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GameStop is just being GameStop (i.redd.it)

submitted by heelmarsh

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[–]addocd 968 points969 points  (15 children)

I just told my kid 2 days ago, "You want COD so bad? Go get 40 games you don't play anymore and $25 and I'll take you to Gamestop."

[–]9Lives_ 175 points176 points  (8 children)

I gave the whole Dj hero turntable set, 4 games and $20 to get the Spider-Man game for my nephew because the thing took up so much space

[–]rebeltrillionaire 115 points116 points  (7 children)

I remember when the stores were stuffed to the gills with old Rockband / Guitar hero controllers. But instead of clearing out their stores of beat up equipment by reselling cheap they just held on.

I don’t know what they did with their old Rockband or Guitar hero controllers but they’re one of the most valuable companies in the world now.

I guess the lesson is buy and hold.

[–]iCumWhenIdownvote 18 points19 points  (1 child)

They pulled a spoiled brat and "took their ball and went home" by throwing out anything they couldn't sell for an insane market. Cut the cables too. I imagine a few dumpster divers with soldering knowledge made a pretty penny.

[–]rebeltrillionaire 12 points13 points  (0 children)

Yeah, the thing is that equipment did NOT hold up well. So buying for $1 and selling for $5 woulda been my take on the typical GameStop interaction. No way would I want to clutter my store with a likely broken or soon to break $60 peripheral that can only be used on a single game and makes my store look noticeably worse.

[–]juanzy 3 points4 points  (1 child)

I don’t know what they did with their old Rockband or Guitar hero controllers but they’re one of the most valuable companies in the world now.

They're probably in a warehouse waiting to sell them in 10ish years at >MSRP because they're "vintage."

[–]9Lives_ 0 points1 point  (0 children)

That same DJ hero set up I mentioned above now go for about $25 on eBay

[–]FlashCrashBash 38 points39 points  (0 children)

The fact that Gamestop has been around long enough to screw over two generations worth of people in trade ins is criminal.

[–][deleted] 12 points13 points  (4 children)

They told me once “we don’t buy PS2 games anymore”

THEN WHY THE HELL DO YOU HAVE A WHOLE SECTION DEDICATED TO PS1 AND PS2 GAMES

[–][deleted] 3 points4 points  (1 child)

They were probably phasing then out, my GameStop is doing the same for XB360 and PS3 games 😔

[–][deleted] 4 points5 points  (0 children)

I feel like by the time I’m able to afford a PS5, they’ll stop accepting PS4 games too 😔

[–]aron2295 2 points3 points  (0 children)

They’ve had those games since Bush was in office.

[–]JustSomeBadAdvice 2 points3 points  (0 children)

Jokes on them, we have multiple small business game stores near us that are doing just fine by collecting and buying/selling old / retro games and game consoles. (Well they were before Covid, and I'm sure they'll bounce back after) Games like gold edition Zelda 64 and Secret of Mana sell for way more than new stuff, but even random older stuff sells for decent prices.

[–]dude_diligence 67 points68 points  (0 children)

Xzibitesque business model engaged

[–]Straightup32 108 points109 points  (14 children)

That’s not how the stock market works bud.

[–]Evan_the_cat 194 points195 points  (7 children)

It's a joke about their used game buying practices lol

[–]Rurudo66 76 points77 points  (6 children)

And also, I think, about how Robinhood (and other apps) stopped people from buying Gamestop stock but not from selling it in order to drive the price back down. Thus, those who bought it high expecting it to go up even further are stuck watching it drift downwards since the vast majority of people who were driving the price up have been blocked from buying more of it. The use of "forced" is just a little bit of hyperbole, I would imagine.

[–]Aphexian 78 points79 points  (5 children)

You would think so but there are report of Robinhood selling people's GME stock without their authorization.

https://www.google.com/amp/s/www.rt.com/usa/513968-robinhood-gamestop-force-sale/amp/

[–]Rurudo66 90 points91 points  (1 child)

Jesus, that's egregious. Robinhood is literally stealing from the poor to give to the rich. I'm sure there's some irony in there somewhere...

