Is Superstonk right or wrong about MOASS?

Question

r/Superstonk is a subreddit dedicated to Gamestop stock. According to them at some point in the future the so called MOASS (mother of all short squeezes) will take place and shoot GME&rsquo;s price into the millions. The justification for why and how this could happen is where fact-checking becomes difficult for me and the whole place begins to look like an echo chamber.Are they right or are they just a cult (both could be true I suppose)? How do you go about verifying whether their reasoning is solid? It would be great to hear from people who know more about finance and from the wider HN community.

WheelsAtLarge · Accepted Answer

Keep in mind that it's in the advantage of every owner to hold the stock and not sell. That is the basis of all squeezes. So it makes sense that there are people that are coming up with all kinds of stories to keep people from selling no matter the reality that the company is having a hard time due to it's old business model. I think that just the thought that there could be a massive short squeeze will likely negate the possibility of a squeeze. No one will ever take a large short position if there's a chance that the stock can explode up. I'm sure there are many buyers that are holding on for the squeeze but at some point they will tire and sell. If you're interested in the stock buy a few share and hold them and see what happens. But it's a bet, it's not an investment.

missedthecue · Answer

If GME went to $1 million, it would make it a $74.5 trillion company, close to the size of the global economy.No, it's not possible.