GameStop and the Final Fantasy of Products
Jan 29, 2021 9:01 pm
So I think pretty much everyone knows something about the GameStop stock thing. I have to say it was an obsession all week of mine and how timely that I just read two books on investing just recently!
A quick explanation on what is happening. Big investment groups took short positions on a GameStop, and on Monday they have to pay back their shorts. If shorts are confusing, imagine me borrowing your car and selling it to someone that wants it today. I owe you a car, but I'm sure I can buy the same car for cheaper somewhere else. I get to keep the money I made on the first sale, and you get a car back. This scheme only works if I can get a cheaper car and sucks for me if I can't.
Well, Monday these companies find out that if they can get cheaper GameStop stock or they pay back more.
The frenzy is a result of people shorted GameStop to 140% of its stock. People on reddit saw that and knew what it meant. Then GameStop hired a new CEO and announced a new strategy. This was a perfect mixing of factors where people on reddit realized the stock would go up, and if they started buying they could accelerate and force a moment where the price would skyrocket. This is called a squeeze.
I don't have anywhere to go with this, but one thing I was paying attention to is all of this detail is interesting mechanics, and is missing one ingredient. How people will react with other forces.
I was sure that people would try to stop this from happening, but I wasn't sure how or when.
It turns out it is happening on multiple fronts. Trading platforms like RobinHood are stopping purchases and sales. Wall-Street halted trading numerous times.
This is a lot closer to the point. When people have something to lose they will act. The mechanics aren't enough. The same is true in every company.
Anyway, it will be interesting to see the repercussions of this, including if the other companies that have been identified in a similar position will experience a similar burst of activity.
I put a link below to a new youtube video of a resume review. I hope you enjoy it and if you know someone who would like me to do theirs, send them my way.
I also wrote an article about product management and what might happen if you add one feature too many.
I hope you're well, and I'll talk with you soon!
There was an interesting movie from when I was younger that I sometimes think of when I work with people on product management concepts.
Many of us know the 80/20 rule about effort and whatnot, but what about in terms of adoption?
Can you add one feature too much that hurts adoption?
I think you can.
If you want your software career questions answered or your resume reviewed, visit my site and sign up for my newsletter:
In this episode, I'm reviewing the resume of a student seeking an internship.Some of the key points here are:
- The format is super clean and easy to read! 👏👏👏
- It is forced into one page
- My order of sections would go: Skills, Experiences, Honors, Projects, Education
- You have more skills and knowledge than what you listed, use the job description for inspiration
- Drop your proficiency rating, unless you want to be tested really hard
- Projects are off to a good start....