Jordan Belfort: GameStop frenzy a ‘modified pump and dump’

78 comments

"Wolf of Wall Street" author Jordan Belfort discusses GameStop's stock surge and what it means for Wall Street investors.

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78 comments

    3. Yup. I’m very disappointed. If they can limit trading in whatever stock, they’re just another profiteering liar.

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    4. @Stephane Sanan They had to close down because they couldn’t… They ain’t gonna buy it back. So regardless of the intent, its just a pump and dump now and whoever still has money in there is in for a world of hurt.

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    1. @Plus New I’ve doing bitcoin for like 5 years and one of the forums I follow was talking about this GameStop stuff so I just put some money in it on the off chance it went. I would just look up what they think the name “GameStop” is that they are going to push. A few of the rumors are up above. But it’s still a risk and you should never put money in that you aren’t ok with never seeing again

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    3. @Plus New I wouldn’t right now. It just had a big spike so I’d think it will come down some in the near future. I would say go for it the next time it has a big drop in price though. I think it will have a giant boom in the next 2-5 years

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    4. @V I cool advice. I just need to do some more research on Bitcoin and investing in general. It’s so much information out there that it’s challenging to weed out incorrect stuff.

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    5. @Plus New exactly. And I’m no expert just throwing some basic advice out. And you can read yourself in circles with all the disinformation out there. I know I have lol. Good luck 🍻

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    5. I’m fucking holding onto these 3 shares with 😂✊💎 they ain’t getting my fucking stonks until all the big hedgies shorts expire! Hold the fucking line boys! Let’s show them the power of Diamond hands and get these tendies! 😂✊💎🚀🚀🚀🚀🚀🚀🚀🚀🚀

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  7. Um no it isn’t, the hedge funds borrowed money to short this stock over 100% of the available shares and got caught by regular Joe’s that figured out this and bought the stock knowing it would have to come back up because of the shorts (bets that the stock would go down when they were intentionally manipulating it to go down).

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    1. @Kikeordaz Martinez Are you even aware of what GameStop is? It’s largely a video game B&M (red flag #1) retailer that primarily made profit from used game sales (red flag #2). This company was already dying thanks to Amazon and Best Buy having better selection/service/prices, people switching over to digital from physical media, Sony creating a disc-less PlayStation 5 model, Microsoft offering older Xbox titles on their online subscription service, etc.
      Add in Funko POPs being a fad and Covid fears gutting the preowned market, along with no real solutions offered by upper management to fix this, it was basically already in motion to become the next Blockbuster in 5-10 years.
      Their stock price before reddit was what it actually was worth.

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    2. @J I still buy games there, many of us do. The fact is, hedge fund managers were massively undermining its value (Serious estimates calculate by 140%) compromising its existence even further. Some geeks detected the scheme and bet against those managers and did the exact opposite. How was that unfair or illegal in the world of financial speculation? None of the 2 positions reflect the true value, but I rather see Wall Street wolves lose than my Reddit fellow gamers.

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    3. @Kikeordaz Martinez Many people (used to) shop at K-mart, Sears, etc. too, but that doesn’t change how those companies were reporting lower sales/revenue year after year by losing out to retailers like Amazon and Walmart. GameStop is in the same boat, and this was the case long before the option to short-sell their stock appeared appealing to investors.
      The company never had glowing reviews on service either within the online community, esp. on Reddit, where I remember subreddits discussing GameStop (transaction) horror stories and general dislike going back years.

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    4. @J What’s your point? I would be equally against Wall Street vultures attacking has beens like K-mart and Sears in the same manner that they went after Gamestop. This type of blatant manipulation by the big hedge funds should be illegal! I love to see the little guys, collectively, hit ’em where it hurts. Well done, WSB.

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    5. @Ron H Seeing that the point flew completely over your head, let me explain one more time: GameStop’s value has little to do with being shorted on the market, and more to do with the changing times.

      Netflix/streaming killed Blockbuster, Amazon and big B&M chains killed small mom & pop stores, etc. GameStop has been, for the last 5 years, bleeding money and their stock value plummeting, with them doing little to innovate or diversify their business operations to survive.

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  8. Shorting 140% done all the time, totally fine and ethical. The poors who we won’t let bailout with 2k checks theft and greedy, gotcha!

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  9. So it’s totally ok for billionaire hedge funds to short sell and drive a company into the ground, but the moment those same hedge funds start losing money because of regular people trading, they shut it down. Eat the rich.

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    2. @D Jaquith have you read the Reddit forums… you will see a whole lot of people saying “we have nothing to lose”. When you are a broke millennial, which most are, the couple thousand you got is literally nothing in a world where you have no hope of buying a house, paying off your student loan, or having a upwardly mobile secure career.

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    3. @Loretta Green .. You can also find millennials that are multi-millionaires. Anybody that reads social media and thinks that that’s reality deserves to lose everything because it’s not.

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    4. @amber crane except when you need that money when you have to decide between life-saving hospital operation and losing your home.

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    1. Can any of them explain what money is? It’s more of a belief. Baseball cards, beanie babies, artwork, 17th century Holland tulips all valuable at one time……

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    3. “Economic Experts” on tv are serving their own interests and agendas. It’s like this… imagine going on a jungle safari run by “Economic Experts”. But purposely being lead to a shack where bandits rob everyone. This is what they do. It is what they have always done. These trading firms aren’t the only ones that should face civil lawsuits, the Media should as well.

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    4. @Jubjub Tubs Hahah man the amount of people that think this is some populist uprising is hilarious.

      You guys stuck it to Wall Street eh?

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    5. @K GM Why are you trying to play that weird Tribalism Game with your chosen dialogue?

      Estimated 14+ billion lost by hedge funds that went to roughly 3+ million people. Wealth was moved away from the wealthy, using methods and tactics the wealthy themselves have used. Once that happened, well… we see how the wealthy and those with power are responding.

      Dressing up the simple base narrative is an attempt to cloud people and sow discord. Why are you doing that?

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  14. They call it speculation when the short information is literally out there for the public to exploit. Big boys mad we beat them at their own game, now they’re taking their ball home.

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  15. The wealthy traders are losing at the “scam” game they created. Thus the “panic”. Watch how fast Congress responds.

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  18. When you guys at Wall Street doing it, you said it’s all okay. When normal people doing it you accused it as pump and dump. Wolf Of Wall Street has taken a new meaning.

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