Last week, GameStop stock (ticker: $GME) rose 179% before finishing the week up 27%. Normally I would explain what the company did to drive this crazy performance. Maybe they just announced a powerful new AI model, or perhaps they just got acquired by a private equity firm. The real reason though might be a little more interesting: this post on X.
You might be thinking āhow could a picture of a guy in a chair make GameStopās market value increase by $1B+ in one week??ā Well itās not so much the picture of the guy as it is the guy who posted it. That guy is Keith Gill AKA āTheRoaringKitty,ā on X and āDeepFuckingValueā on Reddit, and heās attributed as the driving force behind the meme stock craze in 2021. In fact, Keith largely disappeared from the internet after turning $50K into $50M. So why is he back now?
At this point, your guess is as good as mine. Gill is currently posting cryptic memes and videos online hinting at some sort of āreturnā or ācomeback,ā but so far heās left his motive up for interpretation. In the meantime, investors have been quick to drive up the prices of so-called meme-stocks such as AMC, Blackberry, and GameStop to name a few.
Soā¦should you invest in GameStop..? No. Unless you are comfortable losing any and all money you put into the company. Their sales has only continued to decline by double digit percentages, the company is barely profitable, and at the time of this writing GameStop trades at an eye watering 1,011x P/E multiple. That makes NVIDIAās 78x P/E multiple look like a sweet deal.
šļø 5 Ways to Invest in Real Estate with Little Money
In this weekās blog post, I walk through 5 ways to invest in real estate without having to save hundreds of thousands of dollars first.
Investing in real estate is a fundamental tool for building wealth. And while there are many options like stocks and entrepreneurship, in my experience investing in real estate is one of the most straightforward and consistent methods of building long-term wealth.
If youāre unsure about real estate investing, let me ask you this: if you owned a single piece of property today, free and clear, would your life be better off? The answer is yes. And while I canāt hand you a fully paid off property today, I can give you 5 ways to get started today so that in the future you can reap the benefits of investing in and owning rental properties.
Stuff Iām Reading
š” How to Invest in Real Estate with Little Money (Brian Dean)
š GameStop Shares Retreat on Declining Revenue, Stock Sale (WSJ)
šµ The salary you need to be considered middle class in every U.S. state (CNBC)
šļø America is in the midst of an extraordinary startup boom (The Economist)
š„± 10 Boring Business Ideas (Twitter)
Responses