I know there is another thread on GameStop but this is AMC. Tomorrow I think contracts come due on GameStop and will be a wild day. At some point, this crazy trend will be looking for the next heavily shorted stock and it seems to be AMC based upon yesterday’s indications. I’m not a market expert and this seems more like gambling then investing as it’s inevitable GME will topple over in a dramatic swift way, but it’s a crazy phenomenon and have to imagine there will be a new GameStop stock very quickly.
Any thoughts? It appears it has to be a heavily shorted stock to qualify.
There are others too - look for volatile stocks with a high short float
At this point, it's GME is crazy overvalued and is really just a speculative trade in hopes of joining the squeeze. It's a perfect storm. There are still a lot of folks with short positions or who sold call options at lower prices who will need to buy stock for those positions. There's a herd of whackos at Reddit who are acting like a ruthless hedge fund. I don't think the exposure on those positions at other companies is nearly as deep as it was for GME. Also, the hedge funds know that reddit is looking for the next GME and I'm sure they're quietly clearing those positions now. GME made things worse for the hedge funds, because as they were being shorted and their stock went down, they bought it back - like 34M shares. That's really how they got to 140% short. These other companies haven't done that (AFAIK)
The Reddit bros can probably pump those stocks up a bit but not to the crazy levels they have with GME. Youu can probably ride their coattails for a bit for some nice returns. But the problems for AMC are still there, I don't see any turnaround coming like you could have argued for GME so you could also be the guy who buys it at 18 and sells it for 3. (just my opinion obv)
The Reddit bros can probably pump those stocks up a bit but not to the crazy levels they have with GME. Youu can probably ride their coattails for a bit for some nice returns. But the problems for AMC are still there, I don't see any turnaround coming like you could have argued for GME so you could also be the guy who buys it at 18 and sells it for 3. (just my opinion obv)
That’s the crazy part Re now hope for a turnaround via AMC. GameStop has zero chance of survival as its analogy is Blockbuster. No one goes to a via store to buy gaming discs. It’s all down streamed now even the next gen gaming consoles are designed for streaming. There will also be a place for movies at a theatre as a “night out” once the pandemic ends. Albeit, streaming is big at home now too but it’s a different experience from going to a luxury movie theatre which has big Hollywood dollars behind it.
The conviction of this grassroots stock trading is incredible. Eventually GameStop will fall in a straight line and the mania it has created will force the next stock to follow a similar linear trajectory up, and then down in a straight line. It’s scary stuff
Hedge funds shorting 140% of GME was one of the catalysts that kicked this off. AMC is maybe what... 20% shorted?
No idea their reasoning.
@Breaking911
· 11m
BREAKING: Robinhood removes GameStop, AMC; Puts notice on pages saying 'You can close out your position on this stock, but you can not purchase additional shares' $AMC - @benzinga
I did get in with AMC yesterday at 13.00 for 700 so obviously hoping we can see something along the lines?
If not live an learn. I am fully prepared to loss money but would love to make a lot. lol
@Breaking911
· 11m
BREAKING: Robinhood removes GameStop, AMC; Puts notice on pages saying 'You can close out your position on this stock, but you can not purchase additional shares' $AMC - @benzinga
I'm clearly no expert - but is there a way this can be considered market manipulation, not allowing people to purchase a stock?
On another note, it's crazy how divided the media is. Some people are claiming WS is getting a taste of their own medicine while others are trying to run a smear campaign against Reddit.. Financial Times tried linking them to the alt-right, NY Times claiming they're just bored and greedy (haha), one guy on CNBC even thought there was a chance it would be a foreign influencer trying to ruin the market (even funnier)
As the saying goes - bulls make money, bears make money, pigs get slaughtered.
People claiming the "elites" are getting their asses handed to them by the "nerds".
but two of the primary flame stokers are Elon Musk and Chamath Palihapitiya even Mark Cuban is piling on (saying his 11 year old is making money on it trading on his own). Aren't they the elites?
