HAVE
HAVE YOUR
HAVE YOUR FORECAST IN JUST A MOMENT OR TWO. CORRECT BACK TO YOU
>>. OK, YOU'VE PROBABLY
>> SEEN PEOPLE ON SOCIAL MEDIA
OR HEARD SOMEONE IN YOUR LIFE
TALKING ABOUT GAMESTOP AND ITS
STOCKS. IF YOU HAVE NO IDEA
WHAT THEY'RE TALKING ABOUT,
DON'T WORRY. YOU'RE NOT ALONE.
HERE'S AN ABRIDGED VERSION
OF WHAT'S HAPPENING. OK
>>, GAMES USED TO BE VERY
POPULAR WITH VIDEO GAMERS BUT
IT HAS BEEN HIT HARD BY CHANGES
IN BUSINESS AND OF COURSE THE
PANDEMIC. SO FOR THE LAST
>> YEAR ITS STOCK WAS SELLING
AT LESS THAN TWENTY DOLLARS A
SHARE BIG WALL STREET INVESTORS
SAW AN OPPORTUNITY AND STARTED
SHORTING THE STOCK OR BETTING
THE PRICE WOULD DROP. IF IT DID
THEY'D MAKE MONEY
>> BUT IF IT WENT UP THEY'D
TAKE A LOSS. WELL THAT MADE
SMALL INVESTORS ANGRY SO THEY
USE SOCIAL MEDIA TO ENCOURAGE
OTHERS TO BUY DRIVING UP THE
STOCK PRICE DRAMATICALLY
CREATING MASSIVE LOSSES FOR
THOSE BIG WALL STREET INVESTORS
AND IT WORKED YESTERDAY GAME
STOPS STOCK CLOSED AT ALMOST
THREE HUNDRED FIFTY DOLLARS
>> A SHARE. EARLIER TODAY I
CAUGHT UP WITH DR ANDY TERRY,
PROFESSOR FINANCE AT A LITTLE
ROCK TO LEARN MORE ABOUT THE
IMPACT OF WHAT WE
>> SAW THERE.
>> HOW DOES THIS IMPACT THOSE
OF US IN ARKANSAS WHO DO OUR
REGULAR JOB GO THROUGH OUR DAY
?IS THIS DOES A SIDE SHOW?
IT'S JUST LIKE A CIRCUS ACT.
IT'S GOING ON IN THE BACKGROUND
OR DOES IT ACTUALLY IMPACT US
FINANCIALLY? IT I THINK THAT IT
HAS NEXT TO NO IMPACT ON ANY
OF US FRANKLY. I MEAN UNLESS WE
HAPPEN TO HAVE BEEN AN INVESTOR
BUYING OR SHORTING IT. YEAH. I
MEAN IT'S IT'S A GAME I MEAN NO
PUN INTENDED IT'S A GAMESTOP.
YEAH
>>. SORT OF AN APTLY NAMED
>> COMPANY IS ZYGOWICZ. WHAT
DOES THIS MEAN TO THE MARKET?
IS THIS GOING TO MAKE THE
MARKET NERVOUS GOING FORWARD
>> SO THE MARKET IS SO MUCH
BIGGER THAN THAN THIS LITTLE
OF THIS WAS LITTLE COMPANY
GAMESTOP HAVING SAID THAT AGAIN
IF YOU READ THE WALL STREET AND
SOME OF THESE OTHER
PUBLICATIONS, APPARENTLY THIS
HAS SPILLED OVER INTO TWO OR
THREE OTHER COMPANIES AND THEY
MENTIONED BEST BUY. THEY
MENTIONED I CAN'T REMEMBER
PALANTIR WAS TECHNOLOGIES WAS
ONE. THERE'S ANOTHER ONE BUT
THERE HAS A LITTLE BIT
OF SPILLOVER. BUT AGAIN,
RELATIVE TO THE THE VOLUME IN
MARKET CAP OF THE HOME MARKET,
YOU KNOW THIS THIS REALLY IS A
SIDESHOW REALLY. IT'S AN
INTERESTING SIDESHOW ALTHOUGH
IT'S HARD TO I MEAN A LOT
OF PEOPLE THINK THIS IS A
CLASSIC BUBBLE THAT YOU READ
ABOUT IN FINANCE LITERATURE,
YOU KNOW, AND PARTICULARLY
MOLECULE'S BOOK A RANDOM WALK
DOWN WALL STREET WHERE HE
DESCRIBES ALL THE DIFFERENT
BUBBLES THAT HAVE OCCURRED FROM
TIME. THIS APPEARS TO BE A
CLASSIC BUBBLE BECAUSE IT'S
HARD IT'S HARD TO FATHOM THAT
THE COMPANY REALLY COULD
GENERATE ENOUGH PROFIT IN THE
FUTURE TO JUSTIFY THE PRICE.
WHAT'S
>> THE LESSON HERE? WHAT CAN WE
TAKE AWAY FROM WHAT WE'VE SEEN
THE LAST COUPLE OF DAYS WITH
THIS HIGH VOLATILITY? IT'S
ALMOST REVENGE MARKET
>> SO THE LESSON FOR THE I MEAN
YOU OR I SHOULDN'T I MEAN WE
MIGHT HAVE SOME PLAY MONEY IF
WE HAVE TO GAME AROUND WITH NO
PUN INTENDED. BUT IF WE HAD
PLAY MONEY THAT'S ONE THING
THAT FRANKLY WE SHOULDN'T BE WE
SHOULDN'T BE PAYING ATTENTION
TO THESE THINGS BECAUSE WHAT'S
GOING TO HAPPEN IS WE'RE GOING
TO WATCH ALL OUR FRIENDS GET
INTO IT AND THEY BOUGHT IT AT
TWENTY AND THAT'S TWO HUNDRED
OR THEY BOUGHT IT AT WHATEVER
AND IT THE WORST THING IS TO
HAVE WHAT YOU'RE YOU BRAGGING
THE STOCK AND THEN YOU LOOK AT
IT WELL MAYBE I'LL BUY IT AND
THEN YOU TAKE OUT A BET THAT IF
THE MUSIC MUSIC STOPS IT'S
GOING TO BE PROBABLY YOU OR I
GOT INTO LATE BECAUSE MY SON
ALREADY KNEW ABOUT IT A MONTH
AGO AND ABOUT WHAT I'M JUST
SAYING HE BORROWED IT FOR LET'S
SAY AND SOLD IT TWO HUNDRED AND
I THINK I'M COOL ABOUT IT TWO
HUNDRED AND THEN IT GOES BACK
TO REALITY SO
>> THE AVERAGE INVESTOR WE
SHOULDN'T TOUCH THIS I MEAN
FRANKLY
>> AND YOU CAN LEARN MORE ABOUT
THE GAME STOP