Billionaire investor Mike Novogratz compares crypto zealots to anti-vaxxers – and says GameStop fans show the same conviction

GettyImages 1281542990
Mike Novogratz.

  • Mike Novogratz compared crypto zealots to anti-vaxxers, in terms of their stubborn beliefs.
  • The Galaxy Digital boss said GameStop’s fans show a similar level of passion and commitment.
  • Novogratz disclosed that he shorts viral assets when they explode in popularity.
  • See more stories on Insider’s business page.

Bitcoin bull Mike Novogratz compared some cryptocurrency fans to anti-vaxxers in terms of their conviction, and noted GameStop’s followers display the same kind of blind devotion.

The billionaire investor and Galaxy Digital CEO spoke at the Barclays Financial Services Conference this week. He remarked that if he questioned cardano’s roughly $80 billion market capitalization on Twitter, he would be inundated with thousands of attacks by the coin’s supporters.

“It’s like telling a Manchester United fan that Man U sucks, or going to an Eagles game with the Giants’ jersey on,” Novogratz said, according to a transcript on Sentieo, a financial-research site.

“These ecosystems are unbelievably rabid,” he continued. “They’re passionate. It’s like an anti-vaxxer – you can’t tell an anti-vaxxer they’re wrong, right? They have personalized this stuff.”

Viral assets such as cardano, dogecoin, or GameStop and AMC shares don’t make sense to rational investors given their limited functions or heady valuations, Novogratz said. Yet online communities have sprung up around them, and diehard members have made owning and touting those assets a key part of their identities, he continued.

“GameStop is a crypto at this point, there’s no link to its profitability,” Novogratz said.

The Galaxy Digital boss revealed that he seeks to profit from the breathless, but often short-lived, excitement around meme stocks and altcoins.

“I love shorting, because that’s how I get longer the stuff I like,” he said. “The moment that community gets really big, you’re going to short it.”

However, Novogratz noted that he cashes out his profits once there’s a sell-off, as the support bases for viral assets have proven to be far more resilient than he expected.

Novogratz also trumpeted the crypto industry’s prospects at the conference. The sector is only now taking off, he said, and failing to invest in the space would be like missing the internet in the early 2000s.

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Bitcoin bull Mike Novogratz compares crypto zealots to anti-vaxxers – and says GameStop fans show the same conviction

GettyImages 1281542990
Mike Novogratz.

  • Mike Novogratz compared crypto zealots to anti-vaxxers, in terms of their stubborn beliefs.
  • The Galaxy Digital boss said GameStop’s fans show a similar level of passion and commitment.
  • Novogratz disclosed that he shorts viral assets when they explode in popularity.
  • See more stories on Insider’s business page.

Bitcoin bull Mike Novogratz compared some cryptocurrency fans to anti-vaxxers in terms of their conviction, and noted GameStop’s followers display the same kind of blind devotion.

The billionaire investor and Galaxy Digital CEO spoke at the Barclays Financial Services Conference this week. He remarked that if he questioned cardano’s roughly $80 billion market capitalization on Twitter, he would be inundated with thousands of attacks by the coin’s supporters.

“It’s like telling a Manchester United fan that Man U sucks, or going to an Eagles game with the Giants’ jersey on,” Novogratz said, according to a transcript on Sentieo, a financial-research site.

“These ecosystems are unbelievably rabid,” he continued. “They’re passionate. It’s like an anti-vaxxer – you can’t tell an anti-vaxxer they’re wrong, right? They have personalized this stuff.”

Viral assets such as cardano, dogecoin, or GameStop and AMC shares don’t make sense to rational investors given their limited functions or heady valuations, Novogratz said. Yet online communities have sprung up around them, and diehard members have made owning and touting those assets a key part of their identities, he continued.

“GameStop is a crypto at this point, there’s no link to its profitability,” Novogratz said.

The Galaxy Digital boss revealed that he seeks to profit from the breathless, but often short-lived, excitement around meme stocks and altcoins.

“I love shorting, because that’s how I get longer the stuff I like,” he said. “The moment that community gets really big, you’re going to short it.”

