Gamestop Reddit short squeeze

[Cuchulainn2016]

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.

If the squeeze actually happens, then there is no limits to what shares will be worth. It has happened in the past.

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.

 

[eradicator]

Right. There is already game pass for Sony , Xbox, pc as well as game fly(they mail games through the mail for rentals)

I haven’t seen what GameStop is going to come up with to counter these and if they will be able to compete in the future. But yes it is possible.

I can’t remember which generation, it might have been ps4 and Xbox one, where Microsoft initially said they were going to make their system digital only, Sony announced that they were still using discs and were universally lauded while Microsoft had to back track and change their system to a disc as well.

As for “where does GameStop fit into all of this”? We don’t know yet

 

[FrancisK]

If the squeeze actually happens, then there is no limits to what shares will be worth. It has happened in the past.

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.

Please help me understand the “technology” that GameStop possesses which is going to make them like Amazon.

 

[Cuchulainn2016]

Please help me understand the “technology” that GameStop possesses which is going to make them like Amazon.

I explained it earlier in this thread. Proper and full implementation of crypto/blockchain/nft, for the first time ever.

 

[FrancisK]

I explained it earlier in this thread. Proper and full implementation of crypto/blockchain/nft, for the first time ever.

Why would using crypto/blockchain/nft result in more sales, for the novelty of it? How is that proprietary in any way to gamestop?

 

[rainy]

Short interest higher than originally expected. This would put it slightly above 20%.

Appears the hedgies borrowed shares and didn't short them, to return them to make it appear as if they had started covering. All the tricks they play lol. So we know two things. Short interest is even higher than we thought and the hedgies are too scared to short the shares they recently borrowed......

 

[Cuchulainn2016]

Why would using crypto/blockchain/nft result in more sales, for the novelty of it? How is that proprietary in any way to gamestop?

Noone, ever, has properly implemented a fully integrated blockchain/nft system in a digital marketplace (digital as in digital items).

Whoever does it first, will have everyone else jumping on their infrastructure.

All digital media sold to consumers is not owned by the consumer, its, in simple terms, a rental.

NFT/blockchain allows digital media to be owned by the consumer, and they can then do everything with that a consumer with a real item can do, for example, selling it on to another.

This, plus Gamestop moving into eSports (more money than you can imagine), and producing its own crypto (could end up the defacto in game currency for ALL games) are massive ecommerce game changers.

That plus the free publicity and brand loyalty they have got over the past 6 months, and the half a billion dollars to fund the above are all good.

Its the difference between Netflix posting you out a DVD and what they are now.

 

[FrancisK]

Noone, ever, has properly implemented a fully integrated blockchain/nft system in a digital marketplace (digital as in digital items).

Whoever does it first, will have everyone else jumping on their infrastructure.

All digital media sold to consumers is not owned by the consumer, its, in simple terms, a rental.

NFT/blockchain allows digital media to be owned by the consumer, and they can then do everything with that a consumer with a real item can do, for example, selling it on to another.

This, plus Gamestop moving into eSports (more money than you can imagine), and producing its own crypto (could end up the defacto in game currency for ALL games) are massive ecommerce game changers.

That plus the free publicity and brand loyalty they have got over the past 6 months, and the half a billion dollars to fund the above are all good.

Its the difference between Netflix posting you out a DVD and what they are now.

Blockchain and crypto yea got it very cool stuff, but how does that lead to more sales and again how is that proprietary in any way to Gamestop? Is gamestop going to start being a software company and sell on their own platform? They're just going to take over for Microsoft, Sony, Nintendo and Steam? Because that's the only way any of what you said would be viable, you can't give people control over media that you don't own.

What stops the people who actually control the video game industry, Gamestop is not in the video game industry they are a retailer, from doing it themselves if it's actually viable or a better model?

Why would anyone allow Gamestop to control their IP or even compete with them on their platforms?

Esports rely on the IP of others, again why would the heavy hitters allow Gamestop to just swoop in?

Gamestop creating their own crypto would essentially amount to a gift card. Why would Sony, Nintendo, Steam or Microsoft allow a competitors currency to be used on their platforms?

Gamestop doesn't have a brand they are a retailer they sell others brands, the loyalty is to the IP which they don't control and won't have access to. The best they can hope for and their best case scenario is some garbage video games that the big fish didn't want anything to do with to work with them.


