As of when I'm writing this comment, GME is up about 1,800% since the beginning of the year. I am extraordinarily skeptical that this is a good thing, for Gamestop or the investors or really anyone at all.
It's incredibly good for GameStop. This gives them an excellent opportunity to issue new stock and raise a huge war-chest to pivot and become a 21st century business.
The thesis that many Bulls are approaching Gamestop stock with is that the company was fundamentally undervalued prior to the current short-squeeze event. Even after the current spike resolves, a return to a $30 or so share price (up from $5 or so most of this year) gives them plenty of market cap and plenty of time to capture it for a major re-positioning in the market.
Curious how long it would take. Are there regulatory hurdles that take time? If not, I could see that the potential for large profits might make an otherwise slow process suddenly get completed in a short amount of time if needed.
What's new here is that the sales pitch about shorts needing to be covered has more truth to it (I think, not an expert) than the usual vague promises about a huge turnaround being right around the corner. Usually the argument that other buyers will follow you is based purely on their supposed FOMO
Impossible pump and dump bubbles are a very old and well-trafficked phenomenon. This particular case is a bit interesting, because it appears that the pumping may be a fully distributed phenomenon - but even then, it shouldn't surprise anyone if news eventually breaks that there was some organized group behind it.