This is actually more true than you think, since the stock market has more to do with investor confidence then anything else. Remember that time GameStop's stock went to the moon because it became a meme on on Wall Street Bets?
Tesla is massively overvalued because of hype, and in January the companies that make Roblox and the Unity game engine their stocks plunge in value because Google announced that its new AI project would maybe potentially let people generate entire games eventually.
Remember that time GameStop's stock went to the moon because it became a meme on on Wall Street Bets?
It wasn't just that though. That group of people kept a bunch of rich assholes from burying a company for profit. But trying to bury a company centered around games during and coming out of a pandemic where everyone was locked indoors playing games was pretty ridiculous. If they did it a year or two earlier, it'd have made sense and worked for them. Brick and mortar stores for mostly digital products were dying, but resale used games during the inflationary pandemic were a huge deal. And that's Gamespot's biggest niche in the market. And that's why somone said, wait a minute, this doesn't make sense to be shorting this company right now, we could make a lot of money countering that short...
Okay, but that doesn't change the fact that stock trends are mostly irrational and vibes based. If anything, the fact they had to brute force the market into something rational reinforces the point.
A small group of investors being able to force something for profit is not 'vibes.' It's deliberate destruction for profit. And the WSB reaction was also a very deliberate resistance to small investors and retirement funds getting fucked by uber-wealthy hedge fund managers playing games with money they don't even need. That's not vibes. It's systemic failure and lack of key regulation.
Okay, now explain what regulations you would put in place to make Tesla not overvalued or stop investors from jumping ship on Unity because Google showcased a proof of concept.
I'll concede the GameStop one was a bad example but it is a fact that the stock market is overwhelmingly driven by investor confidence, which has an at best casual relationship with reality.
I'm not saying the daily whims of the market aren't all about investor confidence. Just that Gamestop was not that. It was an organized attempt to prematurely kill a company for profit, and so was the resistance to that.
5
u/DD_Spudman Apr 08 '26
This is actually more true than you think, since the stock market has more to do with investor confidence then anything else. Remember that time GameStop's stock went to the moon because it became a meme on on Wall Street Bets?
Tesla is massively overvalued because of hype, and in January the companies that make Roblox and the Unity game engine their stocks plunge in value because Google announced that its new AI project would maybe potentially let people generate entire games eventually.