However, Novogratz noted that he cashes out his profits once there’s a sell-off, as the support bases for viral assets have proven to be far more resilient than he expected.

Novogratz also trumpeted the crypto industry’s prospects at the conference. The sector is only now taking off, he said, and failing to invest in the space would be like missing the internet in the early 2000s.

Read the original article on Business Insider

GameStop’s soaring market value has it big enough to enter the S&P 500 – but the company faces still faces other hurdles before it can be included

Gamestop.
Gamestop.

  • While some stock indices follow systematic criteria, which names get included in the S&P 500 is set by a committee of anonymous staffers at S&P Dow Jones Indices.
  • GameStop, which was S&P 500-listed as recently as 2016, now once again meets a number of S&P’s rules.
  • But GameStop’s biggest hurdle to index inclusion could be its lack of profitability.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

GameStop‘s stunning run up in 2021 has given the company a market value that more than exceeds the threshold for S&P 500 inclusion. But it still faces significant hurdles, due largely to a handful of factors outlined in a new Wall Street Journal report.

While some stock indices follow systematic criteria, which stocks get included in the S&P 500 is set by a committee of anonymous staffers at S&P Dow Jones Indices. The committee leans on a number of rules but has ultimate discretion over the process.

GameStop, which was S&P 500-listed as recently as 2016, now once again meets a number of S&P’s rules. The stock’s market capitalization, currently around $16 billion, is well above the required floor of $13.1 billion. GameStop shares are also highly liquid and held largely by the public.

But GameStop’s biggest hurdle to index inclusion could be its lack of sustained profitability. S&P rules say listed companies must have positive earnings in both the most recent quarter and the past year. The game retailer, however, generated a loss in the first quarter of 2021 as well as three of four quarters in 2020.

In principle, the S&P committee could look past GameStop’s soft earnings for one reason or another – perhaps on account of its towering market value. But given the speed of GameStop’s rise, the committee could be nervous about approving its inclusion too soon, Art Hogan, chief market strategist at National Securities Corporation, told the Journal.

“While the company may check most of the boxes, it is hard to know how long that will be the case,” he said.

The S&P committee has also seemed to downplay raw market cap in certain cases. Several of the S&P 500’s smallest players have markets caps well below the supposed minimum, such as NOV Inc.‘s $5 billion market valuation.

“Entrance to the S&P 500 is a combination of both art and science,” Hogan told the Journal.

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How to find meme stocks like GameStop and AMC: Your complete guide to spotting and profiting from hot stocks on social media and Reddit’s Wall Street Bets

Stonks meme
Meme stocks have been arguably the biggest market trend of 2021.

  • Meme stocks like GameStop and AMC Entertainment have taken the investing world by storm in 2021.
  • Small-time retail traders have banded together in a rebellion against Wall Street hedge funds.
  • Insider regularly interviews experts who share how to spot meme stock surges.
  • Below is a compiled list of stories covering everything you need to know about meme stocks. You can read all about the trend by subscribing to Insider.

Stocks have steadily advanced in 2021 as the economy rebounded from the pandemic, but the S&P 500’s solid gains pale in comparison to those of previously left-for-dead companies like GameStop (GME) and AMC Entertainment (AMC).

Those long-suffering stocks shocked the world by spiking as much as 1,700% and 2,800%, respectively, and ushered in a new era of investing in what are now known as meme stocks.

Meme stocks have no precise definition, but they’re not hard to spot. Common characteristics of these select few stocks include sudden rallies and volatile price swings on unusually high trading volume.

The action is typically driven by members of online forums like Reddit and social media users, who sometimes make and share memes to promote and build momentum around the stock’s rally. But stocks that meet the above criteria can be considered meme stocks without having a big online following.

Below is a comprehensive breakdown of Insider’s coverage of the meme stock movement and how investors can profit from it.

Top meme stocks now

Retail investors are always searching for stocks to send “to the moon.” Below are some of the hottest names that social media users are buzzing about during the week of August 23.

Read more:

How to trade meme stocks

Trading meme stocks isn’t as simple as it sounds. It takes hours to surf through Reddit forums for the next trendy stock, and it requires a huge, carefully coordinated online movement to send individual stocks spiking.

