[bargl]

This. The stock was at around 20/share before the spike and was considered a WIN at that. It's now sitting at 40/share and is probably priced high.

It was shorted to below 2/share at some point which is imo insane given what we've seen EVERY SINGLE CONSOLE RELEASE EVER.

The media saw an opportunity to make this about populist rage, and we all bit it. But this was started as a short squeeze and a very effective one at that.

EDIT: Just to clarify. There was obviously a short squeeze. That short squeeze could have stopped at 20/share and been a GREAT short squeeze. I have friends who got off the ride at that point thinking the squeeze was over. The frenzy that happened that pushed the stock to 400 was insane, and wouldn't have happened if this stock didn't start trending. You don't have a subreddit go from 2m to 8m in 2 weeks unless there's some serious frenzy.

[0xy]

GameStop's margins are awful, and no amount of hypey releases will save them. Their website is still garbage. This is a flailing has-been physical retail business, propped up by Microsoft and Sony who see it as a billboard.

[bargl]

That's a valid argument, but they showed a ton of revenue lately and shouldn't be valued at 2/share.

I think the stock is between a 10/share and 30/share stock but I'm not a professional. Honestly the professionals aren't professionals and that's backed by some studies but I won't get into that right now.

The idea that you can cover this story without mentioning the short squeeze is lazy or dishonest. While it's an artificial boost to a stocks price it's a completely valid boost to that price too.

I use the PS5 as an example. How expensive is it? 500? Wrong. It's 500 if you put in time and energy, but if you value your time and energy over that of the retail price you can get one on ebay for 1000. Is it worth 1000? Only if you are impatient.

What's GME price? 2/share 15/share doesn't matter. If I have 1000 of something and I know that 1400 people MUST buy it by the end of the month, I can be sure that I'll make some money there. Was 400/share reasonable? I don't think so, that was mania and the fact that this short squeeze got mainstream and people had FOMO.

[TheCoelacanth]

You can't really count on that, though.

All 1400 buyers could be satisfied with just 1 share that gets resold 1400 times. At even 20/share, some of the people who loaned out their shares to short-sellers are going to sell their shares when they get them back to cash in on the 1000% gains.

They could even be satisfied with 0 shares if someone is willing to short-sell. At 400/share, there were certainly plenty of people willing to short-sell.