It’s also a good time to re-internalize Isaac Newton’s classic quote: “I can calculate the motion of heavenly bodies, but not the madness of people.” So true!Īlright, let’s get back to stories that are actually about business and games. The bottom line is that 1) internet mobs are unlocking new forms of influence, 2) GameStop is a short-term beneficiary, 3) this has little to do with the underlying business, and 4) we’ll see if management can seize the moment to their advantage. That’s classic reflexivity, but I have doubts management can pull it off.Īnyway, nothing on MTM is investing advice and this isn’t either. There’s an interesting question of whether GameStop can opportunistically capture this moment, find a way to raise money, and then use that money to reinvest or acquire in a way it couldn’t do before. However, this hope is a far cry from being worth $20+ billion. That’s what Chewy founder, Ryan Cohen, and his crew seem to think, and they’re taking on board roles. Sure, maybe there’s a small turnaround story at play I previously underestimated if GameStop can grow its online business faster than its retail stores close down (plus benefit from revenue share partnerships with console providers), maybe it can stay alive as a niche retailer. Second, as you may have picked up on, I (Aaron here) haven’t even mentioned the business yet. We’ve seen this time and time again (crypto 3 years ago, internet stocks 20 years ago, etc.). Many of the same everyday people who are pushing the stock price up will be the same people who lose a ton of money as reality inevitably sets back in. Sorry, but GameStop isn’t worth $24 billion, and it doesn’t deserve to be the most traded stock in the market. One, it’s all fun and games for now, but the good times won’t last. (It’s also why I’m not inclined to short!) It’s a fascinating example of how the internet enables communities to effectively voice their opinions at scale and influence financial markets. Excessive buying triggered a massive short squeeze, which caused prices to skyrocket further - roughly up 10x in the past week - driving hedge funds (and others) who are short GameStop lose boatloads of money. Obviously there’s more nuance to the subreddit’s mission and how markets function, but the mob’s tactic is working in the short-term. You can come up with your own opinions on this - especially now that censorship policies have now forced the community private on Reddit and kicked off of Discord - but it’s essentially a more effective, internet-driven version of Occupy Wall Street. At very least I can take solace in the fact that I'm selling something I actually enjoy.So what happened? Well, the subreddit r/WallStreetBets came together with a simple mission: retail investors (aka everyday people) are tired of hedge funds manipulating the market, are tired of billionaires getting bailed out, and are tired of big media companies taking the side of Wall Street, so the community is rallying together to push up the price of one of the most shorted stocks in the market (GameStop). Not to mention I'll be surrounded by video games. It's hard not to be a step up from that hell hole. I don't care if I have to talk to oblivious parents about hyper-violent video games and offer pre-orders and customer surveys to uninterested video game fans. So I quit the place right before a eight hour shift on one of the busiest days. I was also a part time employee (going to school full time) and they forced me to join a union - one that they failed to mention at all during interviews or orientation - which took $30 out of the first paycheck of every month. My last job managers ignored my concerns about harassment. I know most people wouldn't be happy about that, but I'm stoked. Don't get me wrong brother, our store is okay, but the company.let's just say the run things in a questionable manner.I'm being considered for a job at a local Gamestop. After about 5 months of the entire store being threatened by our DM, the manager, assistant, myself and 2 other employees all quit on the same day because we were tired of the BS. Lets just say I worked at one in a very weathy area and our sales topped the district every month by thousands, yet we were always last or second to last in pre-owned sales due to rich people not wanting to buy pre-owned things. We actually talk to people and stuff and I have no interest at forcing reserves and such on people.but thanks broThat's a rare Gamestop indeed. Said: ouch why? We're like the slowest store in the district so, believe it or not, we're not like every other gamestop in the world.
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