قالب وردپرس درنا توس
Home / Business / When the Meme stock frenzy hit, Wall Street saw the “big abacus”

When the Meme stock frenzy hit, Wall Street saw the “big abacus”



Reddit CEO says WallStreetBets is “at a loss” about its policies

Photographer: Tiffany Hagler-Geard/Bloomberg

Reddit crowds trading during the day turned the first quarter of 2021

into one of the craziest stock market frenzy in modern history. There is no doubt that in the next few years, books (plural) will be devoted to this topic.

But after these small-scale speculators united and pushed dozens of obscure stocks by hundreds or even thousands, percentage -In the process, some hedge fund bigwigs have bet on falling. -This movement seems to be gradually fading. After soaring nearly 150% in January, in the past 27 months, the index tracking the 37 most popular Meme stocks (37 of the 50 stocks that Robin Hood’s market banned customers from trading during the frenzy peak) have basically There is no change.

Talk to Wall Street veterans and they will tell you that this flat market will be the beginning of an irreversible decline in these stocks.

These have nothing to do with the company’s bad fundamentals. At least not in the short term. Day trading enthusiasts have shown an amazing ability to ignore these facts. Not only that, as the pandemic slowly recedes and the economy begins to open up, many people will leave their homes, start returning to their offices, then to restaurants, and then begin to travel long distances. And, as they did, they might stop obsessing with Robinhood accounts.

In other words, their collective control in the world of memetic stocks will weaken.

“People will do other things,” said Matt Maley, chief market strategist at Miller Tabak + Co. He said. “There is no doubt in my mind.”

In the past two months, a basket of popular Meme stocks has remained flat.

Of course, broadly speaking, the background of Wall Street has misunderstood the Reddit crowd at the beginning of this quarter, and now their analysis is likely to be wrong again. Preliminary data shows that they are correct.

Recent reports indicate that vaccinated Americans are planning the long-awaited vacation, search for “According to the Google Trend Tracker, “Google Flight” reached the highest popularity score of 100 this week. Such as “Stock trading” and “Google Trends shows that “investment” has plummeted.

Edward Moya, senior market analyst at Oanda, said: “The impact of stimulus measures on retail trade is waning.” “Many Americans hope to participate in sports events, travel across the country, vacation, visit family and friends, and Do great things in redecorating the wardrobe before going to restaurants, bars and returning to the office.”

Read more: Americans signal that they will stimulate travel instead of GameStop

Gamestop dominates

Video game retailer GameStop Corp. has become a typical representative of retail traders hoping to anger the elite of hedge funds.However, the stock 2,460% of roller coasters and other favorites touted on Reddit’s WallStreetBets thread cause as much pain as joy.

The stock has soared by more than 900% this year, arousing the vigilance of subsequent Wall Street analysts. The 12-month average target price means that the stock’s market value will lose more than three-quarters of its current level. Only Jefferies set a price target near Thursday’s closing price of $191.45 and issued a warning that the stock price “may exceed fundamental fluctuations.”

Analysts warned that GameStop's stock will collapse next year.

However, since it first attracted Wall Street and Reddit users in the second half of January, any feeling about GameStop’s fundamental trading has been ignored. The Bulls are happy to sell their bets on the forum as an option for short sellers because they bought shares in the company delivered by activist investor Ryan Cohen.

Read more: GameStop adds another Amazon executive to the team

given AMC Entertainment Holdings Inc. used to be a movie theater in the eyes of many Americans, but it is not surprising why Reddit users rushed to the company’s assistants. The popular #SaveAMC and amateur investors on Twitter seem to be happy to fight Wall Street’s skeptics, even though most movie theaters are closed due to the ongoing pandemic.

Despite recent troubles, AMC stock has attracted retail investors.

Source link