Gamestop stock being pumped to the moon by Redditors

billiam said:
It's kind of like the younger generation's powerball but with more memes. It's fun to buy a few shares for the entertainment value alone and then try to short the fuck out of it on the way down. It was so damn exciting when GME was going crazy.
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Yeah I bought GME when it was $18 because I had extra $25 in my account. It went up to about $35 in 2 weeks and it stayed, so I bought more. Then the craziness began.
 
The GameStop turnaround promise is failing
Yahoo Finance! said:
GameStop Chairman Ryan Cohen and CEO Matt Furlong promised to turn the gaming retailer into one of operational excellence and amazing store experiences while cashing in on new opportunities like crypto and NFTs.

More than a year into their collective and rather secretive leadership, the entire experiment is beginning to look like an utter failure — underscoring longtime Wall Street concerns about the company's business model such as too many costly physical stores in dying malls and shifts to digital gaming.

Not helping GameStop's turnaround efforts is a complete crash in the once thriving digital asset market that Cohen and Furlong were banking on (see: the NFT market crash or GameStop's strategic partnership with now-defunct FTX).

The realities of this underwhelming turnaround story were on grand display in GameStop's third quarter earnings out Wednesday evening...another dreadfully poor quarter of financials:
  • Net sales -8.5% year over year.

  • Sales down in the hardware/accessories and software businesses — these businesses have represented about 82% of GameStop's year to date sales.

  • Sales down in the United States, Canada, Australia, and Europe.

  • Gross profit margins unchanged year over year.

  • $95 million adjusted operating loss. Year to date, GameStop has lost $354.9 million on an adjusted operating basis.

  • Total cash of about $1 billion, down from $1.4 billion in the year ago quarter.
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The stock is down to 22.26 today (from a peak of 81.25 on January 29, 2021).

How are those "diamond hands" holding up for the bro social media community of investors? Why was this hill chosen to die on in the first place? I never understood that.
fordman7795 said:
Don’t forget GME did a 4-1 stock split so the current price would be 4x higher.
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Incorrect. Historical price data is adjusted for splits.
 
Madmick said:
The GameStop turnaround promise is failing

The stock is down to 22.26 today (from a peak of 81.25 on January 29, 2021).

How are those "diamond hands" holding up for the bro social media community of investors? Why was this hill chosen to die on in the first place? I never understood that.

Incorrect. Historical price data is adjusted for splits.
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I am not incorrect. Yes historical price data is adjusted. The quote I replied to was comparing pre split to post split prices.
 

GameStop shares jump 30% as trader ‘Roaring Kitty' who drove meme craze posts online again​

NBC New York said:
GameStop shares rallied more than 37% in premarket trading Monday after "Roaring Kitty," the man who inspired the epic short squeeze of 2021, posted online for the first time in roughly three years.

The post, a picture on X of a video gamer leaning forward on their chair as if to indicate he's taking the game seriously, marked Roaring Kitty's first post on the platform — or on Reddit— since 2021.

Roaring Kitty, whose legal name is Keith Gill, is a former marketer for Massachusetts Mutual Life Insurance. Also known as DeepF------Value on Reddit, Gill drew an army of day traders who cheered each other on and piled into the brick-and-mortar video game stock, and GameStop call options, between 2020 and 2021.

The "meme stock" frenzy involved individual investors taking aim at short sellers and hedge funds who were pessimistic about the outlook for GameStop and other companies, forcing them to cover their short positions and drive up the price of the target stocks. Currently, the short position in GameStop shares amounts to more than 24% of all its shares that are freely-available to trade, also known as the float.

The poster child was hedge fund Melvin Capital, which was heavily shorting GameStop and became a target of the army of amateur traders, suffering huge losses that prompted Ken Griffin's Citadel, as well as Point72, to backstop Melvin's finances with close to $3 billion in support.

The GameStop mania that drove its stock above $120 a share, split-adjusted, in early 2021 from as little as $3 in the space of three months, forced brokerages including Robinhood to limit trading in heavily shorted stocks. In response, one Robinhood user filed a class-action lawsuit following the app's decision to restrict GameStop trading on its platform. The suit was dismissed in August 2023.

Another class-action lawsuit brought against Gill alleged that he pretended to be a novice trader despite being a licensed professional.

The volatility spawned a series of Congressional hearings around brokers' practices and gamifying retail trading, and testimony from leaders of Robinhood, Melvin Capital, Reddit and Citadel, as well as Gill. The entire episode finally inspired the 2023 movie "Dumb Money," in which Paul Dano played Gill.

In January 2021, GameStop shares hit an all-time high of $120.75 intraday, adjusted for a subsequent 4-for-1 stock split in the summer of 2022. But as interest from individual investors eventually faded, the stock collapsed along with other meme stocks such as AMC Entertainment Holdings. GameStop last month hit a three-year low of $9.95.

Recently, the stock has started to move higher, which may have rekindled Gill's interest, along with the enormous amount of short interest in the stock. GameStop has soared 57% so far in May, closing Friday at $17.46.

But the fundamental business at GameStop, evidenced by its most recent earnings report, shows a discouraging picture at the video game company. In late March, GameStop said it had cut an unspecified number of jobs to reduce costs, and reported lower fourth-quarter revenue amid rising competition from e-commerce-based competitors.

GameStop posted revenue of $1.79 billion in the fourth quarter, compared with $2.23 billion in the same quarter a year earlier.
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Retail will have to try something different this time around. Hedge funds won't go in so deep again.
 
Fedorgasm said:
Retail will have to try something different this time around. Hedge funds won't go in so deep again.
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Did any of this come to anything? Did Wall Street stop betting big on shorts?

Because they weren't wrong about Gamestop. They got their nose bloodied, but...they were right. They were right about the fundamentals. Gamestop's mode of business is obsolete. It's terrible.
 
Who else is tempted to short this if the rally continues?
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I’m back in with 2 GME and 4 AMC. I know it’s a gamble but I’m ready to lose it all. Meme stocks her we come…again!
 
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