It almost reminds me of the story behind bringing down the house and the reaction to it.
Sure, the elites have chimed in but this was happening well before them. I think they are just flexing their muscles at this point, part of it is just their own marketing.
RH should be done after this. What’s the point of a brokerage if they won’t let you buy the stock you want? It’s clearly not being done for the retail investors’ benefit here.
He posted a meme of DOGE and it doubled in price, a fun, jokey crypto (still can make money on it) but people like Musk have sway.
Agree they didn't initiate it, it was already happening via reddit, but Musk and Palihapitiya blew it up IMO.
Sure, the elites have chimed in but this was happening well before them. I think they are just flexing their muscles at this point, part of it is just their own marketing.
It's not broken. It's deliberate
ah, sorry. It's loading fine on my phone and I can purchase most stocks except for a certain few...
Rude awakening. Btw, RH is trash and you should find a new broker.
People claiming the "elites" are getting their asses handed to them by the "nerds".
but two of the primary flame stokers are Elon Musk and Chamath Palihapitiya even Mark Cuban is piling on (saying his 11 year old is making money on it trading on his own). Aren't they the elites?
It almost reminds me of the story behind bringing down the house and the reaction to it.
Hard to even claim the initial(?) or at least prominent Redditor that helped start the frenzy with his >$50K position wasn't an "elite". How many everyday Joes are willing to bet $50k on a single stock (with debatable future prospects)?
Now his position is somewhere around 60-70mm if he’s still holding right now. From 50k.
Elon Musk
Jeff Bezos
Bill Gates
Warren Buffet
u/DeepFuckingValue
It’s a real good idea to shut out their access. Not like that won’t motivate them even more. A Streisand effect on Reddit steroids.
And anyone who thinks this is some amateur common joe who started this is naive..
Sure love the level playing field
Sure, but not if it comes at the expense of absolutely alienating their core market, retail investors. I can't imagine anyone is going to want to go with them.
The optimist in me says this is a new day. The realist in me says they are just going to make it illegal to retail trade and now need to be licensed or go through a licensed broker. In fact, if something similar happened even 20 years ago, you could almost bank on that happening. Too much information and outcry for that to happen now.
No expert, but from the outside in, the move right now would seem to be to short the stock today and wait for it's tumble Friday/Monday. I'd imagine thats what some big players are doing now, no?
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it's in their best interests to have the hedgefunds on their side.....
Sure, but not if it comes at the expense of absolutely alienating their core market, retail investors. I can't imagine anyone is going to want to go with them.
The optimist in me says this is a new day. The realist in me says they are just going to make it illegal to retail trade and now need to be licensed or go through a licensed broker. In fact, if something similar happened even 20 years ago, you could almost bank on that happening. Too much information and outcry for that to happen now.
My point is...they need the billions from wallstreet over the $$ from retail investors.
And again, the fine they'll pay might be in the millions. The loss they would take if they allowed those stocks to be bought would've been in the billions. The games rigged but they saved $$$$$$$$.
And anyone who thinks this is some amateur common joe who started this is naive..
It wasn't, and the movement was started by a guy who frequents the WSB reddit with this in mind. He's posted there that this shorting didn't make sense from a perspective of who joined the board and where they thought they company was heading and evolving into long term. Brilliant play honestly, just needed the proper marketing for it to take off. Fucking over hedgefunds is like Reddit gold.
My point is...they need the billions from wallstreet over the $$ from retail investors.
And again, the fine they'll pay might be in the millions. The loss they would take if they allowed those stocks to be bought would've been in the billions. The games rigged but they saved $$$$$$$$.
Yeah, but why would retail investors touch Robinhood after these shenanigans? There are other options out there.
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with the common traders being used as pawns
No expert, but from the outside in, the move right now would seem to be to short the stock today and wait for it's tumble Friday/Monday. I'd imagine thats what some big players are doing now, no?
Yup it will go back up because people are shorting it then buying back in at a lower price to cover themselves, it wont be new buyers