This is a whole different business it has nothing to do with what gamestop does or is now and the infrastructure for them being able to compete in this realm isn't there. Even for something as simple as ecommerce they are 10 years too late to that party at the least and as far as video games themselves, not the retail sale of them the industry itself, they have no involvement with it at all. The video game industry comes down to IP control and they have none, zero.



I'm sorry I don't see it, it doesn't make any business sense it doesn't have any proprietary value and you're relying on competition to let you in the door. None of it is in concrete reasoning it's all just hopes and buzzwords that don't add up. As a business owner if you put this plan in front of me I would congratulate you for having such a vision and then delete your contact info after I shook your hand and walked you out the door.


The thing going on with gamestop stock right now has nothing to do with their actual value as a company, whoever fed you this stuff is trying to convince you otherwise because they have a vested interest in doing so.

 

[Cuchulainn2016]

Blockchain and crypto yea got it very cool stuff, but how does that lead to more sales and again how is that proprietary in any way to Gamestop? Is gamestop going to start being a software company and sell on their own platform? They're just going to take over for Microsoft, Sony, Nintendo and Steam? Because that's the only way any of what you said would be viable, you can't give people control over media that you don't own.

What stops the people who actually control the video game industry, Gamestop is not in the video game industry they are a retailer, from doing it themselves if it's actually viable or a better model?

Why would anyone allow Gamestop to control their IP or even compete with them on their platforms?

Esports rely on the IP of others, again why would the heavy hitters allow Gamestop to just swoop in?

Gamestop creating their own crypto would essentially amount to a gift card. Why would Sony, Nintendo, Steam or Microsoft allow a competitors currency to be used on their platforms?

Gamestop doesn't have a brand they are a retailer they sell others brands, the loyalty is to the IP which they don't control and won't have access to. The best they can hope for and their best case scenario is some garbage video games that the big fish didn't want anything to do with to work with them.


This is a whole different business it has nothing to do with what gamestop does or is now and the infrastructure for them being able to compete in this realm isn't there. Even for something as simple as ecommerce they are 10 years too late to that party at the least and as far as video games themselves, not the retail sale of them the industry itself, they have no involvement with it at all. The video game industry comes down to IP control and they have none, zero.



I'm sorry I don't see it, it doesn't make any business sense it doesn't have any proprietary value and you're relying on competition to let you in the door. None of it is in concrete reasoning it's all just hopes and buzzwords that don't add up. As a business owner if you put this plan in front of me I would congratulate you for having such a vision and then delete your contact info after I shook your hand and walked you out the door.


The thing going on with gamestop stock right now has nothing to do with their actual value as a company, whoever fed you this stuff is trying to convince you otherwise because they have a vested interest in doing so.

First off, I dont have a vested interest as my initial investment is more than paid off.

I explained the rest previously in this thread. I get that some people just dont get the tech implications, just as people never thought the Kindle would catch on.

Its simple, whoever builds it first, wins. And its easier to build from nothing than to retool your entire existing infrastructure into something new.

I never said anything about Gamestop controlling any other IP, but they will be the only vendor allowing you to BUY something compared to all the others that allow you to RENT something. At the same price. DuckDuckgo online videos of events that were sold as they were permanent linked to the owner, and the price they earned, whilst they were still free on youtube.

You mentioned Steam, what IP control does steam have over the games you rent from them to play through their portal? None.

You are confused in that they are going to COMPETE with someone else, they wont, they will bring a new way of doing things that there is no competition for.

With regards to the crypto, games are mostly made by game companies, all the ones with microtransactions offer a myriad of payment options to buy stuff in the game.

Here is an example of how it could work (bearing in mind im not one of the experts that Gamestop has, so they can probably do it better).

Example 1 - I like a new game, I preorder it then I buy (rent) it from Steam, I use my credit card to buy a cool ingame gun. I finish the game. I never play or do anything with it again. I buy (rent) a new game.

Example 2 - I like a new game. I buy it from Gamestops online portal. I get some GameCoin as I preordered it as a reward. I use the GameCoin to purchase a cool gun ingame. I finish the game. I can trade the game on the second hand market (via Gamestops online portal) to someone else for them to own (Gamestop takes a cut of the transaction). I cant be bothered with that, so I trade it in for a deduction on the latest game I like and I buy that. i also keep the ingame gun i purchased cause its mine, and i like it, and I put it in my online trophy case, cause im a geeky nerd like that. I use my remaining GameCoin to buy a cool ingame gun, for my new game, in the same camo pattern as used by the eSports team I watched at the weekend.

