Don’t forget that this is a market where most people believe TSLA is vastly overvalued.
I'll just leave everything in my three-fund portfolio though, cause boring is the right fit for me.
Meme stock just makes it look more like a huge opportunity on both sides and in the long run everyone knows which direction it goes from here so the opportunity is clearly more on the short side if they size their position so they can hold it long term. Even if there is the chance for further squeeze, I'm sure enough people will still feel this is a huge shorting opportunity that short interest will not go down much from here, and the higher it goes the more people will feel that way.
That wasn't a possibility before, but it is now. Given that, I don't think "the range everyone knows it will fall to eventually" is a foregone conclusion.
For example, they could make an online gaming platform using their relationships with game studios, or they could move into 'gaming cafes' using their retail space, or start designing games themselves using their storefronts for marketing.
It’s a retailer that sells video games. They’re not going to turn it around while Steam, PlayStation store, Amazon, etc exist.
It could, and GME trying to capitalize based on insane stock performance would be a real test of nerve, because it's one thing that could focus the news off the WSB vs institutions narrative and back on the business fundamentals of business, which still suck.
Maybe it works, maybe it just collapses the whole house of cards.
The shorts are in a corner now, their positions are underwater on paper and long whales have an incentive to keep it there.
2. Long whales also have plenty of incentive to sell. Namely they can bank their profits on a stock that is likely to collapse quickly
A hedge fund covering a short pays exactly the same price in the market as a meme-following Redditor or an intraday trading algorithm.