Don’t short meme stocks as retail and institutional investors rotate back into Reddit trades, market strategist says


Traders shouldn’t be shorting so-called meme stocks amid a rotation back into Reddit trades from both institutional and retail investors, according to Joe Terranova, senior managing director and chief market strategist at Virtus Investment Partners.

Terranova sat down with CNBC on Thursday to discuss the recent resurgence of meme stocks and said when it comes to the social media favorites, “the first thing you don’t do is you don’t short these stocks.”

To his point, on Tuesday alone, AMC and Gamestop’s rise caused short sellers to lose $618 million in a single day, according to data from ORTEX.

The market strategist went on to describe the rotation back into Reddit favorites like GameStop and AMC from both retail traders and institutions after cryptocurrencies’ recent leverage unwinding.

Despite a common belief that these trades are run by the retail community, Terranova says institutions are just as involved.

“Let’s not think that this is just all retail traders. This is institutional money, this is hedge funds, they’re participating on the long-side, and I don’t think you fight it,” he said.

When asked whether this was a short-term trade or a “fundamental investment” Terranova laughed and said it was clearly just a trade as far as institutions are concerned.

The strategist noted that there are algorithms used by institutions that are recognizing price momentum in meme stocks and “positioning accordingly on the long-side.”

Shares of Gamestop are up more than 35% this past week as increased chatter on Reddit, and other social media platforms has brought a second wind to the video game retailer.

Fellow Reddit darling AMC‘s stock is also on fire, surging more than 45% since last Thursday.

Blackberry has seen a resurgence of late as well, with Reddit traders using rocket emojis to celebrate its return to around $10 per share.

Terranova says as these Reddit stocks rise, the key question isn’t how to trade them, but rather: what’s next?

“The question now becomes where else do they target? Do they go to Beyond Meat which has a 24% short interest? Do they look at Roblox, which is trading incredibly strong? I think ultimately that they do, but absolutely you don’t short these stocks,” Terranova said.

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Video game stocks are primed to be the next hot trade for millennials, research firm says

  • Data on investment from retail traders points to video game companies becoming the next hot trade, particularly for millennial investors, says VandaTrack.
  • A surge in investment by retail traders has been seen in names including Roblox, Sea Ltd., and Nvidia.
  • “While it’s not 100% obvious that NVDA belongs to the gaming category…purchases of the stocks have risen inline with Roblox and Sea.,” Vanda said in a note.
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Video game companies are gaining popularity with retail investors, with the signal coming from a pickup in purchases in shares of game platform Roblox, among other names, according to VandaTrack.

In a weekly update, VandaTrack, which monitors trading activity by US retail investors, said Roblox has seen a surge in retail investment since releasing its first-quarter financial report earlier in May. The popular gaming platform in its first financial report since its shares started publicly trading in March, posted a wider per-share loss than a year earlier. But the stock soared on the report as Wall Street regarded Roblox’s overall statement as better than anticipated.

Positive sentiment has fed through to Sea Ltd., a video game and e-commerce company based in Singapore, and Nvidia, which makes gaming graphics cards, said VandaTrack. Platforms Super League Gaming and Skillz are also candidates for another round of increased attention from retail investors.

“The personal attachment that millennial investors have with these companies makes them prime candidates to benefit from future purchases. Retail investors bought them late in the game (when the retail bubble exploded in February), so we think there is a high likelihood that they will revisit this opportunity,” wrote Ben Onatibia, a macro strategist at Vanda.

It’s “not 100% obvious” that Nvidia belongs to the video game category, as the case can be made that it falls into semiconductors or hardware, but retail purchases of the company’s shares have risen in line with Roblox and Sea, Vanda said. Retail investors flocked to Nvidia after the company said it would enact a 4-to-1 stock split, effective in July.

Nvidia is set to release first-quarter earnings late Wednesday.

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Roblox jumps after striking deal with Hasbro for digital Nerf and Monopoly products

“Jailbreak’ is a popular title on the Roblox platform.

  • Roblox shares rose about 9% on Tuesday after the online gaming platform said it reached a digital product deal with Hasbro.
  • The Roblox platform will introduce Nerf-blasters and a version of the Monopoly board game.
  • Hasbro shares gained after the deal, terms of which were not disclosed.
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Roblox stock leapt Tuesday, with toymaker Hasbro reaching a deal to launch some digital products with the online games platform.