[–]duchess_of_fire 13 points14 points  (2 children)

That's what happens when you buy on margin

[–]pvshabba 18 points19 points  (2 children)

If you shorted GME stock at $3/share and then bought at $300/share to cover wouldn’t this technically be accurate?

Or do I have no clue how all this works?

[–]rebeltrillionaire 21 points22 points  (0 children)

It’s got the right flavor but it’s the wrong recipe. The $3 shorts didn’t cost $3. They were expensive, because they don’t own the shares. There is a margin involved.

So they bought something they didn’t even own, and then wanted to sell it for more, but then ended up having to purchase more at an even more expensive mark up.

The reason it doesn’t translate well is because there’s no other thing that exists where you trade something you don’t own.

IRL imagine walking into GameStop and saying, I think 100 copies of 2K20 will only be worth $5 each in January 2021. I’d like to make that bet now, by just paying the right to buy for just $0.10 per copy. So basically I could buy all 100 copies for $10 if I’m right. They hold the right to buy those 100 copies, and if the price goes down as they predicted they make money. Because for $10 they could buy all those copies, and sell at the $5 price point, and pocket the $90.

But what if the 2k20 becomes super valuable, and the game isn’t available anywhere? Now everyone is selling at $500.

Well, you’d have to pay $500 per copy. That’s the contract you signed. All 100 copies must be purchased by January 2021, regardless of their street value.

It doesn’t work in the real world, nobody would agree to that shit.

[–]fiya79 0 points1 point  (0 children)

Pretty much

[–][deleted] 2 points3 points  (0 children)

Kinda does when you’re short selling. You basically borrow the shares and sell them, betting that they will decrease in value, at which point you buy back the shares and give them back to whomever they were borrowed from, pocketing the difference. If the stock price goes up you’re fucked, I believe they’re on a deadline to return the shares so they were borrowed at $3 and now to buy back the shares to return they’re having to pay hundreds of dollars more for them.

[–]jaeelarr -1 points0 points  (0 children)

that shit went right the fuck over your head my guy

[–]UnkleRinkus 137 points138 points  (26 children)

Dude is ignorant. Gamestop has almost nothing to do with this. You're neither buying the shares from, or selling them to, GameStop.

[–]AnswerIsItDepends 351 points352 points  (0 children)

I may be way off base, but I assumed he was making a joke.

[–]Jurkin_Menov 68 points69 points  (2 children)

Uhhhhh, I believe you missed the point. When the shorts begin to cover (triggering the short squeeze) they will be forced to close their short positions by buying at ridiculous prices forcing the stock to skyrocket. Then as retail investors sell to get their tendies (at the zenith of the short squeeze), the stock price will slowly go back to it's original support/resistance at about $20-40/share. So Melvin Capital is buying at $300 and eventually selling at $4 (which is a bit low considering it only reached that point due to 140% SI). He is just drawing parallels here for comedic effect, he's not actually saying that Gamestop is buying the stock... But you had to go and act superior, I bet you're very fun at parties.

[–]9Lives_ 14 points15 points  (0 children)

I bet you’re very fun at parties

Jokes on you, I don’t get invited to parties!!

[–]Cuddlyaxe 18 points19 points  (12 children)

there's a very very high chance that they'll issue new share soon, I mean why the fuck wouldn't they

[–]JassyKC 9 points10 points  (3 children)

Wait...how does it work then??? I’m so confused about all of this.

[–]UnkleRinkus 47 points48 points  (2 children)

Companies originally issue stock and sell to outsiders to raise money. After that, generally outsiders are trading it among other outsiders. Companies may choose to buy back sock, but that's moderately uncommon. What is happening no is all between outsiders, GameStop isn't a player here.

[–]badtimebonerjokes 14 points15 points  (0 children)

Big facts. I shall add the reason it is so insane is because the hedge fund Melvin didn’t own the stock. ‘‘Twas borrowed to short. Hence the fuck up.

[–]Robbiebuddy[🍰] 2 points3 points  (0 children)

It’s funny. Chill.

[–]ItsaRickinabox -2 points-1 points  (0 children)

I mean, it is gamestop stock...

