[crispyambulance]

They're not really "saving it". This is more like a hearty f-u to the people doing the hyper-aggressive shorting. It might make some redditors a nice bundle of money at the expense of some hedge funds in the short term.

GameStop, AFAIK, is a dead-end strip-mall based retailer who, much like Blockbuster, has failed to adapt to changes in the last few years. They've lost something like a billion dollars and nothing is looking up for them as far as their actual business goes. Gamestop likely doesn't have a plan for revitalization unless that involves liquidation or getting bought out. I expect they're utterly blindsided by these recent events-- they've been very quiet about it. Gamestop surely knows this won't end well for them.

Is there a place for GameStop-like retail in dying suburban strip-malls? Sure. Are they a growth industry? nope! The Hedge-fund guys are ultimately "correct" that GameStop has no future. I just hope that all the reddit kids who bought this stock are fully aware that the last ones holding the bag are going to lose money, but I feel nothing but elation at the hedge funds losing a ton of money over something so ridiculous.

[jaxwerk]

WallStreetBet's consensus on buying Gamestop was born from an understanding of its share price being undervalued, based on basic profit and loss analysis, as well as a promising board member joining who has the background to grow the company's digital business. Brick and mortar business has also run successful experiments with positioning as local e-sports hubs, which could be an interesting evolution for that side of the business.

The insane stock price we're seeing now is in anticipation of a short squeeze, but folks who took the bet before January seemed to mostly agree that the share price belonged somewhere around $30 regardless of the insane shorts. There was hope of a short squeeze being possible, but the downside was considered minimal with the thesis that GME was fundamentally undervalued regardless.

[jfengel]

Is this f-u actually costing them any money? There are paper losses in the short term, but unless they're forced to actually cover those shorts, they don't materialize as real losses.

Are those losses occurring? Or is WSB just being self-congratulatory about how much of their own money they're throwing away, and being ignored by the people they're supposedly hurting?

(I genuinely don't know; it's hard to tell from the reporting. Nor am I an expert. I could imagine that some hedge fund is getting margin calls forcing them to cover shorts that would seem to be shaky. If that's the case, I could imagine those rules getting rewritten.)

[chillacy]

Ryan Cohen from Chewy just joined GameStop, so it's probably not true that they're going to continue their current strategy.

https://www.forbes.com/sites/joanverdon/2021/01/11/can-ryan-...