Dave Portnoy removed his diamond hands and sold off all his meme stocks.
The head of Barstool Sports, who has been a heroic figure with his fund that supports small businesses that have been decimated by the government, announced on Twitter that he is out.
Here is the tweet:
I have officially sold all my meme stocks. I lost 700k ish. Vlad and company stole it from me and should be in jail. pic.twitter.com/qXP1N1UFil
— Dave Portnoy (@stoolpresidente) February 2, 2021
He can take the $700,000 hit. It’s the rest of the armchair investors who probably used their life savings to buy GameStop shares and other meme stocks suffering.
One of the best takes of this GameStonks saga has come from Robert Wenzel, the editor and publisher of Economic Policy Journal:
Further, the idea that the WallStreetBets crowd is going to make money via their “revolution” is absurd. The picture above is the masthead of the WallStreetBets forum. Is the WallStreetBets short squeeze going to result in a surge in demand for yachts? LOL.
The problem with the type of squeeze WSB ran is that once the shorts are covered, there will be no one around to buy the stock. Based on fundamentals the stock is probably worth around $5.00, or less, per share.
Even now, when the revolutionaries are still in the hills and in their basements plotting, they are taking on huge losses.
It is still early in the game but at this point anyone who bought stock at any price above the black line in the chart below is losing money “as part of the revolution” and the downside is just getting started.
Read more: To the moon? GameStop slides below $90 as Reddit-fueled rally fades.
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