If the squeeze actually happens, then there is no limits to what shares will be worth. It has happened in the past.That’s just it, they are saying the real squeeze is yet to happen and gme shares true value is close to 20000/share etc.
If GameStop develops their own platform for games similar to what netflix or Microsoft game pass has, then I could definitely believe 30 or 50$/share but that hasn’t happened yet.
In simple terms:
1. Hedge funds borrow synthetic shares
2. Hedge funds short and or sell synthetic shares to tank price
3. Normal people buy synthetic shares
4. Shares are now real once they have purchased
5. Price goes up
6. Hedge funds have to give borrowed shares back
7. Float of shares is 50 million
8. Retail owns 100 million shares (50 percent used to be synthetic)
9. Hedge funds have to pay back more share than are available.
That is all different to the growth potential of gamestock.
If their plans come to fruition they will become the Amazon of electronic media retail. And every other retailer will have to use their tech/infrastructure.
Remember when Amazon just sent you books? Look at it now.
Thinking 50 is a fair evaluation is ludicrous at the moment, let alone for the future. But to understand the potential you really need to understand the technology, which most don't.
They can't see beyond the geeky brick games store, nerds playing games in the basement, etc.