GameStop shares drop 20%, briefly halted following 400% short-squeeze spike last week

[brooklynite]

Source: CNBC

GameStop shares fell as much as 34% and were briefly halted on Monday as the Reddit-fueled frenetic trading extended into February.

Shares of the bricks-and-mortar video game retailer last traded down 25% on Monday. GameStop jumped as much as 18% to $384.89 in premarket trading.

The stock surged 1,625% in January as point-and-click investors piled into the name while hedge funds rushed to cover their losses from shorting the stock.

The astronomical rally has inflicted a mark-to-market loss of almost $13.5 billion to hedge funds with short positions against the stock, according to data from S3 Partners through Friday’s close.

Read more: https://www.cnbc.com/2021/02/01/gamestop-shares-reddit-trader-frenzy-continues-into-february.html

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Didn't see THAT coming.....

(and neither, I suspect, did a lot of new stockholders)

[Throck]

1. My lotto tickets did hit either.

[RAB910]

2. While everyone is cheering thinking this is a David VS Goliath thing. The reality is this is just a

more sophisticated pump and dump scheme

[calguy]

4. That's a cold hard fact

A lot of newbies gonna learn hard lesson. The pumpers got them to believe they were buying into a "cause". The reality isthey just deposited their money into someone else's account.
WoWie!!! GME is up 1700%!! I better load up!!!

[My Pet Orangutan]

6. It's not pump and dump

that's not what is driving this.

If you read WallStreetBets it's more about people who are prepared to write off all their buys in an effort to put predatory hedge funds out of business.

[RAB910]

7. do you think there is any chance these anonymous internet people

might be lying to keep the gravy train going a little longer?

[My Pet Orangutan]

10. Do you think there's a chance that the mega hedge funds

who have lost tens of billions of dollars would pull out all stops to discredit them?

Anonymous is anonymous

[RAB910]

15. When it comes to money, I tend not to trust the internet all that much

I have certainly seen plenty of scams including the pump and dump. Rest assured there are going to be a lot of regular people who are going to lose a lot of money due to this scheme

[Thekaspervote]

18. Every post on TikTok from those buying to those just following was not about getting rich

They were quite willing to let go of what they had invested. They all remembered how wall street was bailed out in 08 and their lives, at least many were destroyed

[appmanga]

22. Wanna buy a bridge?

[jorgevlorgan]

3. Neat sale

Bought more

[IronLionZion]

5. The people who joined this too late have bought high

and will definitely lose money. That sucks and many of them probably don't have sophisticated knowledge of how this works. But they won't owe since they bought long and hopefully didn't take loans to buy it.

But none of those individual investors would lose the billions that hedge funds have leveraged and lost from selling short and then having to cover it while getting squeezed. Some of them already lost more than their funds were worth.

The reddit army are counting retail investors as casualties in the war against wall st billionaires.

They're going after AMC, Bed Bath and Beyond, and a bunch of others next. I'm a spectator in all this. It's way too risky for me.

[My Pet Orangutan]

8. People are prepared to lose money on this

The primary goal of the GME short squeeze is to put predatory hedge funds out of business.

[calguy]

11. The pumpers who created this scam

are more than prepared to have all that lost money deposited into their accounts. How many bought a new Mercedes over the week end?

[My Pet Orangutan]

12. The dumpers short struggling companies out of business every year

for big bucks. Your point is.

[calguy]

16. Sounds like you bought into the "cause"

[sweetloukillbot]

14. I wonder how much Gamestop stock Elon Musk was sitting on when he tweeted everyone should buy it

I don't trust evil geniuses, or Reddit trolls. I think the left cheering this on are being played by a bunch of Libertarians out to make a quick buck.

[Thekaspervote]

19. Mark Cuban bought big too!

[AntiFascist]

9. I wonder how Fidelity made out? n/t

[muriel_volestrangler]

13. Seems a pretty small drop, compared to recent jumps for it

It ended about where it was last Tuesday.

[calguy]

17. Only 30%. lolol no big deal

[muriel_volestrangler]

20. Yeah, higher than at any point prior to a week ago

For most investments, that would be pretty damn good. The problem is that now, its share price is not a reflection of investment suitability, it's a culture war and opportunity for gambling on all sides.

[calguy]

21. Tell that to the poor saps that bought and hold in the high $300's

[calguy]

23. It's not every day you gets a chance to pay $300 for a $10 stock.

[TexasBushwhacker]

24. Personally, shorting stocks creeps me out

But when people invest with hedge funds, they know what they are getting into. They are taking big risks in the hopes of reaping big rewards. Sounds like good old greed if you ask me.

[brooklynite]

25. Final close: 225 (down 30%)