the blowback against robin hood was massive. politicians from both sides are comming after them and here are class action lawsuits filed. i do think they will try it again. however the effect will be minimal.
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The short squeeze movement is pretty cool but I'm confused about why everyone takes issue with hedge funds short selling. It's just a gamble that doesn't affect Gamestop itself, right? Also, I read that Melvin Capital closed out their position a couple days ago and I wasn't sure what that meant. Did they do the stock buybacks prematurely? I saw people saying they were lying about it to cause the stock to dip. I don't know much about the stock market.
Anyway I've bought some AMC stocks since GME felt too volatile for me, hopefully it becomes the next target.
Anyway I've bought some AMC stocks since GME felt too volatile for me, hopefully it becomes the next target.
It's going to be a repeat of yesterday. They'll boost the stock before open, let people buy at the high price then remove the ability to buy again(robin'hood already announced this). Some people sold yesterday, many others who held got scared when they saw how volatile the stock is. They're hoping those who held yesterday will take the second chance to cash out today, while those who buy in today will be fucked.
1. HGF bets that GameSpot will go out of business.
2. HGF borrows shares from other people to sell.
3. GameSpot share price goes down.
4. HGF buys stock back and makes profit.
5. Regular shareholders lose value.
Doesn't seem right to me.
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No, you don't get the share until the stock price reaches that price.
I had the same question yesterday. This is one of the answers I got from Reddit.
"If you put a market order it will buy at whatever the open price is *if it can get filled. If you did a limit order it won't fill until GME hits that price".
(Edit: also see reply below this one, I believe it's the same doubt as you had).
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That's the price it closed at yesterday. You'll buy at whatever the price is when the US markets open in 3 hours and 15 minutes from now. Most stock buying apps will let you set a maximum price to buy at if you place an order now.
but it's going down because people don't have faith in the stock rather than because they are shorting it, right? that's why it's a gamble, they aren't forcing the stock down. regular shareholders lose value because the funko pop store is a weak stock to begin with.
Part of the dip yesterday is because people often have sell orders to cover their asses if it dips to low. Since no one was able to buy it just cascaded down and activated the sell orders. On the other hand that also clears out sell orders so I don't think we'll see a dip like that today.
It takes for ever for the application process to be approved with some of these firms.
Yeah okay that's evil. Bye bye Revolut.I appreciate you may have few options and no judgment if you choose to use them anyway but you may want to dodge Revolut if possible - even for finance companies those guys are fucking evil. This article just one example:
Revolut staff claim they’ve been told to quit their jobs or be fired
Staff members at Europe's biggest fintech startup say that they have been pressured into leaving their jobs and taking salary cuts as the company embarks on cost-saving measureswww.wired.co.uk
Thanks mate, I was having a brief browse and couldn't see much in the way of decent apps so figured we had barely anything because "Australia." I'm presuming there aren't many market apps that have no fees, or no fee ones are just risky? Or it's just again Australian ones don't have no fees because they are mainly tied to Australian markets?
That post was about shorting stocks in general but I was curious about this as well so thanks. That makes sense and it's pretty scummy of brokers to suspend trading to "protect you" which causes things like this.
That and you will only be able to buy full shares, so you're gonna need $300 just to get in.
I think if you're coming from the thought of traditional investing, where if you believe in a company's futures you buy in (or just not buy or sell the stock otherwise), shorting blows. Betting on a company to go down and profiting off of that feels pretty scummy.
It's not necessarily forcing the stock down, but it can arguably create artificial downward forces, particularly with big money influence like with hedge funds. Like if most of the money is pitted against it, it's hard to reverse that trend. Ideally 1) something would never be excessively/unrealistically shorted, and 2) natural market forces would push back to punish the excessive shorts. Normally that doesn't happen cause there's not enough money on the other side, whether indifference or just not enough money or whatever the reason. GME became a perfect storm where enough people noticed and took a chance (and I'm sure there's huge fund/1%er money on the positive side of this along with regular folk) and the market worked...up until brokerages happened to break up the action (I'm sure there's legitimate reasons like the liquidity issue, and I'm sure there's obvious illegitimate reasons, it'll be fun to see that stuff exposed).
All that said, as far as the company itself is concerned (your original Q about how it affects them directly iirc), the reason to issue stock is to raise money. If their stock is artificially forced down it does materially fuck them. Or stock is used to lure/pay employees, crappy stock kinda kills that allure too. Ultimately it's money, might not be directly accessible money, but it's a form of money nonetheless.
Thank you for the detailled explanation. I think I did not make it clear in my post but what I meant were call options that expire on friday and on monday.
Well yeah that's why I suggested it 2 hours ago. Still 2 hours to go though!
Holy crap at some billionaires jumping in, though its kind of hilarious because surely they would have capitalised on hedge funds in their portfolio investments so its somewhat bittersweet to see them "fight" against the hedge funds.