But sending meme stocks to the moon isn’t rocket science either. Insider has interviewed investing pros who have simple strategies for spotting meme stocks, as well as the creator of a site that saves investors time by scanning Reddit forums for the next big meme stock.

Just as important as finding the next hot meme stock is avoiding common trading mistakes. An analyst who’s covered GameStop since 2002 told Insider how to spot short squeezes and avoid getting burned, and a strategist shared how to avoid landmines in a rapidly evolving investing landscape that now includes meme stocks.

Read more:

How the meme stock movement began

GameStop is widely considered to be the first meme stock. The long-beleaguered video-game retailer suffered for years as its sales were cannibalized by e-commerce giants like Amazon and by the video-game industry’s shift to online games. Its C-suite became a revolving door for executives: Three different CEOs led the firm in 2018 alone.

GameStop’s miraculous surge began in January 2021 after Ryan Cohen, the founder of online pet-store company Chewy, joined the company’s board and inspired optimism among investors. Cohen could spearhead GameStop’s e-commerce efforts and help the company get back on track, investors believed.

But the main reason behind GameStop’s monumental move was a massive short squeeze.

Convinced the video-game seller was destined for the same fate as Blockbuster, a handful of Wall Street pros bet against the stock through shorting, a process where investors borrow shares of a company they think will decline, then sell them immediately in hopes of buying them back at a cheaper price before returning them and booking a profit.

Small-time traders flipped the script on hedge funds by driving the price of the heavily shorted shares up, forcing the bears to close their positions by buying back borrowed shares, which perpetuated the cycle. The stock then rose to the moon, and the rest is history.

Read more:

What to know about the dangers of meme stocks

If getting rich off meme stocks were easy, thousands of Redditors would be millionaires.

The harsh reality of markets is that for every buyer, there must be a seller. For every trader that nailed the bottom of a stock, someone else sold at the worst possible time – and every time an investor sells at the peak, someone must have bought ahead of the crash. Some unlucky soul bought GameStop shares at its all-time high of $483.

By definition, investing in meme stocks is incredibly risky, and poorly-timed trades can lead to massive losses. Critics have said the practice creates “false markets” and reflects how the market is broken.

Michael Burry, the hedge fund mogul who predicted the housing market crash, told Barron’s via email earlier this summer that a meme stock crash could come soon.

“I believe the retail crowd is fully invested in this theme, and Wall Street has jumped on the coattails,” Burry said. “We’re running out of new money available to jump on the bandwagon.”

Read more:

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Why meme stocks AMC and GameStop made a comeback and spiced up a dull week for markets

Reddit WallStreetBets WSB
  • GameStop and AMC made a comeback this week, in an echo of the Reddit-driven meme-stock frenzy earlier in the year.
  • As short-squeeze candidates, their trading volumes typically rise when their prices break above recent highs, an analyst said.
  • Four market experts explained what was behind this week’s meme-stock volatility.
  • See more stories on Insider’s business page.

GameStop and AMC share prices briefly flared up again this week, injecting some spark into an otherwise lackluster market – and there are explanations for the meme stocks’ surprise return, experts say.

Trading volumes ballooned for both stocks, the darlings of the Reddit crowd, as automatic “stop-loss” orders kicked in. That helped send their share prices soaring on Tuesday by the most since June, by 37% to $225 for GameStop and 26% to $47 for AMC.

Being short-squeeze candidates, shares in both companies usually see larger volumes of buying when their price breaks above recent trading highs. That’s because when traders or funds short a stock, they usually have their stop-loss orders set to kick in once that level is crossed, market analyst Danielle Shay explained.

“If the stock approaches recent highs, they know they are wrong. And they have to buy to cover to exit the position, causing volume buying to come in,” Shay, director of options at Simpler Trading, told Insider.

When a stock hits a recent high, that grabs the attention of retail traders like those on Reddit’s Wall Street Bets. The combination of short-covering and that retail momentum prompts upward buying pressure, Shay said.

For GameStop, there’s another factor. The online-game retailer historically trades higher before an earnings release, and its second-quarter report is due September 8.

