Anyone watching the Reddit/GameStop saga?

[jinjuku]

If anyone ever thought the market didn't have the the fix in this should disabuse you of that notion.

Robinhood hit with class action lawsuit after it restricts GameStop stock

Robinhood can now add a class action lawsuit to its growing list of headaches after it said it would restrict users from trading GameStop and other stocks.

finance.yahoo.com

 

[slipperybidness]

If anyone ever thought the market didn't have the the fix in this should disabuse you of that notion.

Robinhood hit with class action lawsuit after it restricts GameStop stock

Robinhood can now add a class action lawsuit to its growing list of headaches after it said it would restrict users from trading GameStop and other stocks.

finance.yahoo.com

I haven't dug into the story, but I've been aware of it and have a pretty good idea of how this works.

But....Gamestop of all businesses! Gamestop is pretty well despised in the hard-core gamer community. Just too many shady practices, they give you pennies on the $ for used games and sell them too close to new prices. I also have a problem with their practice of removing discs from the sealed boxes, then when you buy a "new game", they put the disc back in the box (new game = sealed game, esp in the era of day 1 massive updates/downloads and DLC). Then the way they treat their employees, and they constantly try to push the service agreements on you, the list goes on and on.

 

[GO-NAD!]

If anyone ever thought the market didn't have the the fix in this should disabuse you of that notion.

Robinhood hit with class action lawsuit after it restricts GameStop stock

Robinhood can now add a class action lawsuit to its growing list of headaches after it said it would restrict users from trading GameStop and other stocks.

finance.yahoo.com

Even though I have equity investments, the stock markets do feel a bit "rigged" to me. It was satisfying to see the little guy coming out on top for once. I'm having difficulty understanding how Robinhood can justify their actions.

 

[BoredSysAdmin]

The complete moron’s guide to GameStop’s stock roller coaster

How does this epic rally end? And can it be repeated?

arstechnica.com

Discord bans WallStreetBets as subreddit briefly goes private [Updated]

Robinhood app restricts stock purchasing as regulators express worry.

arstechnica.com

WallStreetBets craze pushes dogecoin up 5x in 24 hours

The social media mob that pumped up GameStop is now dabbling in cryptocurrency.

arstechnica.com

 

[Irvrobinson]

If anyone ever thought the market didn't have the the fix in this should disabuse you of that notion.

Robinhood hit with class action lawsuit after it restricts GameStop stock

Robinhood can now add a class action lawsuit to its growing list of headaches after it said it would restrict users from trading GameStop and other stocks.

finance.yahoo.com

You have drawn an incorrect conclusion based on a lack of information. While I don't generally care much for articles on Yahoo Finance, here is one containing an interview with the CEO of Webull, which is another broker caught up in the GameStop (and other stock) frenzies:

Webull CEO: Here's why Robinhood is restricting users from buying stocks like GameStop

Webull CEO Anthony Denier joins Yahoo Finance Live to discuss how heavily shorted stocks are faring this week and break down why Robinhood restricted its users from buying surging stocks like GameStop, AMC, and BlackBerry.

finance.yahoo.com

The underlying cause of the buy trading stops was some under-funded brokers like Robinhood and Webull running out of capital to fund the two-day trade clearing period. It is not a conspiracy or the system being rigged.

 

[Pogre]

I just got filled in on this yesterday! I haven't dug in yet but it comes across as a win for the little guy at first glance to me.

 

[highfigh]

I hope Koss is able to benefit from this- nice people, but they let themselves be screwed by an employee and their auditor because they trusted them too much.

 

[Irvrobinson]

I just got filled in on this yesterday! I haven't dug in yet but it comes across as a win for the little guy at first glance to me.

A lot of fat dinosaurs like hedge funds got burned by shorting these stocks, just like they've been burned to the tune of tens of billions on Tesla stock. The dinosaurs suffered from a failure of imagination about social media group actions and cult stocks like Tesla. If these "little guys" had chosen their brokers better, and not by what's considered cool and chic at the moment, they could have continued trading. But using Fidelity or Schwab is only for old people.

What I'm really fascinated by are the congresspeople like Warren, Ocasio-Cortez, and Cruz who apparently have no understanding at all about how the equity markets work, yet start shooting their ignorant mouths off to get attention. And the attorneys starting very profitable (for themselves) class action suits that will almost certainly fail. Well, if the ignoramuses are investigating stock brokers they'll have less time to make other potentially expensive mischief.

