And GameStop’s Stock Is Still Going

And GameStop’s Stock Is Still Going
Photo: Michael M. Santiago, Getty Images

A week after its logic-defying surge began, GameStop stock is still holding strong, despite more shenanigans and goofy twists, closing at $US325 ($424) today. That’s higher than Facebook, Apple, and Microsoft. The bubble seems destined to burst any day now, but boosters on the WallStreetBets subreddit are continuing to hype the meme stock anyway.

It’s weird writing a new story each day that says basically the same thing: GameStop, the gaming chain that closes more and more stores each year as more and more people buy games digitally, continues to be having a wild moment on Wall Street. And yet, every day this fact leads to bizarre new developments as everyone’s attention comes to be focused on how GameStop’s saga exposes the brokenness of our economy and financial system.

GameStop Stock Has A Terrible Day, Still Closes At The Unthinkable Price Of $US200 ($261)

A trading lockout on GameStop stock by a number of investing apps led to the saga’s weirdest day yet: class action lawsuits, calls for hearings on Capitol Hill, and the suggestion that Treasury Secretary Janet Yellen might need to recuse herself from overseeing Wall Street’s latest shitshow because she took...

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Yesterday, the circus seemed to be coming to a close as commission-free trading platforms like Robinhood put a freeze on trading GameStop and other meme stocks. Today it put on an encore as some of those restrictions were eased. Here’s what else happened:

  • With GameStop, AMC, and other stocks frozen yesterday, traders found other meme stocks. Most notably DogeCoin, a near worthless cryptocurrency based on a literal meme. Robinhood ended up freezing that too after it surged over 300%.
  • The SEC, the agency responsible for making sure Wall Street doesn’t do crimes, finally spoke up. “[W]e will act to protect retail investors when the facts demonstrate abusive or manipulative trading activity that is prohibited by the federal securities laws,” its commissioners wrote in a statement. “Market participants should be careful to avoid such activity. Likewise, issuers must ensure compliance with the federal securities laws for any contemplated offers or sales of their own securities.”
  • Sen. Elizabeth Warren told the SEC to be more specific about what it’s doing. “Casino-like swings in stock prices of GameStop reflect wild levels of speculation that don’t help GameStop’s workers or customers and could lead to market instability,” she wrote in a tweet. “Today I told the SEC to explain what exactly it’s doing to prevent market manipulation.”
  • A reporter yelled, “Did you discuss GameStop?” at President Biden during a press event in the White House ended. He didn’t respond. Neither did Press Secretary Jen Psaki when asked about it again during the daily briefing. “I know it’s a big story, but our focus and our big story is getting the American people back to work,” she said.
  • The trading app Robinhood said it would start letting users trade GameStop stock again today within certain limits, but those limits kept changing. First they were able to buy up to five shares of GameStop stock. By the end of the day the limit was one. Traders on the WallStreetBets subreddit claimed these changes in its policy directly corresponded to massive downswings in the price of the stock. At least one person seemed to find an exploit, saying they could get around the restrictions by buying and immediately executing futures options.
  • In order to boost morale among employees frustrated with Robinhood over blocking certain stocks, the company reportedly tried to make it up to them with $US40 ($52) in Doordash credit.
  • The Wall Street Journal interviewed DeepFuckingValue, AKA RoaringKitty, AKA Keith Gill, the certified financial analyst and former life insurance marketer who led the movement with GameStop by making his case for it on the WallStreetBets subreddit back in 2019. Contrary to the memes and David vs. Goliath narratives that have taken over the subreddit, he says he was never in it for any of that. “I’m not out for anybody,” Gill told The Wall Street Journal. “Roaring Kitty was an educational channel where I was showcasing my investment philosophy.”
  • DeepFuckingValue, who has achieved cult status on the subreddit, closed out the day by sharing the latest screenshot of his GameStop portfolio in a post titled “GME YOLO month-end update.” His total current investment of almost $US755,000 ($983,992) is currently valued at just over $US31 ($40) million.
  • But as Timothy B. Lee wisely pointed out over on Ars Technica, most people aren’t DeepFuckingValue, and they won’t be making millions or following him to the moon. “[T]he GameStop bubble will have the same practical effect as any other pump-and-dump scheme: transferring wealth from those who got into the scheme late to those who got into it early. The fact that there are short-sellers on the other side of some of these trades doesn’t change the analysis.”

