Does anybody have any idea if any of you thought that gamestop was history or something which is a thing of a past, that we just got reminded that it is not done yet? I mean it’s far from over, in nearly every other video i make. I say that the market makes no sense, but the truth is that market makes. No sense is an understatement. Now i mean we had a crazy last week and then, just a day before yesterday we had a major pullback where pretty much all tech stocks got slaughtered. It was like a bloodbath everywhere and then suddenly, out of nowhere, we have gamestop or gme stock which, to be honest, like a true phoenix rose from its ashes and literally doubled within the last hour of the day. Yesterday i mean it went from 40 something dollar at before three o’clock in the afternoon to 91 at four o’clock in the afternoon and closed that trading was halted twice to break the steep rise, but nothing really could stop it and in case, if you thought that It’S done there, then you would be so wrong after market. It has been consistently rising and by 5 pm it was 183 dollars. I mean i don’t even know what to say anymore, but i have to so in this video let’s talk about what happened. What can happen and most likely what will happen today with the gamestop stock and how you can play it let’s do that right after the intro what’s going on you guys welcome back to the channel if you haven’t met, my name is prati and i have a Background in technology and investment, banking – and i make videos on personal finance and stock market investing so that you can maximize your returns in the market.
If you enjoy this kind of content, then do consider subscribing. Also, if you want to support the channel, then don’t forget we will still offering two free stocks. If you open an account with them and deposit a hundred dollars, i will leave the link in the description below just in case if you’re interested okay. So the gme dinosaur has woken up after about a month later, and it is still rising up and why well, to be honest for no reason there isn’t much of any catalyst there. In fact, the only news we have is that the company’s cfo has squared the company announced that jim bell is resigning from his role of executive vice president and chief financial officer on march 26th. The company has also announced that diana jay, who is currently the senior vice president and chief accounting officer of gamestop, will be an interim chief financial officer effective immediately till they find someone else for that position. Now, according to bloomberg report, the cfo did not really leave voluntarily, but rather he was fired for failed strategies, okay, regardless so normally in the cases like these in most of the companies, a news like this will act as a negative catalyst and may push the stock Down but apparently in the alternate universe, where gamestop belongs, it works a little differently. It quadruples the stock, so the company stated – and i quote: gamestop will likely look for a cfo replacement with a tech compared to retail background, as gamestop focuses on e commerce growth.
So i think that is the catalyst. I think the fact that gamestop wants to focus on e commerce and transition their business. This was taken very positively by the investors, and this gave a ray of hope to gamestop bulls about company’s future and they went all gungo on the stock in the last hour, that’s pretty much what i can think of, but see here’s the thing not all is So straightforward also the same time when all of this was happening with gamestop stock. The reddit website, where the wall street gang resides, went down for about 30 minutes and the company did not disclose what exactly happened. I mean i swear. My head is exploding with conspiracy theories right now. I have no idea what to say: okay, but more seriously, here’s the thing now we know earlier. In january, the wall street bets had squeezed the stock because the gme stock was shorted about 100 and of course it made sense to squeeze it then, but since january 29 the stock is only about 40 shorted and most traders are not shorting the stock. I mean. I guess it’s, one of those ones burned twice shy kind of situation, because no one wants to mess with gme stock anymore. So why did the stock double? I mean seriously, why? Why did the stock double? Is this a squeeze a round two it’s kind of hard to tell, although 40 short interest is still no small number and a sort of a mini squeeze is still possible but i’m, not sure if that is the true reason for this united frenzy, which we saw Yesterday, by the way, this 40 short interest data is from january 29, but between then and now the short interest has increased or doubled.
