bandwagon set. There are so many posers on reddit and Tik Tok that just want to be cool and and do what the cool kids are doing. It’s really pathetic actually.

[quote] There are so many posers on reddit and Tik Tok that just want to be cool and and do what the cool kids are doing. It’s really pathetic actually.

There’s nothing pathetic about attempting to take down the wealthy wolves of Wall Street. Taking down millionaires and billionaires is a noble endeavor that we should all champion.

r43, the hedgies have lost billions.

usually, the weekend is when the wall street tide goes out, and we see who is still wearing their swimsuits.

monday might be interesting.

R44, while I agree in principle with your stance, it's a little less black-and-white than that--for example, a number of pension plans invest in hedge funds. Whether that's good or bad, the people who will pay the biggest price should something really momentous happen will be the teachers, police officers, government workers, etc., who are counting on those pensions as their primary source of retirement income.

shame on those pension funds, then. if they invest in hedge funds without understanding the investment strategy - or downside risk - shame on them.

The problem is how the Hedge Fund Managers are paid excessively & taxed minimally, and the trading tactics they use to fuck over retail investors. The pension funds might be ruined but the retail Redditors don’t care. This new breed of gamer Aspie traders has repeatedly watched The Big Short & Wolf of Wall Street and idolized those characters. Their goal is literally to collapse the central banks and economy so that a new decentralized economy of crypto can take over and they’re ultimately smarter, when they apply themselves, than the hedges and government so they might figure out how to do it. The one thing is they’re a little too obsessed with GameStop and it’s going to be hard for them to let it go and move onto the next target. Tens of Billions of dollars have left the hands of Wall Street and went into the hands of basement gamers. It won’t probably be long before they’re regularly called cyber financial terrorists. The draconian regulations that the government will put into place will make investing for retail traders very tough in the future. We’ll have to see who will win.

I'm looking in and loving it.

I was doing TurboTax a couple days ago and it asked me if I had bought any bitcoin or other cryptocurrency. None of your beeswax!

I expect it will end up with a bunch of big investors scooping up all the profits and the little people who may be enjoying big gains right now will end up with nothing. That's the way the system works.

R47 yes shame on them, and they have been shamed before, publicly by the financial press. Maybe this will wake them up a little.

[quote] while I agree in principle with your stance, it's a little less black-and-white than that--for example, a number of pension plans invest in hedge funds

Any pension plan that deals with a hedge fund, doesn't give a fuck and is asking to get robbed. The outrageous fees they have to pay. There's no need for that. They're essentially getting raped. They'd be better off investing the pension funds in a Vanguard Index fund

AND FUCK THESE GOD DAMNED HEDGE FUND GUYS who are handling pensions and GLEEFULLY shorting companies on a whim. They don't give a shit about their clients. WHY SHOULD ANYONE ELSE? They should be in jail and never even allowed to even have a bank account. Fucking thieves. And the people whose pensions are involved should fire the person who decided to go with the hedge fund and then sue the hedge fund for maleficence because they were careless, negligent and WILLINGLY harmed all the pension holders

These hedge funders are like drunken addicts who are gambling with people's pensions and your stupid ass is blaming everyone else.

I notice your dumb ass gives zero fucks about the Gamestop employees who have pensions/401ks. Shouldn't you be busy blaming rape victims or something like that?

What still mystifies and infuriates me is that these fucking hedge funds can BORROW YOUR PENSION FUND AND NEVER TELL YOU!

Nor do they have to pay any sort of fee. They're using YOUR MONEY FREE OF CHARGE to rape and pillage companies, driving some out of business.

What the actual? This shit should be illegal. I can't buy lottery tickets with credit cards. Why do these fuckers get to buy stock on credit?

You ain't got the cash up front, sit the fuck down and shut up.

The big lesson from this so far is how very swiftly governments and regulatory bodies can move to stop ordinary people who are obeying the rules of the market. It took the GFC for them to stop the Freddie Mac scams by the big operators, and even then the regulation applied after the crisis was nowhere near enough to prevent its recurrence. Anyone who's watched The Big Short will recall that the regulators kept EASING the regulations to make more and more scamming possible in the leadup to the crash.

R54 is right. Those hedge funds are allowed to pillage your pension funds and speculate with the money, and your pension fund is allowed to let that happen without telling you that some of your losses come from hedge funds who bet wrong - but Reddit isn't allowed to stand up to it.

[quote] yes shame on them

Good luck with that. It's like saying Same on Trump. Nothing is going to change, no big companies are going to lose money. Wall street never goes to jail. The stock market is rigged for the rich in case you have not figured that out yet.

[quote] The big lesson from this so far is how very swiftly governments and regulatory bodies can move to stop ordinary people who are obeying the rules of the market.

Governments and regulatory bodies have already stepped in and stopped ordinary people who wanted to invest in Game Stop? Which agencies and what exactly have they done this week?

I apologise. So far it's only been the trading platforms themselves that have moved to stop the Reddit people.

i will be interested to see the behind-the-scenes activity of regulators here. who called them from wall street. what calls the regulators made to platforms to talk about risk and maybe raising margin requirements.

i hope we continue to have brave leakers in the federal govt in 2021.

R53, you state that "the people whose pensions are involved should fire the person who decided to go with the hedge fund and then sue the hedge fund for maleficence because they were careless, negligent and WILLINGLY harmed all the pension holders." You do realize that, say, an employee of the state of Nebraska has absolutely NO say over how the state chooses to invest its pension obligations? Suing for "maleficence" (perhaps you mean "malfeasance"?) is just not an option. It's all well and good to say fuck the hedge-fund managers, but our economy is extraordinarily complicated, and (as usual) it's the little guys who will wind up paying the price.