It’s mind boggling people don’t understand this. Profit taking is what happens when the stock price drops. We’ve yet to see that happen... but my guess is that the institutional whales will tip the scales as soon as they decide they’ve taken enough from the Reddit crowd.
There’s already a sell wall... so you know they’re gearing up.
As other commenters noted, there were a lot of shares sold that traded hands. But the important thing to look at is not shares, but how much money moved into the security, and who now holds it, and who will be in a position to keep it.
And these hedge funds that are supposedly feeling the pain. Most of them have got plenty of capital to manage this.
Think if it this way... how many billions of capital was invested by retail investors... and how many of those are “holding” in order to “stick it to the hedge funds.”
Those billions are going to go somewhere as the stock price drops.. and I’m going to guess that most of it won’t go back in the pockets of the retail investors when this all ends.
So they basically just made a bunch of rich people richer.
It’s unfortunate this has come to pass. What’s also unfortunate is how much less news and hype there is as the price comes down and retail investors have now lost a ton of money.
This is a learning moment that will unfortunately go unlearned by most.
Perhaps what we need most in this country is financial education at the high school level to prevent this kind of thing happening over and over rather than relying 100% on regulation. Regulation can only be reactive, and we need to be proactive.
There’s already a sell wall... so you know they’re gearing up.
As other commenters noted, there were a lot of shares sold that traded hands. But the important thing to look at is not shares, but how much money moved into the security, and who now holds it, and who will be in a position to keep it.
And these hedge funds that are supposedly feeling the pain. Most of them have got plenty of capital to manage this.
Think if it this way... how many billions of capital was invested by retail investors... and how many of those are “holding” in order to “stick it to the hedge funds.”
Those billions are going to go somewhere as the stock price drops.. and I’m going to guess that most of it won’t go back in the pockets of the retail investors when this all ends.
So they basically just made a bunch of rich people richer.
How can the hedge funds not being laughing?