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To: nickcarraway

Nobody knows the true value of Gamestop if the shorters are pressuring the stock down.


94 posted on 01/28/2021 10:22:17 AM PST by AlmaKing
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To: AlmaKing

Exactly. I learned this lesson the hard way by observing my employer’s stock price during the oil price crash. People like to think there’s a direct 1:1 correlation between the price of a stock and the company behind it, but that’s nowhere near the case (TESLA anyone?). A company can be cashflow positive, release positive earnings reports, and the stock sometimes just goes down the next day. Ultimately the price of a stock is driven by supply and demand, just like anything else. Gamestop and the rest increase in price so much because of the increased demand initially by retail investors (reddit), followed by the demand increases from hedge funds covering their shorts, causing supply to drop even more.


100 posted on 01/28/2021 10:31:04 AM PST by ruiner
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