The deal will feature a range of Roblox-inspired Nerf blasters and a Roblox version of the classic board game Monopoly. No financial terms of the agreement were released in a joint statement.

Roblox shares bounced up as much as 8.9% to an intraday high of $81.70 then pared the gain to 7.8%. The stock began trading last month on the New York Stock Exchange and spiked up during its trading debut.

A platform popular with kids, Roblox allows players to jump from games created by other people or to build games themselves. Hasbro shares on Tuesday were up 2%.

The Nerf blasters will include a redeemable code for players to use a virtual blaster on their avatars and each Monopoly: Roblox 2022 edition game will include a redeemable code for a virtual item.

The products will add to Roblox’s lineup of titles which includes “Adopt Me,” in which players care for virtual pets. Tuesday’s statement said NERF later this year will launch its own branded experience on Roblox, with detail set for release later this spring.

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The New York Stock Exchange is minting crypto art commemorating the first trades of 6 companies that recently went public

  • The New York Stock Exchange announced on Monday that it had minted six NFTs.
  • The NFTs represent the first trades of several companies that recently went public on the NYSE.
  • The crypto art pieces are not currently up for sale, but will be gifted to the companies, a source told Insider.
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The New York Stock Exchange (NYSE) announced on Monday that it was getting into crypto art by minting its own digital collectibles designed to commemorate the first public trade of six stocks.

The NYSE is not only the largest stock exchange in the world, but it is also the first to get into crypto art. The collectibles will represent the first trades of Spotify, Snowflake, Unity, DoorDash, Roblox, and Coupang. NYSE said it plans to launch more first-trade collectibles in the future.

The digital collectibles will operate as non-fungible tokens or NFTs. NFTs are digital collectible tokens that allow the buyer to connect their name directly to the creator via the blockchain.

NFTs have boomed in recent months. In February, one crypto art piece sold for nearly $70 million. Since, celebrities and public figures from Twitter CEO Jack Dorsey to singer Shawn Mendes have gotten in on the trend, which has brought in millions for opportunistic creators and resellers of the pieces.

Read more: NFTs, or non-fungible tokens, are the hottest thing in entertainment, art, and crypto right now. Here’s a simple explanation of the craze.

While the NYSE appears to be getting in on the NFT trend, the exchange’s tokens are not up for sale. The NFTs are housed on, a less than month-old NFT trading platform that has already launched crypto art sales for several celebrities including Snoop Dogg and Boy George.

A source familiar with the matter told Insider NYSE does not plan to sell its NFTs, but has already gifted them to the respective companies. The NYSE also plans to mint future NFTs and gift those to the memorialized companies as well, according to the source.

The NFTs for each company feature a short clip containing information about the first trade, including the sale price, date, and a string of numbers representing the first trade quote code.

Stacey Cunningham, the President of NYSE, said the NFTs will help commemorate the very first moments a company joins NYSE by highlighting the data from a company’s very first trade.

“NYSE technology is processing over 350 billion order, quote and trade messages across our markets on our busiest days, more than any other exchange in the world,” Cunningham said in a LinkedIn post. “Only one of those messages marks the NYSE First Trade: the exact moment a company became public, creating an opportunity for others to share in their success.”

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A Twitter and Roblox user posing as a White House reporter snuck in 4 questions to press secretary Jen Psaki

white house press secretary jen psaki
White House Press Secretary Jen Psaki.

  • A Twitter and Roblox user posing as a correspondent snuck 4 questions into White House briefings.
  • The individual emailed questions to White House pool reporters using an array of invented journalist titles.
  • See more stories on Insider’s business page.

A Twitter and Roblox user who posed as a White House Correspondents Association member managed to land four questions in recent Biden administration briefings, Politico reported.

Politico’s Christopher Cadelago found that the individual – who goes by the name Kacey Montagu – successfully snuck in questions to press secretary Jen Psaki by emailing White House pool reporters using an array of invented journalist titles.

Some reporters declined to pass along Montagu’s inquiries. But correspondents at publications like the The Plain Dealer and CQ Roll Call followed through on the requests, asking Psaki questions on topics like COVID-19 travel bans and the president’s reaction to Microsoft being hacked.

Montagu used various aliases in emails to pool reporters, Cadelago reported. Sometimes the aliases identified as a White House correspondent at an outlet called “WHN.” Other times they named themselves as a political correspondent at an entity called “WHSG.” And in at least one instance, they claimed they were a reporter at The Daily Mail.