Also hedge funds are playing dirty spreading disinfo regarding shorts expiring. I really hope some get investigated for their practices (highly doubt it).
Also hedge funds are playing dirty spreading disinfo regarding shorts expiring. I really hope some get investigated for their practices (highly doubt it).
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It takes days though.
I guess I don't really buy the idea that any hedge fund does this to a company if they think their prospects are good. Hedge funds go through companies balance sheets and decide based on things like that if their stock is overvalued or undervalued before deciding if they should short them. If there's not enough money on the other side that's because investors are wary of the stock, otherwise there would be other hedge funds maintaining long positions. I feel like their stock going down can only be blamed on the company itself because the stock prices are just a result of their actions.
Like in the case of GameStop, we all agree that things aren't looking good for them, right? The only people who disagree are those spamming "WE LIKE THE STOCK" on Reddit because they don't want the SEC to think it's an organized effort to inflate the stock.
Ah see I'm in the U.K. and I've signed up to a few and it's taken minutes or hours. But that must be a U.K. think if it takes days over there.
Would it not be considered an organised effort to inflate stock in as much as accountants and investors/investing magazines/investing websites are considered to not be inflating stock? Yes there is a concentrated effort to destabilise hedge fund owners, however it certainly isn't intending to inflate stock for profiting nor are they explicitly saying "go this stock because you'll make big bucks trust me."
Will this social media schemes become the norm in USA? If so, that's how democracy ends, with a big sound of applause. New 2008 here we come.
What do we feel is a good buy in dip price today? I don't think we'll see $125 again like we did yesterday.
I hope this is you joking.
Don't risk any money you aren't willing to lose
I appreciate you may have few options and no judgment if you choose to use them anyway but you may want to dodge Revolut if possible - even for finance companies those guys are fucking evil. This article just one example:
Revolut staff claim they’ve been told to quit their jobs or be fired
Staff members at Europe's biggest fintech startup say that they have been pressured into leaving their jobs and taking salary cuts as the company embarks on cost-saving measures
Those are all lies if that matters to you (i have many friends working there), if you look at that guys article he looks like he have a vendeta against Revolut.
This. So much this.
So many people jumping on this without understanding the risks. If you're jumping in you need to be able to lose that many - if you can't stay the fuck away.
It's so frustrating to hear every news channel completely ignore the short squeeze when discussing this. Like, they're completely ignoring the entire reason this is happening in order to scare people.
Regardless of if it's for profit or to destabilize hedge funds, they are doing it by inflating the stock. Also people are pretty much saying that, lol. It's not exactly organized though, and the SEC would be hard pressed to prove that it is.
Clickbait works best, I mean for news media scaremongering is their way of making money and views. Maybe we need a GME of news media...
Just in case you're being serious here, no you should not.
Getting way off track but: I know people who have either worked at Revolut or applied there too and they have had an incredibly bad time.
It doesn't mean your friends aren't having a good time - I know people who've worked at other fintechs and it's often a highly variable experience, even within individual businesses - but a non-trivial proportion of people at that company speak of a stressful, horrible working culture, one actively promoted and cultivated by the guy in charge:
Revolut insiders reveal the human cost of a fintech unicorn's wild rise
Applicants asked to work for free, rudeness, and high staff turnover tarnish the fintech startup's success story
(Apologies to the rest of the thread. Stonks! We like them!)
I'm hearing a lot of the platforms have disabled this for the "meme" stocks at the moment.
No fee brokers like Robinhood take money from you in other ways, like taking percentages of your gains. For regular investing into ETFs, which is basically all I do, a flat fee is best for me.
Getting way off track but: I know people who have either worked at Revolut or applied there too and they have had an incredibly bad time.
It doesn't mean your friends aren't having a good time - I know people who've worked at other fintechs and it's often a highly variable experience, even within individual businesses - but a non-trivial proportion of people at that company speak of a stressful, horrible working culture, one actively promoted and cultivated by the guy in charge:
And you have no reason to attack the source in this particular case other than they've written a couple of negative articles about a company you like, but if you don't like what the guy's written then look at Storonsky's Slack posts.Revolut insiders reveal the human cost of a fintech unicorn's wild rise
Applicants asked to work for free, rudeness, and high staff turnover tarnish the fintech startup's success story
(Apologies to the rest of the thread. Stonks! We like them!)
Sorry, still OT'ing:
Yeah i saw/know all that, and that article is from the same guy, i didn't say i don't like this guy for disliking Revolut, is just sensationalist and very clickbait on him to only write about that company in that way. What i mean with knowing people there is that nobody was told to quit or get fired.
I'm not defending Revolut's culture or anything, just saying to check a lot of places before ditching a product just because some random guy looking for atention wrote a post in wired. Even that slack message is pretty bad, but you don't have the context.
The best source for this things is to look at glassdoor from people who actually worked there (which are mixed, more bad than good to be fair, but nothing like this guy describe).
edit: just to clarify, i'm on the "companies are not your friend", so any critic is welcome :p