[–]Xiaxs 0 points1 point  (0 children)

Also no one is being forced to sell shares under market value. So it's blatantly wrong too.

[–]dina2019 4 points5 points  (1 child)

SPREAD THE WORD

Credit to u/PsychoticC4rrot

Please read!!! This text will be the most important piece that you’ll see today!!!

They didn’t exit any of their short positions! You can look it up!!! The fund sold their shares to other funds, which made the stock algorithm think the stock is being sold —> price goes down —> the found that bought sells those shares again to the fund that sold them in the first place —> price drops even more —> they keep doing that —> price drops lower every time —> but as long as we hold they weren’t able to exit any positions!!! Shorts are still up 120% percent. As long as we hold the squeeze is inevitable!! And if you don’t believe me, look at the GME after hour stock price!

Furthermore don’t sell at 1000$ tomorrow or next week!!! It can be way fucking higher! I‘m talking about numbers around 10/20k per share! Compared to the VW squeeze in 2008 GME would need to be valued at 34000$ per share!!!

READ THIS!!!! COPIED IT FROM A WISE REDDITOR!!!

EVERYBODY READ THIS! Important!

Since it got removed: When do we sell? A quick guide for GME Army. (SECRET TO DIAMOND HAND 💎🙌 )

When do we sell? A quick guide for GME Army. (SECRET TO DIAMOND HAND 💎🙌 )

Too much disinformation about when to sell. I'm tired of seeing people paper handing GME when it drops by 20%, or saying to sell Friday (BTW DO NOT FUCKING SELL FRIDAY OR I WILL COME OVER THERE AND DO STUFF TO YOU!) so here is the DEFINITIVE guide on how to play the ending.

First, we need to understand what is "Days to Cover" or "Short Ratio" .

Official definition:

• ⁠Days to cover, also called short ratio, measures the expected number of days to close out a company's issued shares that have been shorted. • ⁠Days to cover is calculated by taking the number of currently shorted shares and dividing that amount by the average daily trading volume for the company in question. • ⁠A high 'days to cover' ratio can often signal a potential short squeeze.

Dumbed down version:

• ⁠imagine you're Melvin Capital and you have 1 million dildos up your ass. How long will it take to get all those dildos out of your ass? If the volume of dildo removing is 1 per day, then it'll take 1 million days to remove 1 million dildos up your ass. If it's 50,000 dildos a day, then it's 20 days. • ⁠Same thing with covering short positions. How long will it take Melvin Capital and other shorters to cover their short positions? You take alllll the shorted shares, divided by the average volume of share movement per day, and you get something called "Days to Cover"

Now you know what day's to cover means, you can check many websites to see what is the days to cover for GME.

So you can see, even if Melvin Capital wants to cover their shorts, it's gonna take them DAYS, and right now it's gonna take them an entire trading week to cover their position.

So what does that mean for us?

Well, we're just waiting for the day when Melvin Capital starts covering their position. When is that day? VERY FUCKING SOON. They're are bleeding out of their ass with the insane interest rate they're paying for their position, and a lot of puts are expiring on Friday, plus a lot of ITM (in the money) calls expire Friday and can be exercised to get shares.

Friday might be the day where Melvin Capital have no choice BUT to start covering.

Now, IF this happens, then it's not gonna take Melvin Capital 1 hour to cover all their shorts, but DAYS. Meaning if Melvin capital starts covering FRIDAY, it will take them at LEAST 5 DAYS to fully cover, which means ALL of next week, the price will keep increasing and increasing! So realistically I'd say Weds or Thurs next week might be peak sell time, IF the covering starts Friday. No need to panic sell. No need to worry about a top that lasts for minutes. It will LAST FOR DAYS!!!!!

Now, CNBC and all of the MM's and corrupt media will fool you into thinking Melvin Capital has already covered their shorts or some other bullshit, but don't believe it. It takes DAYS to do so!

The only numbers you should be looking at is the short ratio. If it's getting smaller, then the squeeze has begun. If it's still at fucking 138-140% like it is now, NOTHING EVEN HAPPENED YET.