Montagu, whose true identity is unknown to Insider, built credibility among White House reporters and staff by starting two political news accounts on Twitter, @WHschedule and @WHpoolreport. Montagu has had several exchanges with White House officials, Cadelago reported.

The internet-savvy user appears to have a general interest in politics. In addition to running two White House-focused Twitter accounts, acquaintances of Montagu told Cadelago that they would spend time in a section of the virtual world Roblox where users role-play as US government officials.

“I love journalism, and I think the Press Corps is doing a pretty bad job at the moment, so I decided I would ensure some transparency and ask some questions me and some friends wanted the answer to,” the person Cadelago identified as Montagu wrote in an email to Politico.

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How to redeem a Roblox gift card in 2 different ways, so you can buy in-game accessories and upgrades

There are two ways you can redeem a Roblox gift card.

  • You can redeem a Roblox gift card in a browser but not in the app.
  • You can redeem your gift card by applying the balance to your account, or by using it during the checkout process.
  • You may run into issues if your code includes a one or a zero; in that case, replace them with the letter “I” or “O,” respectively.
  • Visit Insider’s Tech Reference library for more stories.

Roblox contains a wide world of user-generated games, and while playing is free, in-game upgrades and avatar accessories (as well as a premium membership) will cost you.

But if you have a Roblox gift card, you can use that to pay for the platform’s virtual currency, Robux, and take advantage of those extra options.

There are two ways to redeem a Roblox gift card: Applying the balance to your account or using it while checking out. Either way, you’ll need to go through a web browser, because these processes are not available on the app.

How to delete a Roblox account if you’re concerned about your child’s engagement with the online gaming platformHow to redeem codes for games purchased in the Epic Games Store, using the Epic Games Launcher or websiteHow to redeem a Steam gift card code to add funds to your Steam Wallet, or download a specific gameHow to install ‘Minecraft’ mods and resource packs to completely reinvent your game

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Roblox shares surge another 12% a day after the online-gaming company’s market debut


Shares in online gaming platform Roblox surged as much as 12% in regular trading Thursday, its second day of public trading.

Roblox’s direct listing on Wednesday saw its shares pop 54%, giving the company that owns just one game a $45 billion valuation. For comparison, rival video-game company Electronic Arts is valued at $37 billion. Microsoft’s priciest acquisition of a video-game company was its $7.5 billion purchase of ZeniMax Media, the video-game publisher behind blockbuster games like “Doom” and “Fallout.”

Roblox’ co-founder David Baszucki has so far gained the most from the company’s direct listing. His stake in the company is now worth about $4.6 billion, according to Bloomberg, after the stock’s first day of listing.

“We love the direct listing for Roblox, because we’re all going to come together and that first trade is going to be at the same price for everyone,” Baszucki told Bloomberg in an interview on Wednesday.

The company’s stock rose to $77.27 per share in the pre-market after closing the previous day’s session at $69.50 per share.

Screenshot 2021 03 11 at 12.38.15
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Roblox spikes 16% in public trading debut after $44 billion direct listing

The popular Roblox game, “Jailbreak.”

Shares of Roblox spiked as much as 16% on Wednesday in the online gaming company’s first day of public trading. Shares began trading at $64.50, hitting an intraday high of $74.83.

The opening trades give the San Mateo, California-based firm a valuation of $44 billion.

Roblox was valued at just $4 billion back in February 2020 when the venture capital firm Andreessen Horowitz led a $150 million funding round for the company. Then, in January, Roblox raised around $520 million in a Series H private fundraising round that valued the fully diluted business at $29.5 billion.

Roblox has seen an increased interest in its online gaming creation platform due to the pandemic which made 2020 a banner year for the firm.

According to the Roblox’s S1 Prospectus, the company boasts 32.6 million active users and earned $923.9 million in revenue during 2020.

Roblox did incur a $253 million net loss on the year, but the company continues to produce significant cash flows, posting $411 million of free cash flow in 2020.

Roblox also continues to focus on paying its developers. In 2020, $328.7 million went to Roblox developers via the platforms digital currency, Robux, which can be converted to cash.

Over 1,250 developers earned at least $10,000 in the digital currency Robux from the platform and over 300 earned $100,000 or more.

David Baszucki, Roblox’s founder and CEO, spoke with CNBC on Tuesday about the company’s public debut.

The CEO said he believes the growth at his company “will continue even after COVID” because of the community of gamers and developers that they’ve been able to create.

