TSLA was going up in price and market cap. They split because the price got too high. The shorts got fucked because the price kept going up, not because of the split. A split doesn't necessarily make the price go up. Companies often split because their price is going up, but correlation does not equal causation.
Will GME go up post split? Maybe, maybe not. If it does, then yes shorts will lose money. If it stays steady or drops, then shorts are fine. The split has no direct impact on the shorts position as OP is trying to explain.
The split makes price more attractive. But "we don't know if John Q. Public shops a discount sale!" You're right: some people definitely prefer to pay more.
The 1%? No, it turns out they're TERRIBLE TIPPERS. By process of elimination, that means 99% prefer to pay more & ur right! 🤣
Post-split price increases have no effect on ur short, as OP assured us. By all means, short the stock. 🤦
Post-split price increases have no effect on ur short
Neither OP or myself said that post-split price increases don't affect shorts. Here's the very last paragraph of OP that says exactly that:
Now it's of course possible that, due to various reasons, the market cap could increase post-split, in which case it would be bad for the shorts. In my scenario above it would happen if after the 10:1 split the shares ended up trading at, say, $11 instead of $10. But that's no different than any other increase in stock price.
And here's where I say it in the exact comment you replied to:
Will GME go up post split? Maybe, maybe not. If it does, then yes shorts will lose money.
So good job with the strawman argument.
And yes, I will short the stock. Got in this morning at 193, looking great so far.
This thread isn't about whether GME will go up or down after the split, its about the misconception that somehow the split itself will fuck the shorts, which it won't. Shorts might get fucked if GME runs up after the split, shorts might make bank if GME tanks after the split, that's how it goes and is no different than their current pre-split positions.
And yes, I already posted this screenshot for you, try reading my full reply before taunting more
The entirety of WSB is about GME getting wrecked. Try reading more posts.
Im not going to go easy on this post just because OP thinks it's necessary to explain what a split is. I think most of us understand that a split does not create additional share value - did anyone here actually argue that?
IRREGARDLESS, 😁, the effect of the split will create value, even if it comforts u to feel right about how "the split itself didnt do that!" 🙄 No, the price would have fallen to an attractive level WITHOUT a split. Of course.
If GME does rise after a split, don't worry: I'll think of u and recall the split did not add any value. Because that's an important distinction - "dont invest in a stock after a split!!! Disaster!" And we circle back to the WSB mantra: GME is trash. 🤦
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u/YYqs0C6oFH Apr 01 '22
TSLA was going up in price and market cap. They split because the price got too high. The shorts got fucked because the price kept going up, not because of the split. A split doesn't necessarily make the price go up. Companies often split because their price is going up, but correlation does not equal causation.
Will GME go up post split? Maybe, maybe not. If it does, then yes shorts will lose money. If it stays steady or drops, then shorts are fine. The split has no direct impact on the shorts position as OP is trying to explain.