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Real Vision: Finance & Investing

Reflation Misgivings and The GameStop Gamma Squeeze ( w/ Ed Harrison & Jack Farlay )

Real Vision: Finance & Investing

Real Vision

Investing, Business News, News, Business

4.11.1K Ratings

🗓️ 25 January 2021

⏱️ 43 minutes

🧾️ Download transcript

Summary

DB-Jan25,2021: Real Vision managing editor Ed Harrison and editor Jack Farley break down the logic-defying price action in highly speculative stocks like Blackberry, AMC Entertainment Holdings, and, most notably, GameStop Corp, which surged over 160% to $159 before plummeting yet still being up on the day. Ed and Jack break down the “short squeezes” and “gamma squeezes” that are inflating those names, particularly GameStop, with Ed interpreting his Real Vision Live with Jim Bianco today and Jack sourcing info from volatility trader Kris Sidial. Lastly, Ed shares his thinking on how the different COVID-19 variants will impact re-opening as well as the reflation trade, which he thinks may have overstepped its bounds. In the intro, Real Vision’s Haley Draznin describes what happened with GameStop’s volatile trading today. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0

At M&M we sell big brands at low prices.

0:03.6

Our clothes and footwear are always up to 65% less.

0:07.5

And so are our radio ads.

0:09.7

So here's some Calypso music to fill the time. M&M, big brands, low prices, always up to 65% less than RRP. The

0:46.5

Welcome to the Daily Briefing. It's Monday, January 25th. I'm going to be joined shortly by our managing editor Ed Harrison, but first with the day's

0:50.6

stories, Haley Drasnan. Equities were mixed on Monday with the NASDAQ outperforming amidst some concerns that additional

0:58.4

stimulus would be delayed.

1:00.4

We've seen this pattern before that his worries grow about the length of the pandemic.

1:05.0

The NASDAQ and those stay-at-home tech stocks tend to outperform.

1:09.0

GameStop, though, the video game retailer is really making me scratch my head today. The stock

1:14.7

surge nearly 145% to a record intrad day high of around a hundred and fifty nine

1:20.6

dollars per share. This was before circuit breakers halted trading several times due to volatility.

1:27.0

When trading resumed, share prices fell to around $80. The story begins with the fundamentals surrounding Game Stop, one of the last vestiges of this

1:37.3

bygone era of brick and mortar retailers. Sophisticated investors have taken short positions on GameStop as the brick and mortar

1:46.2

approach to selling video games is rapidly getting displaced by digital e-commerce, especially during a pandemic when these non-essential

1:54.9

retail stores like GameStop are forced to close. As such, GameStop is on

2:00.3

the verge of bankruptcy, but enter

2:02.5

Reddit's Wall Street Betts Forum,

2:04.5

subscribed by millions of these so-called Robin Hurters,

2:08.6

you know, these tech savvy millennials

2:10.9

who in this case find strength in numbers call it collusion or simply a white night

2:16.3

rush to save a dying video game retailer but it seems like the popular threads on Wall Street Betts lately have been to encourage getting

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