>>120733631>>120733650You guys are reasonably close. There's a couple of things you're missing.. The HEDGE FUND did absolutely insane risk plays, like shorting a stock, borrowing it from the people they shorted it from, and immediately shorting it again.
As a result, they had shorted 140 percent of all the available shares, and the price was way, way below what their current revenue and financial status would suggest. If anything the SEC should have stepped in last summer with this shit going on.
That's a completely batshit position to be in. And they did this in the middle of a new console launch season and Cyberpunk release. They were shorting more when gamestop was 5 dollars a share, trying to get it to 3. At this point the price of the stock was completely disconnected to the value of the company already.
Keep in mind that the maximum theoretical loss on ANY short position is infinite.
Having the stock price artificially depressed absolutely hurts g-s. It reduces their ability to get executive staff. Makes it harder to get good lease terms ect,
Having the stock price artificially high doesn't help g-s too much. They COULD raise money more easily, refinance debt, like what AMC did last week. For day to day operations, it's like a good credit score. Only useful for big purchases.
In the short term, this is good for G-S, because the hedge fund wanted to force GS into bankruptcy, immediately, and fire everyone. In the long term, they STILL need to figure out what their business should be.