And there’s another theory for AMC and GameStop’s surge last week: Retail purchases were ready and waiting to be made again. Both stocks rose simply because the technical setup was in place for a run higher, according to Jake Wujastyk, chief market analyst at TrendSpider.

“There is a large volume shelf shown on both names, which created a base for price to ‘launch’ off of,” he told Insider.

Prices may have nothing to do with underlying value

To further explain what happened, Brian Barnes, CEO and founder of M1 Finance, quoted a message from Warren Buffett’s 2008 shareholder letter: “Price is what you pay. Value is what you get.”

“With things like meme stocks, NFTs, and even lumber, we’ve seen that price can be anything in the short-term,” he said. “Short-term prices are driven by short-term supply and demand, which may have nothing to do with underlying value. “

High demand for meme stocks with a relatively fixed supply has seemed to be one driving factor for these stocks. Add to that, “meme” excitement has become part of a culture that incites a large group to buy a stock solely to affect the price, “stick it to the man,” or because it’s simply fun, Barnes said.

GameStop rose by about $45 per share on Tuesday. Short interest was roughly 7.5 million shares, meaning short sellers lost about $340 million on Tuesday for this stock alone.

But aggregate losses were spread over a large and varying group. Even though the losses were significant, the US equities market represents roughly $50 trillion. That makes this a tiny, even though entertaining, aspect of the overall market, Barnes said.

Only sentiment, no fundamentals

While AMC and GameStop have been dominant names in the meme crowd, other stocks such as BlackBerry and Clover Health were among the most hyped stocks on Reddit this week. The meme-stock pump has been similar to the crypto market, where digital assets usually head in the same direction, driven by the same factor.

“AMC and GME have been very resilient meme stocks,” said Derek Horstmeyer, finance professor at George Mason University’s School of Business. “Since becoming meme stocks, they have correlated together more – meaning as one goes up, the other goes up too. These movements are all based on sentiment and no fundamentals.”

Still, piling into heavily shorted bets comes with downside risks. Anyone considering meme stocks should realize that large fortunes have been lost via speculation, Robert Johnson, a finance professor at Heider College of Business, told Insider.

“I view the meme stocks as a giant bubble that will burst at some point, and bubbles have been around as long as financial markets have been in existence,” he said.

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Short seller Jim Chanos has mocked meme-stock buyers, dismissed crypto, and warned the current market boom dwarfs the dot-com bubble. Here are 14 of his best tweets.

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Jim Chanos.

  • Jim Chanos has ridiculed meme-stock buyers and warned about the asset-price boom.
  • The short seller and Kynikos Associates boss has also questioned Tesla, Virgin Galactic, and crypto.
  • Here are 14 of Chanos’ best tweets.
  • See more stories on Insider’s business page.

Jim Chanos has blasted retail investors as greedy and entitled, warned the current market boom dwarfs the dot-com bubble, and sounded the alarm on cryptocurrencies in recent months.

The veteran short seller and Kynikos Associates boss has also criticized Tesla CEO Elon Musk, dismissed China’s regulatory crackdown as predictable, and compared Warren Buffett’s business model to short selling.

Chanos – who shot to fame for anticipating Enron’s collapse, and now holds short positions against Tesla and AMC Entertainment – tweets using the handle @WallStCynic.

Here are 14 of Chanos’ best tweets, lightly edited for clarity:

1. “Asset prices are up across the board in 2021 (even bitcoin), and the S&P 500 is less than 3% off its all-time high. The sense of entitlement that investors have today is … something.” (July 20, 2021)

2. “$GME is up 780% and $AMC is up 1,470% this year. $AMC has tripled in the past three months. This is not outrage, it is greed. The newest generation of entitled retail ‘investors’ must win all the time, or they cry and blame ‘them.'” (August 5, 2021)

3. “The $AMC apes are openly discussing shorting the Robinhood IPO to ‘stick it to them.’ Anyone else see the irony there?” (July 2, 2021)

4. “Scientists believe the ‘Dragon Man‘ went extinct trading YOLO options on Robinhood.” (June 26, 2021)