Which of the above is going to be a better model for the consumer.

I understand its hard to get if you dont have a basic grounding in how tech and ecommerce actually works, but it (NFTs/blockchain done right) is a total paradigm shift that has implications far beyond gaming and online stores.

 

[eradicator]

Noone, ever, has properly implemented a fully integrated blockchain/nft system in a digital marketplace (digital as in digital items).

Whoever does it first, will have everyone else jumping on their infrastructure.

There are a few crypto currencies in Japan that are used as currency in arcades.

One of them is Enjin coin, it has an actual purpose aside from speculation, I’m not sure if this is the sort of utility you are referring to? Probably not as GameStop is not an arcade

Enjin Coin Becomes the First Gaming Cryptocurrency Approved by Japanese Regulators – Altcoins Bitcoin News

Enjin Coin became the first gaming cryptocurrency approved in Japan after clearing out the well-known tough country regulator’s requirements.

news.bitcoin.com

 

[Cuchulainn2016]

There are a few crypto currencies in Japan that are used as currency in arcades.

One of them is Enjin coin, it has an actual purpose aside from speculation, I’m not sure if this is the sort of utility you are referring to? Probably not as GameStop is not an arcade

Enjin Coin Becomes the First Gaming Cryptocurrency Approved by Japanese Regulators – Altcoins Bitcoin News

Enjin Coin became the first gaming cryptocurrency approved in Japan after clearing out the well-known tough country regulator’s requirements.

news.bitcoin.com

Nope, lots of places have done localised crypto, individual NFTs, or utilised blockchain on their own. Its the full integration of NFTs and blockchain that i am talking about. The potential crypto is just the cherry on top.

 

[eradicator]

Ok I see. I can see how it could work out in GameStop’s favor, and also how it could be an unmitigated disaster.
If GameStop starts giving the option for customers to trade in used games for their crypto credit, it could confuse and frustrate employees and customers alike, or it could be really simple and popular.

It hasn’t happened yet so it’s useless to speculate about what may happen. GameStop could be the next toys r us, circuit city or Sears, or the next Amazon or Netflix, or more likely somewhere in between. It’s a bit early to say.

 

[FrancisK]

First off, I dont have a vested interest as my initial investment is more than paid off.

I explained the rest previously in this thread. I get that some people just dont get the tech implications, just as people never thought the Kindle would catch on.

Its simple, whoever builds it first, wins. And its easier to build from nothing than to retool your entire existing infrastructure into something new.

I never said anything about Gamestop controlling any other IP, but they will be the only vendor allowing you to BUY something compared to all the others that allow you to RENT something. At the same price. DuckDuckgo online videos of events that were sold as they were permanent linked to the owner, and the price they earned, whilst they were still free on youtube.

You mentioned Steam, what IP control does steam have over the games you rent from them to play through their portal? None.

You are confused in that they are going to COMPETE with someone else, they wont, they will bring a new way of doing things that there is no competition for.

With regards to the crypto, games are mostly made by game companies, all the ones with microtransactions offer a myriad of payment options to buy stuff in the game.

Here is an example of how it could work (bearing in mind im not one of the experts that Gamestop has, so they can probably do it better).

Example 1 - I like a new game, I preorder it then I buy (rent) it from Steam, I use my credit card to buy a cool ingame gun. I finish the game. I never play or do anything with it again. I buy (rent) a new game.

Example 2 - I like a new game. I buy it from Gamestops online portal. I get some GameCoin as I preordered it as a reward. I use the GameCoin to purchase a cool gun ingame. I finish the game. I can trade the game on the second hand market (via Gamestops online portal) to someone else for them to own (Gamestop takes a cut of the transaction). I cant be bothered with that, so I trade it in for a deduction on the latest game I like and I buy that. i also keep the ingame gun i purchased cause its mine, and i like it, and I put it in my online trophy case, cause im a geeky nerd like that. I use my remaining GameCoin to buy a cool ingame gun, for my new game, in the same camo pattern as used by the eSports team I watched at the weekend.

Which of the above is going to be a better model for the consumer.

I understand its hard to get if you dont have a basic grounding in how tech and ecommerce actually works, but it (NFTs/blockchain done right) is a total paradigm shift that has implications far beyond gaming and online stores.

First and absolutely foremost I did not say you had a vested interest in anything I said the people who are feeding this information to you do. I am not accusing you at all of any malicious intent nor am I talking down to YOU specifically or personally. As a business minded person who does e-commerce among other things I am specifically interested in the conversation that is all.


