Comment Re:Death knell for Gamestock (Score 4, Interesting) 118
In a way, the reddit gang is actually saving GameStop.
For all the faults GameStop is, being massively unprofitable or deeply in doubt is not one of them. There is no reason for its stock price to be as low as $3 . The only reason why the price is so low, is the short seller short-selling _!40%_ of the existing float.
In another words, the short sellers are trying to kill GameStop the company, both by destroying others' confidence in the company, and by denying GameStop access to capitals (to re-vitalize). Eventually GameStop will enter an unescapable death spiral and close up shop, laying off all its workers.
By pushing up the price and getting rid of the short sellers, the reddit gang allows GameStop to (eventually) find its true valuation and re-capitalize the company. This should be a good thing for the market, and for the society.