Then, in that case, this can be an another wide ride with rockets flying to the moon. We’Ll got ta just wait and see what happens so according to me right now, i have two theories for this gamestop search and i’m going to share with you. The first is that the exit of the current cfo is probably construed as a sign by the bulls, as company making strides to improve and grow its business in coming few years, which is great. The company has already made it clear that they want to focus on technology and e commerce, which is brilliant, because no matter how much we love gamestop and it is sort of a symbol of our childhood but it’s definitely an archaic business model. Now don’t hate me for saying that it won’t be easy for the company to survive with the brick and mortar model for very long to come now. The new cfo is rightfully being considered as a positive sign for the company, and the shareholders will get some hope that the company isn’t just lying around waiting for things to happen rather they’re trying to make things happen and that’s fantastic. Now that was my first theory now. My second theory is because of what happened on the other side of the country. Now this is a little more controversial in an interview, charlie munger, who is the vice chairman of berkshire hathaway and a long time, business partner. Warren buffett strongly condemned the gamestop short squeeze and called it a dirty practice now, in fact, in his word, it’s a dirty way to make money at the annual shareholder meeting yesterday he was asked about the entire gamestop squeeze situation and he was but how to put It, let me just say very critical of the traders and also towards robinhood.
He said for the investors – and i quote, that’s the kind of thing that can happen when you get a whole lot of people who are using liquid stock markets to gamble the way they would in betting on race horses. He didn’t just stop there. He was very critical of robinhood too, and he said, and the frenzy is fed by people who are getting commissions and other revenues out of this new bunch of gamblers and of course, when things get extreme, you have things like that short squeeze. And finally, he ended by saying it’s really stupid to have a culture which encourages as much gambling in stocks by people who have the mindset of race track, bettors and, of course, it’s going to create trouble, as it did now here’s my theory. Now you can hate him, you call him a boomer, throw eggs at him. I don’t really care but here’s the thing he is charlie bunger i mean he’s a smart dude. I mean as smart as they get as smart as warren buffett himself is now. I don’t know if this statement in any way contributed towards this stock spike, or maybe it motivated investors or got them mad to go out and spike the stock to make a point or something or just wanted, to show these boomers that who we are kind of Thing, like you know the energy they had last time they wanted to stick it to the suits.
I mean this is just one of my theories and may or may not be true. I’M, just totally speculative about this. But the point is that tomorrow is going to be an interesting play if you’re excited towards the stock again or it has somehow rekindled the hope in you regarding gme stock, and you think this time it will be different or if you missed out the last time And this time is your opportunity to make money. Then here is my recommendation. Tread with extreme caution, keep your emotions out of this. A lot of people got burnt last time and although there is a good chance of the stock spiking much further up today, but then again no one knows what can happen. Will this spike and drop again? Is this another short squeeze? Nobody knows if it goes up, then it can come down at the same speed or even more and more than anything else, if it spikes too soon too high or too fast. The new york stock exchange has the authority to hard trading too. Now, if that happens, then we know historically, the stocks tend to drop 50 or more so before you invest anything be careful now, if you’re one of those who’s got stuck with gme stock from january. Maybe you came into the game too late and you were late to the party and got stuck with the stock and had to take huge losses. I mean if you’re, one of those bag holders from the last squeeze, and you were stuck with the stocks at the bottom, and you were hating yourself to be in that position at half the value of your investment, and tomorrow is the day.
This might be an opportunity to sell and get out and recover your initial investment now don’t get greedy don’t. Think, oh, let me wait for it to go back to 400. Like the last time don’t do no diamond hands. This might be your opportunity to recover investment. We don’t know to be honest, what will happen tomorrow and no one can tell or guarantee, if you’re stuck with the stock from last time, and you see an opportunity to recovery investment and get out then in my personal and non financial opinion. Just do that again. This is not a financial advice. This is video for entertainment purposes. Only do your own research and make smart investing decisions. Don’T lose money in the market. See gme is going to go down in the history as a cult stock, but remember in the stock market. You don’t get paid for emotions, play smart and play safe. Okay, this is it. This is all i have for gamestop for today. If you like, the video then do hit the like button and if you haven’t subscribed then do consider subscribing i post many times a week.