I could go on and on but really the only thing I need to say is that you can’t sell something that doesn’t belong to you. How is GameStop going to sell something they don’t own nor are they licensed/authorized to sell?

I understand the basic framework is that they want to transition their in store model to e-commerce. Why would anybody who owns the IP allow that to happen when there is nothing in it for them? In fact it devalues their own product by allowing it to be traded.

 

[Cuchulainn2016]

Ok I see. I can see how it could work out in GameStop’s favor, and also how it could be an unmitigated disaster.
If GameStop starts giving the option for customers to trade in used games for their crypto credit, it could confuse and frustrate employees and customers alike, or it could be really simple and popular.

It hasn’t happened yet so it’s useless to speculate about what may happen. GameStop could be the next toys r us, circuit city or Sears, or the next Amazon or Netflix, or more likely somewhere in between. It’s a bit early to say.

Exactly, it could go either way. But if you look at the former ecommerce people they have been hiring it looks good, plus they have the cash to pay for it.

And if/when it goes live, then they own that infrastructure and can licence it to other retailers.

But again, it has even wider implications.

Lets say you happen to record a Presidential candidate having a stroke one day as they try to get into the back of their vehicle. There are rumors about the health of this candidate, but her people and the MSM all say she is perfectly healthy.

You could upload the video to social media. Or.... you could use the "CitizenJourno" app to assign that video an NFT, and those details are securely held via blockchain. You now own that video, and can sell it to the right media companies. You also own the rights to that video if anyone reproduces it without your information.

And whoever first comes out with a truly integrated NFT/blockchain solution will be the one that everyone comes to to buy a licence from them.

 

[Cuchulainn2016]

First and absolutely foremost I did not say you had a vested interest in anything I said the people who are feeding this information to you do. I am not accusing you at all of any malicious intent nor am I talking down to YOU specifically or personally. As a business minded person who does e-commerce among other things I am specifically interested in the conversation that is all.


I could go on and on but really the only thing I need to say is that you can’t sell something that doesn’t belong to you. How is GameStop going to sell something they don’t own nor are they licensed/authorized to sell?

I understand the basic framework is that they want to transition their in store model to e-commerce. Why would anybody who owns the IP allow that to happen when there is nothing in it for them? In fact it devalues their own product by allowing it to be traded.

Ah, I see.

Think of this, why would someone allow their IP to be used like that. As in bought and sold, in a shop, as a physical item?

The aberration has always been the current model for digital media, where you effectively RENT an item as long as the SELLER allows you to.

The owner or producer of the item doesnt care how its sold or in what way its sold, just as long as its sold and they make a profit.

Its got nothing to do with an IP. Its the method of trade.

Noone has really got a way to trade digital media in the way you trade physical items.

And on top of that, there is all the little downstream things that can happen.

For example, a game company will kill themselves to get access to a digital store that has NFT/blockchain so people can own things. Why? Microtransactions!

Not only will you, as a consumer, own the game, but you will personally own all the ingame items you purhcase. Keep them when you sell the game as they are seperate purchases. Take them to the next game in the series released and pay a small amount to have them updated for the new game, etc, etc, and etc.

You could own, for example, a first edition, signed copy of a book, in digital form. With the provenance of said book ensured by NFT/Blockchain.

There are so many examples you can dream up. And people growing up today, consider digital as real as physical, for better or worse.

 

[FrancisK]

Ah, I see.

Think of this, why would someone allow their IP to be used like that. As in bought and sold, in a shop, as a physical item?

The aberration has always been the current model for digital media, where you effectively RENT an item as long as the SELLER allows you to.

The owner or producer of the item doesnt care how its sold or in what way its sold, just as long as its sold and they make a profit.

Its got nothing to do with an IP. Its the method of trade.

Noone has really got a way to trade digital media in the way you trade physical items.

And on top of that, there is all the little downstream things that can happen.

For example, a game company will kill themselves to get access to a digital store that has NFT/blockchain so people can own things. Why? Microtransactions!

Not only will you, as a consumer, own the game, but you will personally own all the ingame items you purhcase. Keep them when you sell the game as they are seperate purchases. Take them to the next game in the series released and pay a small amount to have them updated for the new game, etc, etc, and etc.

You could own, for example, a first edition, signed copy of a book, in digital form. With the provenance of said book ensured by NFT/Blockchain.