We're at fucking $250 after hours and the shorts still haven't begun to cover yet! Imagine when they do? $1000 is actually a very low estimate, and is no longer a meme number. If we all play it right and hold while shorts cover, we can literally squeeze this to infinity as they try to cover.

TL:DR = ACTUALLY FUCKING READ IT AND HOLD MOTHER FUCKERS HOOOOLLLDDDD. WE'RE ROBBING WALLSTREET TOGETHER!!!!!

💎🙌 💎🙌 💎🙌 💎🙌 💎🙌 💎🙌 💎🙌 💎🙌 💎🙌 💎🙌 💎🙌 💎🙌 💎🙌🚀 🚀 🚀 🚀 🚀 🚀 🚀 🚀 🚀 🚀 🚀 🚀 🚀 🚀 🚀 🚀 🚀 🚀 🚀 🚀 🚀 🚀 🚀

[–]marino1310 0 points1 point  (0 children)

So would now actually be a hood time to buy?

[–]SuccessfulBlock7 10 points11 points  (11 children)

Buy Dogecoin

[–]MyHandRapesMe 3 points4 points  (0 children)

Yup. It went from .016 to .076 today alone. It's going to keep pumping, so toss some spare change at it and join the pump.

[–]ozayyyyyy 1 point2 points  (8 children)

Where?????

[–]lionsonlyplayonehalf 17 points18 points  (0 children)

GameStop is not involved in either side of either transaction.

[–][deleted] 10 points11 points  (0 children)

Maybe some billionaires will commit suicide and do this country a favor.

[–]um3i 1 point2 points  (0 children)

Surprised they didn’t just give you instore credit only.

[–]DingleberryBlaster69 10 points11 points  (1 child)

This is not even remotely what’s happening

[–]badtimebonerjokes 29 points30 points  (0 children)

The underlying premise is correct. But I think the tweeter was just intending to make a joke, not be accurate. I think anyone who has been following today and yesterday or has watched the big short gets what’s going on. People are always trying to make light or hilarity of current events. Especially when it’s the trigger of a major turning point in history.

[–]McBride055 -3 points-2 points  (2 children)

People are crazy stupid. I'm no stock wizard but this is not how stocks works.

[–]MercyIess 0 points1 point  (0 children)

Could you explain please? I mean, I'm not even sure how stock works. I understand the concept of "Buy a part of the company and it may be more expensive afterwards if they do nice or cheaper if they do bad", but how does GameStop doing nicely affect the stock market in billions? I just don't see the butterfly effect there

Ps. Sorry for any misspelling or weird sentences, I'm not native and neither do I know how to express my thoughts on that

[–][deleted] -1 points0 points  (0 children)

Everyone is buying dogecoin right now! I just bought 200 bucks. This is gonna be next GME when the stocks open tm!! 🚀

[–]AboveAverageTaco -1 points0 points  (0 children)

I'm just here to represent the Discovery Zone stock.

[–]mrearthsmith -1 points0 points  (0 children)

Hahaha, yes so true!

[–]PM_ME_HOUSE_MUSIC_ -2 points-1 points  (0 children)

Expect GameStop isn’t buying or selling any shares but ok.

[–]8-bit-brandon 0 points1 point  (0 children)

Those assholes took my psp and only gave me $30 when I was desperate to pay bills. When the squeeze is all over I have no problem seeing them go out of business.

[–][deleted] 0 points1 point  (0 children)

It’s not over.

[–]Dylarob 0 points1 point  (0 children)

I traded my iPod for For Honor

[–]Lim_er_ick 0 points1 point  (0 children)

Just to be serious here for a second. These hedge funds broke the law by naked trading, the incredibly intelligent individuals saw what they were doing and bought up excess stock and the hedge funds literally turned off trading to them, causing the little guy again to lose money while these funds reshorted the market with your retirement money. The game is only a game if you can win.

[–]Loud_cotton_ball 0 points1 point  (0 children)

To be fair, it checks out by video game logic. Sell me something for 50 gold? Ah, your dirty hands touched it now so best I can do is 5.