GameStop, Stock, NYSE:GME The GameStop GME Stock Situation Is Getting Out of Control…
It’S the only thing people are talking about throughout this entire week, and today it came to a head and we’re gon na go over that today and what’s going on exactly uh for full transparency. I do have some stock actually in gamestop that i bought uh. Like a week ago, so at least for now, it’s worked out for me, it’s, not enough to where it’s like you know, like people posting ridiculous gains on reddit and stuff. Nothing like that and i’m also, not a financial advisor, and you should not take any kind of advice from me when it comes to investing in the stock market guys enjoy these videos. Make sure that, like button helps out a ton if new, the small life plus channel make sure you subscribe down below so let’s take a look at gamestop very quickly here, and it actually closed a little while ago and after hours. Right now, the stock is actually surging, currently up to 270 or so dollars. It’S going to jump around quite a bit it’s been happening throughout the week i mean we’ve, seen massive dips. Massive spikes it’s been all over the place, and people are still trying to figure out what exactly is happening and why gamestops stock is always in their timeline on twitter or maybe their subscription feed on youtube. So what i’ve done here is this is the history of the stock here for gamestop back through the last six months, and if you remember, i’ve talked about the stock when it got really really low.
It was down like four dollars or so like. This was a like last year, uh they had that around august and i did see some people talk about buying into. I think smash. Jt made a video on buying in the gamestop stock and others. I saw online as well on twitter uh, just as a value stock like hey. If we buy this at four dollars and it goes up to say ten dollars, you made out pretty well there because you work in the stock market with percentages rather than just oh. It went up six dollars. Actually it went up like 150 percent or something like that right. So generally, people will look at the lower stocks if they think it’s undervalued. However, there is a whole other sector to the stock market. That isn’t talked about as much and it’s kind of hidden a bit to be honest and that comes down to betting against a stock and thinking that it’s going to fall and that’s. Typically what these larger hedge funds will do. There are some very good videos on youtube now that will explain the entirety of what it means to short a stock. But basically it comes down to larger hedge funds, who have a lot of financial backing, will pick out a stock that they think is basically going to fail, it’s going to continue to run down in value, and they will borrow shares and then pay them back later. After the stock tumbles, so if you get a 10 and the stock tumbles to five well, you can then return the shares to them after buying the shares and they will profit five dollars right.
So that way, if it’s, millions and millions of dollars, or even billions of dollars that they are moving around, they can make, as you can imagine, quite a bit of money doubling up. Even if the stock just goes the wrong way. And if you look at just the overall history of gamestop, it was kind of sitting in that four dollar range for quite a while. Then it started to go up to five, and then there was some good news for gamestop, where uh the chewie, some of the chewy board members showed up they bought in and they had a plan for gamestop to become more e commerce, centric and that actually gained Interest on its own in gamestop overall and the stock just kind of climbed on its own. Naturally, if you will, because there was good news and an actual plan in place, rather than just being a brick and mortar retail, store that let’s face it, doesn’t have a bright future in today’s digital world around games. They were looking to go more digital, which made a lot more sense, and that is kind of when reddit came into play and that’s. The one of the biggest things you’ll hear right now is that wall street bets is basically manipulating this stock. I will say: wall street bets certainly pointed out this stock that’s the biggest thing here and from there it’s gone viral mainstream everyone’s talking about everyone’s opening up robin hood accounts, for example, or td ameritrade, or fidelity and they’re putting money in the game.
Stop and it’s. Very risky to do so. Let’S just be clear about that, like i said i’m, not a financial advisor, but this is exceptionally risky trading here with how volatile this entire setup is right now, but after they pointed out that the stock was shorted, an absurd amount, i mean i, when i did Business and finance in college – and there was a whole class where they made us look at the stock market. It was super boring right, but one of the things i remember that was talked about was shorting i’m, like i’ve. What am i ever going to do with this? In my life, when it comes to shorty i’m not going to go work at a hedge fund, it was like an accounting class and stuff attached to it, but at the time i remember it like if a short is like 30 or something that was considered kind Of risky they’re like uh, you know you want to be careful with that, and it looks like with gamestop. They managed to short it over a hundred percent and when i first read that uh on on the subreddit, those getting passed around i’m like how did they even do that? Apparently they got it up over like 120 130 short, which means we get to a point where there aren’t enough shares to go around when the bill comes due, because eventually they do have to return those shares that they have borrowed, because there’s also interest on top Of it, so it gets to a point where it actually becomes too expensive and basically something has to break, which then links us to what you’ve probably been hearing in the news quite a bit when game stops brought up, and that is a short squeeze.
