GameStop will hit a breaking point...but it won’t be today or tomorrow. It’ll flip somewhere next week, and in 48 hours go all the way back to $19 a share.
I dont think so. I think it will settle in the 40’s or slightly higher. The shorts oversold the market jacking up supply and artificially depressing the price. 120% of your stock being “borrowed” to be resold means there was that much more supply than natural. Then there is the fact that Gamestop has had a massive capital infusion with this run up. Solvency is not an issue. One of Chewy founders being added to the board is what set this thing off jacking their price from 18 to about $20 and what convinced the reditteers initially that the shorts were wrong. Also, the publicity Gamestop is getting is worth a hell of a lot. When they roll out their online portal how much advertising will they need to do and how many of these “gamers” will show some loyalty to the cash cow they just created? Remember how much gamers spend on gaming.
It is a LOT of moolah. It is not worth $350, or $100 or even the north of $40 I am calling for, but that is where I think it will settle within 30 days.
Time to lay in a supply of popcorn.
I have no sympathy for these short sellers. They’re just as rapacious as the socialists.
if I understand correctly, the calls are due Friday i.e. the short-sellers have to make good on the borrowed shares.
It apparently is not a problem when wall street manipulates the market but it is when individual investors make a market