Discord’s r/WallStreetBets Ban Wasn’t A Conspiracy, Just A Demonstration Of Platforms’ Power

After a wild ride that took it off the tracks and onto the goddamn Rainbow Road from Mario Kart, the GameStop stock train appears to finally be pulling back into the station. People are blaming market manipulation from stock trading apps like Robinhood for this, but they’re also lumping in...

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AOC’s Twitch Stream Ended With Reddit’s Millionaire Founder Trying To Talk About Being Poor

You’ve gotta hand it to Rep. Alexandria Ocasio-Cortez: She sure knows exactly when to hit the “go live” button on Twitch. Once again, sensing the perfect moment to address the gamerly masses, she spent a chunk of last night on Twitch talking with experts about the subreddit WallStreetBets’ shiny new...

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I Threw $US1,304 ($1,700) Into That Stonks Game Because Why Not

My partner and I spent $US1000 ($1,303) ($US1,304 ($1,700)) on a game yesterday. We didn’t spend it on Pokémon cards, or Fortnite V-bucks, or decide to become whales in Genshin Impact. But, at my insistence, we combined some funds, downloaded the Robinhood trading app, and bought some stock.

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Comments

  • Oh wow, I didn’t think it was possible to write an article about the GameStop WSB saga without referring to the WSB crowd as “ deeply flawed, often selfish individuals” and painting them as villains because one guy spoke out against communism.

    Really though, Ethan is knocking these articles the park. It’s been pretty objective and he states the events in bulleted paragraphs making it all nice to read. Though you’ll never ever read this, good job Ethan.

    • Funny, the vast majority of MSM articles I’m read have painted the whole thing mostly fairly objectively, tending towards a bit of light cheerleading, given that the media loves a mob pile-on when there’s not an ounce of risk that any entrenched power structures, anywhere, will be threatened.

      In fact, there’s never been a better time to sell more stock, and big business are salivating about the influx of new suckers willing burn some more cash in the casino. As if the simple act of running up your student loan debt in order to become a shareholder is what now passes for radical anti-capitalist activism. LMAO

      • Oh, I was referencing Nathan Grayson’s articles on the topic, he can’t help himself but go out of his way to remind you that WSB are bad people.

        You’re sadly right though, by putting a magnifying glass on this situation, this whole thing is bringing more suckers to the casino. I know it’s got me considering buying stock.
        I mean it’s not bad to get into stocks if you have the wisdom, patience and that little bit of luck, but I imagine the average joe is going to go in with very little research, and will fill the sting of people who have played the game a lot longer and a lot harder.

        • Dude, if I didn’t exist you’d need to find someone else to take out all that barely suppressed anger on with your substance free, one line insults. So I do feel that I have achieved at least one trivial thing with my life.

          • I dunno man, I think there’d be less replies to you in general if you didn’t constantly come out with wildly irrelevant hot takes that always completely ignore the context of whatever you’re talking about. For future references, vomiting out keywords doesn’t mean you’re on topic with what everyone else is talking about.

          • Man, so many of the usual QAnon suspects hate me. I genuinely can’t express how cut up that maxes me feel.

          • The fact you think anyone who thinks you are a tosser is a qanon member speaks volumes of who you are as a person.

          • We sure it’s a person and not a bot? The responses are so wildly off topic, irrelevant and peppered with keywords and no context that I’m not always entirely sure it’s a real person that’s responding.

  • The price of onr share/stock is not relative to another. Market capitalisation is the comparative measure. Crude example – a company trading at $900 per share could be worth far less than one trading at 50 cents per share.

    • Completely correct. It’s not an uncommon misconception, but Kotaku should know better and it’s not the first time that Kotaku commentators have made that mistake.

      Ash Parrish, professional investor that he is, bought AMC rather than GameStop for example because “$US300 ($391) per share price was a little too rich for our blood” and yet “AMC Entertainment stock looked nice at around $US11 ($14) a share.”

      • The AMC stock is a safer bet, you’ll lose less money if it goes badly and it’s easier to go up from a lower value.

        And once they get Covid under control cinema’s will go up.

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