booknovelhub
Chapter 314: 137, Lin Mo shocks the New York Stock Exchange! The greatest trader!_5
Chapter 314: 137, Lin Mo shocks the New York Stock Exchange! The greatest trader!_5
Chapter 314: 137, Lin Mo shocks the New York Stock Exchange! The greatest trader!_5
She clicked into the live-streaming room and discovered that there were actually more than 30,000 people online, and everyone was buying GameStop stock in various ways.
Li Jinwen quickly showed the phone to Lin Mo and translated what the host was saying, as well as some of the bullet comments.
After watching the host for a while, Li Jinwen also found that many news media outlets were reporting on GameStop’s news.
[I’ve been in the industry for 30 years, and I’ve never seen anything this crazy. I suspect this is the first time in the history of US stocks that there’s been such a massive short squeeze!]
[Individual investors making a fortune, Wall Street elites panicking?]
[Who started this war, and where did the mysterious $20 million in funding come from?]
[GameStop stock price rebounds to $10!]
[GameStop stock price rebounds to $11!]
[It’s rising again!]
[This completely defies stock market common sense; the main driving force for buying is coming from individual investors.]
[Host Gil, a broadcaster creating a miracle for individual investors!]
The most important thing in the financial industry is the various sources of intelligence, and thus Wall Street’s news updates have always been very fast. This short squeeze event is unprecedented, so the major news media are even more eager to report on it.
In fact,
there are many people who want to interview Lin Mo, waiting anxiously outside the VIP room door, looking for a way to meet him.
Unfortunately, the New York Stock Exchange places a high value on customer information security, and without Lin Mo’s approval, no reporter could possibly enter the VIP room to see Lin Mo.
…
Meanwhile.
New York, Wall Street.
Melvin Capital headquarters.
“Oh… shit!”
Levan Tony, looking at the continuously rising stock price and the increasingly frenzied media, finally realized that something was amiss.
Indeed, the $20 million was just to start the war; the subsequent whirlpool strategy would be the ultimate trump card for the ownership of GameStop stock.
Who could it be?
Exactly which consortium was opposing them, or was GameStop orchestrating its own show?
Levan Tony couldn’t make up his mind and could only re-enter the CEO’s office to report the current situation to the president in its entirety.
“What’s the panic about?” Carl Icahn, even faced with this situation, showed no change in expression and said coldly, “Individual investors are but fools, a disorganized mob; what’s there to worry about?”
“Continue to release stocks until they panic.”
Their short selling process involves borrowing a batch of stocks from brokers or securities institutions, then selling them off to destabilize the market’s confidence until the stock price drops.
Once it drops to a certain level, they buy back the stock at a low price and return it to the lender with interest.
So, if individual investors buy in large enough quantities, a short squeeze will occur, and no matter how high the stock price is, they must redeem it,
Theoretically, there is no limit to such a rise, as long as there are enough buyers; it could even drain the entire stock market.
Levan Tony, worried, asked, “President, what if a real short squeeze happens? By then, our entire company might risk a massive loss….”
Carl Icahn furrowed his brow and said in a grave tone, “Impossible! Do as I say.”
“Y-Yes… I’ll enact it immediately.” Levan Tony dared not say anything more and turned to leave the president’s office.
…..
In the hour that followed, GameStop’s stock underwent a bungee-jumping-like situation.
Every time individual investors drove the price up, the shorting institutions would release more stocks to dilute their price.
After holding on for nearly an hour, it was the individual investors who couldn’t withstand first.
Especially those who were already indecisive began to sell off their stocks one after another.
The faster the stock fell, the quicker they sold.
If nothing unexpected happened, GameStop’s stock would drop below $10 again.
And once it dropped, there was no possibility of it rising again.
All individual investors would lose at least half, while short-sellers stood to make a hefty profit.
But the world is so wonderful.
Just when everyone thought the game was nearly over, Elon Musk happened upon the GameStop news and posted three related tweets on his own social media platform, and in one he wrote, [Gamestonk!!]
….
VIP room.
Li Jinwen, who had experienced several emotional roller coasters in a short time, also saw this tweet and excitedly exclaimed, “Husband, even Musk has tweeted, and it’s about GameStop too.”
Oh?
Lin Mo glanced at the phone screen, which was all in English letters, not understanding what it meant.
Pointing at Musk’s tweet, he asked, “Wife, what does this mean?”
“Gamestonk!!” Li Jinwen repeated, thought for a moment and said, “You could understand it like this, ‘Stir things up,’ but it is not so civilized.”
Lin Mo laughed.
The stance of celebrities can greatly influence the rise and fall of a stock.
Once, a young man spent a fortune to dine with Buffett, and many people on the internet called him crazy, questioning the usefulness of paying millions to have a meal with an old man.
However, during the meal, the young man repeatedly asked Buffett several questions about a particular stock, to which Buffett gave ambiguous answers.
Even though the answers were ambiguous, those stocks still experienced a surge thanks to the flow of internet traffic from the event.
The turnaround happened at this moment,