WallStreetBets appear to be winning this epic battle. At least for now. Friday GameStop stock closed +50%. Monday GameStop stock closed “only” +18%. Hedge Funds used all kinds of tricks to artificially bring the price down. They allegedly used illegal naked shorts to drive the price down. In other words, shorting the stock without actually borrowing the stock first. That did not help them. And yesterday the fight was on. GameStop stock was incredibly volatile. But at the end of the trading session, the price crept up and up and up. And closed +90% at $147. Wednesday pre-market GameStop stock is up +115%. Wow.
This whole saga brought a lot of attention to itself. And even billionaires decided to join in on the hedge-fund bashing fun. First were Cameroon and Tyler Winklevoss. The famous creators of Facebook and Bitcoin billionaires. Both tweeted their observations on the situation. Tyler wrote, “GameStonk $GME is up to $210 in after-hours The Jedi memers are vanquishing the Empire“. And Cameroon even expressed interest in opening a long position in GameStop stock.
The GameStock $GME army is winning the war
— Tyler Winklevoss (@tyler) January 26, 2021
Thinking about going long GameStop $GME. Thoughts?
— Cameron Winklevoss (@cameron) January 26, 2021
Next is Chamath Palihapitiya. The legend himself bought GameStop call options. And tweeted this:
today was a fun day. https://t.co/KD0AgvtCXku
— Chamath Palihapitiya (@chamath) January 27, 2021
And last but definitely not least. The meme master himself Elon Musk. It is known to all that if Elon tweets or merely mentions he likes some company the stock soars. Yesterday was no exception. GameStop stock rose another 60% after-hours trading.
— Elon Musk (@elonmusk) January 26, 2021
A Message To Everyone Thinking This is Dumb
Before you go to the comments and declare that I’m a moron. Again. Leave your hubris for one moment. And look at things objectively. This is not just a bunch of fools playing casino and manipulating the stock market. This is what elites do. No, this is 2.4 million people saying enough. Enough shorting and enough dirty tricks. This whole saga exposed how easy it is to drive a stock price up or down. With enough capital anything is possible. And this phenomenon is not just on Reddit. WallStreetBets Twitter account has gained 100 000 followers in just a few hours. Also, 100 000 new comments were made in one day in Yahoo Finance for Gamestop stock.
These people are like you. Normal, working people. Retail investors with small capital trying to drag themself out of their tough income situation. Income inequality is real. Inflation is real. The rich get richer, the poor get poorer. But with the rise of the world wide web. Free information sharing and open discussions. People are waking up to this unfair, imbalanced system.
Where to now?
No one knows really. It is clear that GameStop stock will continue going up. BlackBerry and AMC are also participants. A few more Gamma squeezes are expected and option sellers need to hedge the call options. One thing is for certain though. 1000$ or even $2000 is not off the table. The momentum hasn’t slowed down as the media would suggest. The momentum is speeding up. Is GameStop overpriced right now? Absolutely. Is that the point? Absolutely not. This isn’t about the gains. It’s about the hedge-funds. The WallStreetBets warriors are not stopping until hedge-funds start dropping like flies. I just hope that institutions will be more careful about shorting stocks from now on.
Read yesterday’s story here.