Team Reddit is using collusion to manipulate stock prices. I'm ok with this because having large hedge funds short a stock is a way to manipulate stock prices so same same.
Short selling doesn't hurt companies because the loaned stock comes from a broker or in some cases private traders and stock price doesn't have much effect on the bottom line of a company. Individual employees might suffer due to their company issued options being worthless (That happened to me when I was hired at Intel. Those options aged off without benefitting me at all due to stagnant stock price). There could be an up side for the company if the price goes really low, in that they could re-acquire their stock and then sell it at a higher price to realize gains.
GME, AMC, NOK, and Blackberry are pretty much doomed due to disruptive technologies that have made, GME and AMC in particular, obsolete business models. Shorting these companies makes sense and is not predatory.
BTW I'm holding as much AMC and NOK that Robinhood would let me buy the day after the purchase freeze. I figure if there is a force artificially bolstering the stock I might as well gain from the play. I'm down a few bucks but the whole market dipped yesterday so I'm expecting a rally this Monday.
Short selling doesn't hurt companies because the loaned stock comes from a broker or in some cases private traders and stock price doesn't have much effect on the bottom line of a company. Individual employees might suffer due to their company issued options being worthless (That happened to me when I was hired at Intel. Those options aged off without benefitting me at all due to stagnant stock price). There could be an up side for the company if the price goes really low, in that they could re-acquire their stock and then sell it at a higher price to realize gains.
GME, AMC, NOK, and Blackberry are pretty much doomed due to disruptive technologies that have made, GME and AMC in particular, obsolete business models. Shorting these companies makes sense and is not predatory.
BTW I'm holding as much AMC and NOK that Robinhood would let me buy the day after the purchase freeze. I figure if there is a force artificially bolstering the stock I might as well gain from the play. I'm down a few bucks but the whole market dipped yesterday so I'm expecting a rally this Monday.
