GameStop as a business hasn't made any profit in 4 years while their revenues consistently decline. It is a dying unprofitable business, worth the scrap assets that can be salvaged on the balance sheet, not it's current market cap of $7.8 BILLION. Anyone buying or holding $GME is being swindled, a la FTX and crypto scams, by people interested in making big $$ betting against a $200m business being worth $7.8 BILLION.
I'll bet you've never even had one look at their balance sheet or income statement, are just winging it from Reddit comments when it comes to financial evaluation, and that should tell anyone rational, including yourself hopefully, whether you're with the smart money on this position... If not, enjoy the new QAnon.
r/wsb completed it's transformation into r/the_donald of dumb finance echo chamber by the advent of GME. Truly, they will both be case studies of the anti-wisdom of crowds when it comes to current digital interfaces with a sprinkle of bot propaganda.
I think it will be a case study in late-empire corruption and the failure of propaganda.
There's a reason the "buy" (not sell) button was turned off for a day on $GME alone. That's market manipulation. There's a reason it no charges were filed. The SEC openly admits it's corrupt. There are talking heads on the finance channels who openly admit the markets are rigged.
You're right, FTX was a scam. And SBF openly admitted fraudulent actions. So he's in jail, right? Oh, sorry, no -- he's a "distinguished" guest speaking on a New York Times panel.
It's all a scam. All of it. The difference with $GME is that, in this case, they got caught. Hedge funds naked shorted the stock and got caught. At some point they will need to cover and won't be able to. Here's some reading:
You are mad because you think this stock is overvalued?? Well, guess what: The entire market is overvalued! It's all bullshit. P/E ratios are off the charts when we're facing a deep economic downturn. No one should be in the market -- at all. If there's one stock to hold, it's this and for three reasons: they naked shorted; they got caught; and they're fucked.
The reason the buy button was turned off is because when you buy a stock on any brokerage, you don't immediately own it, the shares still have to go through the clearinghouse. The brokerage needs to post collateral at the clearinghouse while they wait for the shares to deliver. The demand for GME was unprecedented, the clearinghouse raised their collateral requirements, and Robinhood didn't have the money to post collateral, even after raising a billion dollars overnight. It's very simple. There was an entire Congressional inquiry into this, which you can read into instead of spreading baseless conspiracy theories on HN.
Correct. Imagine, this guy is wasting hundreds of hours on this “hobby” reading r/superstonk, but still hasn’t even heard of the DTCC which every single trade of his is going through. Information diets really matter.
P/E ratios for the SP500 are 18, while Developed is 12 and Emerging are 11. That’s a 5.6%, 8%, and 9% real return, for an expected nominal yield of ~12%, 15%, 16%. Looks like good P/E ratios to me, and you’re out here acknowledging you’re buying unprofitable garbage co meme stocks. Don’t say you weren’t warned.
