Help me explain to husband this AMC thing. I’m clueless about the stock market but know it’s a barometer for many of you. All I’ve ever known was it’s rigged. I mentioned to husband maybe he needed to buy based on a couple of posts I’ve seen on this board. Thanks in advance pedes!
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In my opinion, GME (GameStop) is the real play.
It has significantly fewer shares, so the squeeze will be much more pronounced. The industry is less susceptible to be hurt by any COVID restrictions. The CEO is top notch. (former head of Chewy) They keep poaching Amazon talent. And if you need further proof, the MSM keeps telling everyone to drop GME and to buy AMC. So, there ya go.
None of this is financial advice, blah blah. If you want more non-financial advice, check out /r/superstonk on Reddit. I lurk there because I closed my account a long time ago.
Oh, and what happened is the greedy hedge funds naked shorted the stock at a ridiculous level. They were sure it would fail like Sears, blockbuster, and toys r us and they would never have to pay back the money. Now, game stop is as strong as ever, and they are royally screwed.
Buy silver
the idea behind gme/amc is that x shares are supposed to exist, but (x * y) shares are in circulation due to something called naked shorting (selling shares that don't exist)
if retailers own (x + z) shares but only x shares are supposed to exist, then when the house of cards comes crashing down, then retailers can literally name their price when wallstreet has finally forced to close out their short positions.
for what it's worth, forget about amc. gme is the play. amc has zero advantages over gme. some might argue that amc is cheaper, but those folks don't know how market cap works. amc is not cheaper.
https://www.investopedia.com/terms/m/marketcapitalization.asp
this is a very simplified explanation but i think it's good enough for people who don't know anything but maybe want to test the waters. the question you have to ask yourself and do research into is if you think it's plausible that retailers and entities friendly to retail own (x + z) shares.
Thank you. This is exactly what I was looking for for myself. I have no interest in the stock market but my husband has lost thousands in it and he was curious when I mentioned to him what many here were doing. I was basically just laughing along with them and then husband asks me again this morning about it and I didn’t know how to explain it to him except that anons were sticking it to the big corporate world and making money off of it. We know the market is going to crash. If we were to buy some gme would we make money when the market does go down or is it too big of a risk? Thank you again for taking the time to paint the picture for me. It is much appreciated
Basically there are too many shorted shares and the big hedge funds have to repurchase them and if they are directly registered, there won’t be enough shares for them to repurchase, driving the price to the moon. Go to Reddit and type in gme and read. Also type in amc and search and read. Tons of info, when you see something interesting, click and it will open more. You don’t have to be a member of Reddit to read, I’m not a member.