 

[Irvrobinson]

And, just when I thought nothing could be funnier than Congress, there's the SEC:

SEC reviewing volatility amid GameStop frenzy, vows to protect retail investors

The SEC said it will work to protect investors by reviewing the recent volatility that has fueled a meteoric rise in stocks like GameStop and AMC Entertainment.

www.cnbc.com

The SEC is making a silly statement for show. They're just saying they're going to investigate, and they're wrapping it up in "We're going to protect the retail investor!" bullshit so they can keep Warren & gang off their backs. All they're probably going to find is that some brokers ran out of money to cover the clearing time. The SEC and Congress should get a tutorial about Occam's Razor. Sometimes the simplest explanation (the brokers ran out of money) is the most likely one.

Edit: only Congress needs the OR tutorial. I think the SEC knows exactly what's going on and they're just covering their butts.

 

[pcosmic]

A lot of fat dinosaurs like hedge funds got burned by shorting these stocks, just like they've been burned to the tune of tens of billions on Tesla stock. The dinosaurs suffered from a failure of imagination about social media group actions and cult stocks like Tesla. If these "little guys" had chosen their brokers better, and not by what's considered cool and chic at the moment, they could have continued trading. But using Fidelity or Schwab is only for old people.

What I'm really fascinated by are the congresspeople like Warren, Ocasio-Cortez, and Cruz who apparently have no understanding at all about how the equity markets work, yet start shooting their ignorant mouths off to get attention. And the attorneys starting very profitable (for themselves) class action suits that will almost certainly fail. Well, if the ignoramuses are investigating stock brokers they'll have less time to make other potentially expensive mischief.

Ocasio & Cruz are dummies for sure....But, cmon man, putting Liz Warren in that group of clowns?? I am pretty sure some of the easy bags of cash i made back in the days can be traced back to the advice i took from that woman. I can guarantee you she's quite a bit smarter than you. Don't be fooled because she looks like Aunt Claudia.

 

[Hetfield]

Ok I don't understand any of this, I mean nothing. I get that done hedge fund was gonna lose a billion bucks.
What I don't understand is how do these people are making money if the stock is 300 bucks a share? If you bought it at 5 bucks yeah, but no one is making money now that it's 300. Am I correct? I'm order for you to have money in this deal you had to be in early? Am I right?

Sent from my Pixel 4 XL using Tapatalk

 

[Irvrobinson]

Ocasio & Cruz are dummies for sure....But, cmon man, putting Liz Warren in that group of clowns?? I am pretty sure some of the easy bags of cash i made back in the days can be traced back to the advice i took from that woman. I can guarantee you she's quite a bit smarter than you. Don't be fooled because she looks like Aunt Claudia.

Yeah, right. Warren... the person who lied on her bar application in Texas about being a Native American. Really smart. Not.

 

[Irvrobinson]

Ok I don't understand any of this, I mean nothing. I get that done hedge fund was gonna lose a billion bucks.
What I don't understand is how do these people are making money if the stock is 300 bucks a share? If you bought it at 5 bucks yeah, but no one is making money now that it's 300. Am I correct? I'm order for you to have money in this deal you had to be in early? Am I right?

Sent from my Pixel 4 XL using Tapatalk

Read the first link in Post #4. It involves bets about whether stocks will go up or down.

 

[pcosmic]

Yeah, right. Warren... the person who lied on her bar application in Texas about being a Native American. Really smart. Not.

I agree about the Native American gaffe. But, she was a republican for most of her life if that makes ya feel better.

 

[Irvrobinson]

I agree about the Native American gaffe. But, she was a republican for most of her life if that makes ya feel better.

What would make me feel better is if you would go away. Weren't you the guy making the case that the Soviet Union had it right?

 

[pcosmic]

What would make me feel better is if you would go away. Weren't you the guy making the case that the Soviet Union had it right?

Just the guy who likes to distribute a few historical facts. Have a nice day lol.

 

[Trebdp83]

Excuse me guys, could I step in for just a moment? I had some sage and palo santo left over from the smudging of another thread. Ooh, that’s pungent, ok, all done. I’ll take the heat for any cultural appropriations, carry on.

 

[panteragstk]

This whole thing is interesting for sure. There are a LOT of people that have made a boatload on this.

 

[pcosmic]

This whole thing is interesting for sure. There are a LOT of people that have made a boatload on this.

I cashed in from buying a whole buncha Tesla stock and AMD prior to that....(pays to keep an eye on "emerging technologies"! ) But, this is an outlier for sure...Who would have thunk it is a good idea to stare at reddit from time to time...

 

[BoredSysAdmin]

I cashed in from buying a whole buncha Tesla stock and AMD prior to that....(pays to keep an eye on "emerging technologies"! ) But, this is an outlier for sure...Who would have thunk it is a good idea to stare at reddit from time to time...

I bought some AMD stocks at $16. I plan to hold them for another 2-3 years at the very least.
Options are not something I fully understand yet, but from what I do know they seem very close to legalized gambling, which I don't intend to do.
In my opinion, Apple will continue growing fairly fast next 3-5 years and I am just waiting for the right movement to get on to that train a bit cheaper.