The stock was run up by people eager to spite hedge funds, there was never any interest by serious investors. Manipulating a stock price for spite or amusement rather than profit is legal, I supposed. The problem for the hedge funds is that what was seen as relatively safe bet, a hedge, became a serious liability. They were not dealing with people buying up a stock in a classical bubble or rational calculation, risks that had been factored in, but rather people acting out of spite, merely to screw hedge funds, and only a few particular ones.
Now, you can make profit by investing in spite, but the spite value is gone. No hedge fund, or serious investor will touch Gamestop. The stock is in the hands of spiteful adolescents. It’s a horrible stock to own, but you can, possibly make a profit on it.
RE: The stock is in the hands of spiteful adolescents.
GameStop was the first stock purchase for many Millennials and an opportunity to get their feet wet in the world of finance.
They might be spiteful adolescents, but the hedge funds are run by greedy c****. They manipulate stocks all the time. How about HFT? Do a million buys in a microsecond then sell when it rises a quarter point a couple microseconds later. What actual value is that?
That BS is a drain on our most intelligent people.
Physics, Math, and Computer Science PhDs writing algorithms for Wall Street scum. But, that’s where the money is, so that’s where they go.
The hedge funds short businesses to bankruptcy so they can make money.
A few people happened to spot it this time and stop them. That’s why the price per share went to almost $500.
If/when the hedge funds and banks get margin called, they have to cover all shares, both real and synthetic.
There’s great research being done on the GME, WallStreeBets and Superstonk subreddits. Check some of it out.