![]() ![]() Excessive buying triggered a massive short squeeze, which caused prices to skyrocket further - roughly up 10x in the past week - driving hedge funds (and others) who are short GameStop lose boatloads of money. (It’s also why I’m not inclined to short!) It’s a fascinating example of how the internet enables communities to effectively voice their opinions at scale and influence financial markets. One, it’s all fun and games for now, but the good times won’t last. ![]() Sorry, but GameStop isn’t worth $24 billion, and it doesn’t deserve to be the most traded stock in the market. Many of the same everyday people who are pushing the stock price up will be the same people who lose a ton of money as reality inevitably sets back in. We’ve seen this time and time again (crypto 3 years ago, internet stocks 20 years ago, etc.). Second, as you may have picked up on, I (Aaron here) haven’t even mentioned the business yet. Sure, maybe there’s a small turnaround story at play I previously underestimated if GameStop can grow its online business faster than its retail stores close down (plus benefit from revenue share partnerships with console providers), maybe it can stay alive as a niche retailer. That’s what Chewy founder, Ryan Cohen, and his crew seem to think, and they’re taking on board roles. However, this hope is a far cry from being worth $20+ billion. ![]()
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