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Motley Fool Hidden Gems Investing

As GameStop Turns

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.33.1K Ratings

🗓️ 29 January 2021

⏱️ 39 minutes

🧾️ Download transcript

Summary

Investors react to the escalating drama with Redditt, speculators, and GameStop. Johnson & Johnson reports Phase 3 trial results from its one-shot vaccine. Apple reports record-breaking revenue. Microsoft hits a new high on earnings. Facebook slides. Atlassian rises. Starbucks surprises. And Tesla dips. Motley Fool analysts Andy Cross and Ron Gross discuss those stories and weigh in on the latest from Mastercard, Visa, and General Motors. Ron and Andy share two stocks on their radar: NextEra Energy and Unity Software. Plus, Ad Age’s Jeanine Poggi previews the advertising for Super Bowl LV. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Everybody needs money. That's why they call it money.

0:07.0

From full global headquarters, this is Motley Fool Money. It's the Motley Fool Money

0:20.1

radio show. I'm Chris Hill joining me this week's Senior Endless Andy Cross and Ron

0:24.4

Gross. Good to see you. It was always gentleman. Hey Chris.

0:26.6

You doing Chris. We've got the latest earnings from Wall Street. We've got the latest

0:30.2

vaccine news from Johnson and Johnson and as always we've got a couple of stocks on our

0:35.0

radar. But we begin with America's hottest news soap opera as GameStop turns. This week

0:43.6

an escalating drama on Wall Street became front page news across America and around the

0:49.5

world. GameStop is by most measures a challenged bricks and mortar retailer that sells video

0:56.5

games. Because of that it is one of the most heavily shorted stocks in the market. But

1:01.7

retail investors led by a Reddit community called Wall Street Betts has been steadily

1:07.6

buying shares of GameStop, pushing up the price and forcing short sellers to run for

1:13.4

the exits. This week shares of GameStop are up more than 400 percent year to date so

1:20.0

far. Shares up nearly 2000 percent. Ron, I'll start with you. There are so many angles

1:27.7

to this story. We have hedge funds on one side. We have retail investors on the other.

1:32.7

We have Robin Hood somewhere in the middle. As an experienced investor, what do you think

1:39.1

as you watch all of this play out? Oh boy. This is this is different. A few thoughts

1:44.8

here. So I love the sharing of information and how social media has changed that

1:49.8

game. No problem with that. I love that individual investors, especially young individual investors,

1:56.1

are becoming more interested in the stock market. Wonderful. I don't think all hedge funds

2:00.6

are the devil. I think shorting does provide some benefits such as liquidity and the ability

2:05.6

to hedge your portfolio. But importantly, I don't think what the Wall Street Betts folks

...

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