And we have, we do have an example of this. This same thing happened to volkswagen and we even have a little chart here. So the idea that everyone’s going with is that there will come a point where these these shorted shares are due and because there’s, just not enough or shares for the shorts to cover with they will basically fight over them, drive the price up massively, i mean spike. It like crazy to the point where people are going to cash out for some obscene amount of money like if you’re holding shares in gamestop. That is the plan, and if you look at it here, we can see what happened with volkswagen uh. As the short squeeze happened. There was this large dip and then the shares came due. The shorts came due and massive spike up to 912 as of october 28th, and this resulted in a hedge fund losing 30 billion dollars on what’s deemed as an infinity squeeze, which, again is why you see so many people who keep saying hold hold. You know just all over the place you’re gon na hold on to their share, because they don’t necessarily need to keep. I mean they’ll be buying shares if people keep shorting and it seems like they keep shorting on the other side, and then people are buying it up and they’re trying to counteract each other. Like i said, eventually, one side is going to blink and the stock is either going to completely plummet or it could potentially shoot up possibly past what happened with volkswagen that’s, the biggest problem here is there there may be people giving advice.
I don’t think anyone knows what’s gon na happen here. So, yes, you have wall street bets, you have social media in general and then just people who have easier access right now to investing in the stock market with apps like robinhood that have made all of this possible. So, if you’re, online or you’re watching like mainstream news, which was pretty funny by the way to watch them, try to cope with what was happening, reddit is ruining all of this stuff. To be fair, reddit is completely playing by the rules that were set in the first place by these billionaire hedge funds, so, basically think about. If you are playing street fighter against a friend and you are losing and you unplug their controller that’s what they did today and this whoa, this did not go over well online, and i think i understand why, because all of a sudden, if you’re, using something like Robinhood or i think weeble also had the halt, they basically stopped you from being able to buy shares. You were still able to sell your shares without too much issue. You just go on, there say, sell it would queue it up and when they take away that one option there will be a lot of people who decide to then panic sell because, like what happened, i got to get out now and as soon as that happened, The stock started to drop as it was being pushed down by the shorts there kind of coinciding with all of this happening, and at that time everyone kind of looked around and said.
Okay, we get what’s happening here, i mean really. Gamestop and reddit ended up exposing the entire system with the stock market, which is yes, it is stacked against you now. This has led, of course, to a lot of people pushing for lawsuits. One has already been filed. I believe, right now, the co founder of robin hood has come out and said that they weren’t actually pressured by any large institution uh. To do this, they wanted to do it because of just the overall volatile nature right now and how fast trades are happening back and forth in robin hood with gamestop. But it left a lot of retail investors at a massive disadvantage, because the larger hedge funds were still able to do all the little tricks and things they could to try to drive the stock down without any real counter made everyone really mad. It made everyone so mad that if robin hood opens back up for trading on gamestop, which they have said, apparently they’re going to try to do tomorrow in limited qual quantities, what do you think is going to happen? Do you think people are just going to say? I guess we’re out: no, if you go on like wall street bets or twitter, this has become personal for people like they are. They are in they’re like nope i’m in i’m, holding that’s it or maybe they’ll buy more yeah. I i again, i i’m, not a financial advisor i’m, not going to tell you to buy or hold or sell or do anything, but uh tomorrow is going to be uh wild, throw that, in with the belief that i guess tomorrow is when some of these shorts Are gon na come due and they’re gon na have to figure out what they will do with the stock, whether it’s, hey we’re, just gon na call it in we’re gon na lose a ton of money.
One hedge fund’s already come in to basically uh inject money into another hedge fund so that they could try to work this all out and billions and billions of dollars are legitimately being transferred from these larger hedge funds to regular people and at the end of all Of this somehow it’s gamestop the place, you would take your ps5 and trade it in and get like a hundred dollars in store credit which might be kind of high balling it on our side is the one doing a massive redistribution of wealth from the one percent Down to some of the little guys so interesting stuff, there uh not sure what’s going to happen uh. I will tell you what i’m going to do with my a couple of shares. I’Ll hold we’ll, see what happens. I don’t know it’s again: it’s i’m, not in it like some of these people on reddit, there are some wild postings of accounts. Nothing like that it’s, not any amount of money that would like that would bankrupt me or something like that i’m. Just kind of in it just to just for the ride, just so that when we look back on this, because this is going to be, i think something that’s logged in history big time, because i think it’s going to fundamentally shake up the way that the stock Market is done uh, i at least want to be like yeah. That was a part of it thanks guys for watching.
Let me think about this.