There are so many examples you can dream up. And people growing up today, consider digital as real as physical, for better or worse.

I definitely understand why it would benefit the consumer, they would be all over it.

My hang up is why the IP owner would allow it to happen. Why would they want to severely devalue their own product by allowing it to be traded? Why would they allow this to happen?

The only way I could see it working is if GameStop bought exclusive rights to games which I don’t think I need to explain why that would not be a feasible model at all.

 

[WaterBottle]

"No one has ever done it"

That should be the clue right there. If the titans of the software industry haven't done it, then it isn't technically or commercially feasible.

I wouldn't put faith in a brick and mortar retailer transitioning to ecommerce to develop an industry changing protocol when the big boys haven't bothered to do so.

Good luck.

 

[fastandfurious]

Long time GME bull here looking for bears. I defended GME when it was $20, and then defended it when it crashed down to $40. I think fair value for a revitalized GME under Ryan Cohen is around $150. The source for this number is https://gmedd.com/

IMO, discussion about revitalization (new board, shift to competitive gaming, NFT's, shipping, digital gaming, etc) are pointless because factoring all that in, and assuming the effort is successful, puts a PT at around $150. So it's a useless point while the stock hovers around $300 and threatens to go higher.

I've read hours worth of DD on Reddit about the short squeeze. It's very convincing stuff. That being said, I'm not in finance, and I don't speak finance-elese, so all that could be an elaborate plot by much more sophisticated actors manipulating the peasant class.

The shareholder meeting spooked me. I sold before earnings because I knew that even on good news, it would tank. I was right, I made a quick lick, and I'm looking for an opportunity to buy back in. The reason for this is because I know this company and this stock more thoroughly than anything I've ever researched on the markets, and since it is such a volatile stock, I have had a very strong string of luck timing tops and bottoms. I know this stock so much better than anything else that I can't stop trading it.

But I'm nervous. Maybe the short squeeze isn't a guarantee, despite what the subreddits keep repeating. There are a million things that could happen that could stop it, 99% of which we plebians could never think up.

What are the bear theses? I've read

The Squeeze is just an advertising campaign, GME is just the world's biggest ever pump-and-dump, big players like DFV aren't really sending cryptic tweets, and hedge funds are actually long GME and are the ones pumping the stock​

​

Short Interest is really at the widely reported 20%, and the theory that HF's are secretly shorting the stock thru "dark pools" or by shorting ETF's carrying GME is just a conspiracy theory.​

​

To the second point: If Short Interest was really only 20%, that seems kinda low for a stock that is so obviously overvalued in a fundamental sense. If $150 is a Fair Value for this stock, under the optimistic assumption that the entire revitalization effort succeeds, then how is there not significantly more than 20% SI for this wildly volatile and overvalued stock? If you thought GME was worth $150, at an optimistic position, how could you NOT short it at $300+? If this were the case, the only plausible explanation I could think of, is that the shorters are scared of retail. (Note: A SI of 0%-4% is considered bullish, so 20% SI is actually pretty high).

 

[Cuchulainn2016]

I definitely understand why it would benefit the consumer, they would be all over it.

My hang up is why the IP owner would allow it to happen. Why would they want to severely devalue their own product by allowing it to be traded? Why would they allow this to happen?

The only way I could see it working is if GameStop bought exclusive rights to games which I don’t think I need to explain why that would not be a feasible model at all.

Ok, well the IP owner allows it to happen all the time, when the item is a physical product. So, I can buy a game in dvd form in a physical shop, and I can trade that in later.
Physical shops don't have to buy the rights to the IP to sell the dvd.
The IP owners are also happy for it to happen digitally.
The problem is the vendors aren't set up to do it as they are still working on a digital devices model that is over a decade old.
In simple terms, it makes the digital marketplace functionally identical to how a physical marketplace operates, with the inherent benefits of that model and without the obvious overheads.

 

[Cuchulainn2016]

"No one has ever done it"

That should be the clue right there. If the titans of the software industry haven't done it, then it isn't technically or commercially feasible.

I wouldn't put faith in a brick and mortar retailer transitioning to ecommerce to develop an industry changing protocol when the big boys haven't bothered to do so.

Good luck.

Lots of places have done it piecemeal, and as a gimmick.

However, to have it underpin your system, you have to build it in from the ground up. It's not that difficult to do, but if you are Steam, for example, you have to tear down your old infrastructure and rebuild it, as you can't just bolt it on afterwards.