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Is gamestop proof that the stock market makes zero sense?

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What's the point of even buying stocks if the fundamentals don't reflect the price in real-time instantly? For example we all know GameStop is a piece of crap and should go out of business already. But we have a bunch of morons playing a game of Casino, pumping up the price, what's the point of even buying stocks if a bunch of people can get together and artificially inflate the price? not reflecting its true value whatsoever.

 Technically speaking, they could continue to do this forever, nothing is really stopping them. And, that means the stock market is only backed by people blindly buying and keeping the price afloat rather than buying based on fundamentals. 

Basically, I could open up a shoe shining stand on the sidewalk hypothetically speaking, maybe only have $1 in the bank but as long as people buy my stock just for the fun of it, it will continuously go up. This doesn't make any sense whatsoever.  

Update:

In other words the only thing gamestop has done is prove that fundamentals don't mean anything.

3 Answers

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  • 1 month ago

    GME is just one example of the reality that the market isn't always rational. That's a good thing when there are well run, under the radar or underappreciated companies that not every moron out there knows about. Let them go buy their overvalued junk. 

  • Anonymous
    1 month ago

    I would not have retired young without investment gains.

    gamestop type speculation is a very small part. And its for idiots.

  • 1 month ago

    It's never made sense.  Supply and demand is the name of the game, nobody else can tell me when to demand something, if I have money I'm free to buy whatever I want.  Keith Gill told the committee last week that he would buy Gamestop here, "here" then was around $50 and he explained that he liked the company and believed it was undervalued adding that that's why he bought it in the first place.  Well, someone else would disagree with that assessment but that doesn't mean Mr Gill is wrong.  Fundamental analysis is comprised of a quantative review but also a qualitative review, the latter is subjective.

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