5. “I was there as well … what is much crazier now is that the concept and fraud-y stocks are 5-10x the market cap today than in early 2000. And burning much more cash now. Also, no crypto/housing speculation in 1999-2000. Finally, there were no $20-30 billion ‘short-squeeze’ plays then.” (July 31, 2021)

6. “If only we could combine the worst aspects of the the 1997-99 dot-com bubble with those of the 2003-06 residential real estate bubble…” “Hold my beer!” – commenting on companies helping people buy homes through crowdfunding or using their parents’ investments as collateral. (June 29, 2018)

7. “The number of outright scams going on in crypto right now is breathtaking. #GoldenAgeOfFraud” (May 26, 2021)

8. “God save us from yet another 16-year-old crypto CEO in a hoodie claiming they are changing the world.” (August 12, 2021)

9. “You mean to tell me that a totalitarian Communist government can change industries by edict overnight? Interesting. $BABA $DIDI $EDU $GOTU $TAL” – commenting on the Chinese government reining in Alibaba, Didi, and other major companies. (July 23, 2021)

10. “Do you know which companies don’t rally 27% after successful product tests? Companies that people trust. $SPCE” – commenting on Virgin Galactic’s stock soaring after a successful test flight (May 24, 2021)

11. “Tesla ‘FSD’ does not exist. Hundreds of billions of market cap depend on $TSLA and Musk maintaining this fiction. Their driver-assist software remains at Level 2, by their own admission. And despite all the miles-driven everyone points to. These are facts.” – questioning the reality of Tesla’s full self-driving system. (April 3, 2021)

12. “All hail the infallible God of Mars … all unfavorable outcomes are due to the efforts of his technically incompetent knights. Further developments shall come forth in two months, three months maybe. $TSLA” (July 10, 2021)

13. “Lol, Toyota unveiled their robot four years ago. And it wasn’t a man in a leotard.” – ridiculing Tesla for unveiling its humanoid robot using a person dressed up as a robot. – (August 20, 2021)

14. “Buffett’s main business (insurance) is short-selling. It’s the biggest short-selling business there is.” – Chanos explained in a previous tweet that shorting is borrowing money at an uncertain cost, and Buffett’s Berkshire Hathaway invests the premiums it collects from its insurance operations without knowing exactly how much it will pay out in claims. (February 5, 2021)

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US companies are capitalizing on lofty stock prices by selling new shares at the fastest rate in 25 years

AMC stock
  • Publicly listed American companies are rushing to issue new stock.
  • Dealogic data cited by the Wall Street Journal shows the number of “follow-on offerings” at 556 as of August 24, the highest year-to-date level since 1996.
  • The firms that have issued fresh stock include household names like Zoom and smaller meme stocks like Plug Power.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Publicly listed American companies including meme-stock favorites GameStop and AMC are rushing to issue new stock, cashing in on rich valuations, according to a Wall Street Journal report.

Dealogic data cited by the Journal shows follow-on offerings – that is, new stock sale by listed firms – at 556 as of August 24, the highest year-to-date level since 1996. In terms of value, those share offerings were worth a combined $75 billion, the highest ever and up 70% since last year.

On top of GameStop and AMC, which have watched their share prices explode this year, the 556 firms that have issued fresh stock include household names like Zoom and smaller meme stocks like Plug Power. The group of companies runs the gamut in terms of underlying financials, from pandemic winner Zoom to never-profitable Plug.

“People started to take advantage of the incredible run-up in the market,” Josh Weismer, head of US equity at Mizuho Americas, told the Journal. “I think we’re definitely going to continue to see the follow-on market busy.”

In April, before its share price took off, AMC issued 43 million shares, worth roughly $500 million at April 27 prices, though the shares were not sold all at once. Then in June, it issued another 11.6 million, right as the stock price was peaking, raising $587 million in a three-hour sale that was quickly lapped up.

“Our current market prices reflect market and trading dynamics unrelated to our underlying business,” the theater chain said in an SEC filing in June. “We caution you against investing in our Class A common stock, unless you are prepared to incur the risk of losing all or a substantial portion of your investment.”

