So 'superstonk' was created after all that. It was basically the crazies from WSB after the WSB mods wanted to tone down the conspiracy theories.

Prior to the GME squeeze, the talk on WallStreeBets was basically "GME is sound fundamentally, its got +revenue AND its shorted to hell, conditions are right for upward movement".

It wasn't about sticking it to anyone, screwing hedge funds, etc, it was like "we think short sellers are perhaps screwing up here, we suggest you buy some GME".

They weren't on to something with GME, their enthusiasm was its cause.

This is plainly wrong. Their enthusiasm did not create short interest in GameStop, they simply took advantage of it.

Sure, but it was self-fulfilling. It wasn't a brilliant analysis, it was a demonstration that a large group of loosely coordinated individual investors can move markets by collective action.

What exactly were they “onto” with GME? It isn’t exactly news that an investor with a short position will blow out if the stock increases in value by 10x or 100x.

“It isn’t exactly news that…” interesting that you say this considering it literally was news for weeks. Short squeezes are rare events.

Fact of the matter is WSB was right about GameStop when other investors were not. It may seem obvious now but was certainly not at the time.

You've misread my comment. Of course it was news, but it didn't reveal anything spectacular about the structure of the financial markets, at least certainly not something WSB predicted ahead of time (as other commenters note, Superstonk only arose after the GameStop situation to concentrate financial conspiracy theories to that sub alone).

Something like 140% of outstanding GME shares were shorted. They figured that out and then exploited it.

* are exploiting it

It's still going

GameStop as a business hasn't made any profit in 4 years while their revenues consistently decline. It is a dying unprofitable business, worth the scrap assets that can be salvaged on the balance sheet, not it's current market cap of $7.8 BILLION. Anyone buying or holding $GME is being swindled, a la FTX and crypto scams, by people interested in making big $$ betting against a $200m business being worth $7.8 BILLION.

I'll bet you've never even had one look at their balance sheet or income statement, are just winging it from Reddit comments when it comes to financial evaluation, and that should tell anyone rational, including yourself hopefully, whether you're with the smart money on this position... If not, enjoy the new QAnon.

r/wsb completed it's transformation into r/the_donald of dumb finance echo chamber by the advent of GME. Truly, they will both be case studies of the anti-wisdom of crowds when it comes to current digital interfaces with a sprinkle of bot propaganda.

I think it will be a case study in late-empire corruption and the failure of propaganda.

There's a reason the "buy" (not sell) button was turned off for a day on $GME alone. That's market manipulation. There's a reason it no charges were filed. The SEC openly admits it's corrupt. There are talking heads on the finance channels who openly admit the markets are rigged.

You're right, FTX was a scam. And SBF openly admitted fraudulent actions. So he's in jail, right? Oh, sorry, no -- he's a "distinguished" guest speaking on a New York Times panel.

It's all a scam. All of it. The difference with $GME is that, in this case, they got caught. Hedge funds naked shorted the stock and got caught. At some point they will need to cover and won't be able to. Here's some reading:

https://archive.org/details/superstonk-dd-mega-back-up/mode/...

You are mad because you think this stock is overvalued?? Well, guess what: The entire market is overvalued! It's all bullshit. P/E ratios are off the charts when we're facing a deep economic downturn. No one should be in the market -- at all. If there's one stock to hold, it's this and for three reasons: they naked shorted; they got caught; and they're fucked.

The reason the buy button was turned off is because when you buy a stock on any brokerage, you don't immediately own it, the shares still have to go through the clearinghouse. The brokerage needs to post collateral at the clearinghouse while they wait for the shares to deliver. The demand for GME was unprecedented, the clearinghouse raised their collateral requirements, and Robinhood didn't have the money to post collateral, even after raising a billion dollars overnight. It's very simple. There was an entire Congressional inquiry into this, which you can read into instead of spreading baseless conspiracy theories on HN.

Correct. Imagine, this guy is wasting hundreds of hours on this “hobby” reading r/superstonk, but still hasn’t even heard of the DTCC which every single trade of his is going through. Information diets really matter.

P/E ratios for the SP500 are 18, while Developed is 12 and Emerging are 11. That’s a 5.6%, 8%, and 9% real return, for an expected nominal yield of ~12%, 15%, 16%. Looks like good P/E ratios to me, and you’re out here acknowledging you’re buying unprofitable garbage co meme stocks. Don’t say you weren’t warned.

The current S&P500 10-year P/E Ratio is 29.3

So many people desperate to help me sell my position! Wow. Thanks.

"their mere interest in something doesn’t disqualify it" - It certainly raises suspicions though. It really feels like certain groups have gotten good at turning particular news events or ideas into memes and sharing them as widely as possible in order to push a narrative that manipulates the markets. Which is probably why this story is now on the front page of HN. We certainly saw this with crypto and now it feels to me at least like those same tactics are being applied more and more to the larger stock market.

I agree with this point. It isn’t the case that WSB interest disqualifies the viability of financial information… but it also doesn’t make it more credible.

The point I disagree with (and I think the original post is making) is just because an unpopular group (WSB) is interested in something, doesn’t discredit it.

> The point I disagree with (and I think the original post is making) is just because an unpopular group (WSB) is interested in something, doesn’t discredit it.

If that groups has consistently been wrong about everything for two years, then it absolutely does. It's like Jim Cramer: If he states something, there is at least a 90% chance that the opposite will happen.

They’re at 60% of the float locked up with DRS now. Once they get to 100% then the true measure of whether they were right or wrong can be ascertained.

> there is at least a 90% chance that the opposite will happen.

That'd be cool. You could make a lot of money. Unfortunately he's probably closer to 50%.

WSB ignored or laughed at roaring kitty until he showed actual large gains, and then they jumped on. They never proactively got anything right as far as I know.

Man, you just dredged up a painful memory

I was there watching him get shat upon, and thought "Man, maybe this guy's on to something.. ah, screw it, it's not worth the risk"

He was consistently posting about GME for a long time, slowly losing his life's savings to its mediocre performance in the process and getting laughed at by everyone. Before GME took off, he'd actually stopped posting to WSB for the most part since he'd get jeered about it so much, haha.