When asked what investors should be looking for as a “fair comp” for Roblox, Baszucki said he believes Roblox is “forging of a new category” and said it could be called something like a “future metaverse category.”

Read more: Buy these 36 stocks poised to surge this spring as Biden’s stimulus roll-out pours into the economy, Jefferies says

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Roblox wants to bring older age groups to its online gaming platform

  • The company has a goal to appeal to age groups ranging between six and 60 years old.
  • The company has been successful with children under the age of 13 years old.
  • The company hopes older users will then invite their friends to the platform. 
  • Visit the Business section of Insider for more stories.

Roblox is eyeing an older age demographic as it explores potential growth opportunities for its online gaming platform. 

The company, which allows users to easily develop and play video games, said on Friday during its investor day that it has a goal of appealing to a wide age range — six to 60 years old.

“We have tremendous success reaching the 13 and under audience, our goal however is to create a platform and brand that appeals to all ages,” Chief Business Officer at Roblox, Craig Donato, said during the investor day presentation.

To achieve that goal, the online game platform is working on content ratings that match users with experiences that are appropriate for their age, according to Donato. Roblox also personalized its search and discovery based on a person’s age, geography, and skill level, among other factors. 

Donato said the company expects that older users will invite friends of their own age.

Roblox is also expanding its demographic reach by enabling deeply immersive experiences through dynamic simulation, faster loading, and unique rendering, according to Donato. 

The gaming giant is popular among over half the children in the United States, according to CNBC. As of July 2020, Roblox had over 150 million monthly active users, the company said

The platform mainly allows children to create and play video games and chat with their friends. But with the large presence of children on Roblox, moderation concerns were raised and created a challenge for the company, Insider previously reported.

In a case that lacked moderation, a group of players simulated an assault on a 7-year-old’s character in a game on Roblox. The company now offers security features that parents can use to restrict chats or the type of games children play.

On Monday, the video game platform said that it plans to go public via a direct listing in March on the New York Stock Exchange and will issue 198.9 million shares, according to a company filing it submitted to the SEC.


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Affirm joins Roblox in delaying its planned 2020 IPO after monster gains from Airbnb, Doordash

affirm installment loan
  • Affirm is delaying its planned IPO until next year, making it the second company in days to put their public debut on hold, according to The Wall Street Journal.
  • The move comes shortly after Roblox decided to postpone its planned 2020 IPO until next year to seek a higher price, given the strong investor demand for high-growth tech IPOs.
  • The recent IPO frenzy has been accelerated by the strong trading debuts of Airbnb and DoorDash earlier this week.
  • Visit Business Insider’s homepage for more stories.

Affirm’s planned 2020 IPO has been put on hold until next year, The Wall Street Journal reported on Saturday, citing people familiar with the matter.

The point-of-sale lender’s decision to postpone its IPO comes shortly after Roblox decided to postpone its planned 2020 IPO until next year to seek a higher price, given the strong investor demand for high-growth tech IPOs.

Affirm planned to begin pitching its shares to potential investors this coming week, and was on track to receive a market valuation of as much as $10 billion, according to The Journal.

Read More: 2 investment chiefs at John Hancock’s $692 billion investing arm say the post-COVID recovery might disappoint in 2021 – but investors can profit with these 3 strategies

Part of the reason Affirm delayed its offering was due to the high price spikes in recent offerings from Airbnb and DoorDash, as well as delays at the Securities Exchange Commission due to a surge in listing requests from private companies, the Journal reported.

Airbnb surged as much as 143% in its first day of trades on Thursday, while DoorDash closed higher by 86% in its first day of trading on Wednesday.

Now, Affirm’s public debut won’t come until January at the earliest, according to the report. 

Affirm and Roblox are attempting to strike a delicate balance of not leaving any money on the table by pricing their IPO at too low of a price, yet also not pricing their shares too high, which might lead to a weak trading debut. Meanwhile, both companies are hoping (and betting on) that the IPO window remains open early next year.

A steep correction in the stock market can occur at any time, closing the IPO window, as that’s not an ideal environment for a private company to go public.

BlackRock CEO Larry Fink believes the recent IPO frenzy is “unsustainable” and could lead to “many accidents.”

Read More: Cathie Wood is beating 99% of fund managers this year. The ARK CEO and her team share their outlooks for 2021 – including thoughts on Tesla’s $5 billion stock sale, the Salesforce-Slack tie-up, and bitcoin’s meteoric rise.

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