Still, eager to cash in on its unprecedented valuation, AMC proposed issuing 25 million additional shares and said it would put the decision to a shareholder vote. It backed away from the vote just weeks later, following backlash from the company’s devoted retail-trader base.

Read the original article on Business Insider

Meme stocks are riding a wave of Reddit enthusiasm again, as traders cheer fresh gains in GameStop, AMC, and BlackBerry

AMC and GameStop
AMC and GameStop

  • Meme stocks are riding a renewed wave of enthusiasm from Reddit on Wednesday.
  • Among the most discussed stocks on Wall Street Bets were GameStop, AMC, Blackberry, Clover Health, and Cassava Sciences.
  • On the popular forum, one user – in a post that was upvoted over 20,000 times – said: “GME GANG IS BACK.”
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Meme stocks are riding a renewed wave of enthusiasm from Reddit on Wednesday, as traders pile into old favorites amid a fresh wave of gains.

AMC and GameStop both climbed by double digits on Tuesday, but have given up some gains early in Wednesday’s session. Still, Reddit traders are cheering a new bull run for both names.

Among the most hyped stocks on Wall Street Bets – Reddit’s 10-million strong forum – were GameStop, which was mentioned 1,900 times in the last 24 hours, and AMC Entertainment, which garnered 638 mentions, according to data by Quiver Quantitative, an analytics firm. Blackberry was also mentioned 355 times as well as Clover Health and Cassava Sciences.

Data from WSBtrending also illustrates a rise in chatter around meme stocks.

On the Reddit forum, one user – in a post that was upvoted over 20,000 times – said: “GME GANG IS BACK.”

Another user said they turned $90,000 to $250,000 in one day, while another said they spent $5,000 and grew it to $20,000 in two hours. Both posts, referring to GameStop, have received thousands of upvotes.

Shares of the meme stock surged to their highest level in 10 weeks on Tuesday, though the stock has fallen in Wednesday trading.

Here’s where the top-mentioned stocks on Wall Street Bets were trading as of 10 a.m. ET on Wednesday:

GameStop: down 6.66% to $198.28

AMC Entertainment: down 0.38% to $44.09

Blackberry: up 1.60% to $11.28

Clover Health: down 2.19% to $8.73

Cassava Sciences: down 28.97% to $83.69

Meme stocks dominated market headlines for weeks at the beginning of this year, led by GameStop. The Texas-based company’s stock skyrocketed from around $40 to intraday highs of over $450. AMC rallied as well, albeit to a fraction of the price GameStop achieved at its peak.

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These are the 10 most popular stocks Reddit’s Wall Street Bets is talking about

Reddit Wall Street Bets Retail Trading GameStop
  • Reddit’s Wall Street Bets forum entered the mainstream during the January GameStop craze.
  • From GameStop to AMC Entertainment, retail investors congregating on the subreddit are a driving force in the stock market.
  • These are the 10 most popular stocks Wall Street Bets is talking about right now.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

It’s paid to follow what stocks Reddit’s Wall Street Bets crowd are talking about this year, as several have gone through epic rallies and seen heightened volatility.

From GameStop in January to AMC Entertainment in June, the near 11 million-member forum has driven the conversation in so-called meme stocks that have exploded higher amid overwhelming demand from retail investors. Strong demand for stocks with shaky fundamentals has led to several hedge fund blowups that were caught on the opposite side of the trade betting against the company in question.

GameStop’s short-squeeze, in-part led by the Wall Street Bets crowd, led to a more than 50% drawdown in multi-billion dollar hedge fund Melvin Capital. Meanwhile, the sharp rally in struggling movie theater chain AMC Entertainment caused billions of dollar in losses for short-sellers in May and June.

As traders look to replicate the success of Wall Street Bets stocks, one data aggregator is compiling the most mentioned stocks on Reddit’s forum.

These are the top 10 stocks Reddit’s WallStreetBets forum is focused on right now, according to data compiled by SwaggyStocks. The list is based on mentions over the past 24 hours.

10. Apple

Ticker: AAPL
Wall Street Bet Mentions Over Past 24 Hours: 111
Market Capitalization: $2.47 trillion
1-Week Performance: -0.4%

An Apple store employee's dark silhouette next to a white glowing Apple logo
An Apple store employee in New York.

9. Pfizer

Ticker: PFE
Wall Street Bet Mentions Over Past 24 Hours: 117
Market Capitalization: $280.0 billion
1-Week Performance: -4.1%

Pfizer
Oil markets surged in the hours after Pfizer announced positive results from its coronavirus vaccine study.

8. Tesla

Ticker: TSLA
Wall Street Bet Mentions Over Past 24 Hours: 122
Market Capitalization: $699.3 billion
1-Week Performance: 6.4%

Tesla SuperCharger

7. Nvidia

Ticker: NVDA
Wall Street Bet Mentions Over Past 24 Hours: 162
Market Capitalization: $547.2 billion
1-Week Performance: 12%

NVIDIA computer graphic cards

6. ContextLogic

Ticker: WISH
Wall Street Bet Mentions Over Past 24 Hours: 294
Market Capitalization: $4.2 billion
1-Week Performance: 2.5%

Wish CFO
Wish CFO Rajat Bahri.

5. Clover Health

Ticker: CLOV
Wall Street Bet Mentions Over Past 24 Hours: 369
Market Capitalization: $3.6 billion
1-Week Performance: 9.2%

Andrew Toy Clover Health
Clover Health president and chief technology officer Andrew Toy

4. Blackberry

Ticker: BB
Wall Street Bet Mentions Over Past 24 Hours: 412
Market Capitalization: $6.2 billion
1-Week Performance: 14.8%

A shareholder uses his Blackberry while waiting for the Research In Motion annual meeting to begin in Waterloo, July 17, 2007.
BlackBerry shareholder

3. Alibaba

Ticker: BABA
Wall Street Bet Mentions Over Past 24 Hours: 507
Market Capitalization: $474.3 billion
1-Week Performance: -1.2%

An office building of Alibaba Group is pictured on August 10, 2021 in Zhengzhou, Henan Province of China.
An office building of Alibaba Group is pictured on August 10, 2021 in Zhengzhou, Henan Province of China.

2. AMC Entertainment

Ticker: AMC
Wall Street Bet Mentions Over Past 24 Hours: 824
Market Capitalization: $22.3 billion
1-Week Performance: 19.1%

AMC Entertainment

1. GameStop

Ticker: GME
Wall Street Bet Mentions Over Past 24 Hours: 2,440
Market Capitalization: $14.5 billion
1-Week Performance: 28.6%

GameStop
Queue in front of Gamestop store in Christmas atmosphere in Milan during coronavirus emergency, Milan, Italy, on November 03 2020.

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GameStop surges to the top of Wall Street Bets discussions as the stock sees its biggest jump in 10 weeks

People wait to cross the street in front of GameStop at 6th Avenue on March 23, 2021 in New York.

Shares of Gamestop surged to their highest level in 10 weeks, with chatter surrounding the video game retailer surging on social media site Reddit on Tuesday.

The stock surged as much as 37% to an intraday high of $225. It was trading 23% higher at $203 as of 3:23 p.m. ET.

The Grapevine, Texas-based company was the top-hyped stock on Reddit investing thread Wall Street Bets, mentioned 830 times in the last 24 hours, according to data from Quantitative Quiver, an analytics firm.

One post in particular, at over 4,000 words long, was upvoted more than 5,000 times.

The user, who goes by Roman, is betting the stock price goes into the thousands in a “couple of months.”

The user compared Gamestop with fellow meme-stock AMC Entertainment, saying: “GME and AMC are like brothers in arms, with ‘similar’ fundamentals, and through the major part of 2021 those two have been moving in tandem, strongly following linear correlation principle.”

“Why if two stocks have very similar fundamental and technical backgrounds, one is allowed to moon a little bit, while the other one is being knocked out each time right before the lift off should occur? The answer [is] fairly obvious, and it’s because some big financial boys want things to go this way,” he said.

The GameStop frenzy dominated market headlines for weeks at the beginning of this year, as the stock skyrocketed from around $40 to intraday highs of over $450. AMC rallied as well, albeit to a fraction of the price GameStop achieved at its peak in January.

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