Regulators have fined MassMutual $4 million for not keeping tabs on Roaring Kitty, the trader at the heart of the GameStop saga

Keith Gill
  • MassMutual will reportedly pay a $4.75 million fine to settle allegations that a subsidiary failed to supervise Keith Gill.
  • Gill, known as Roaring Kitty on Reddit and other social media , worked for MML Investors Services until his resignation in January.
  • The settlement includes an overhaul of MassMutual’s social media policies.
  • See more stories on Insider’s business page.

MassMutual has agreed to pay $4.75 million as part of a settlement over allegations by Massachusetts securities regulators that one of its subsidiaries failed to adequately supervise its agents, including Roaring Kitty, the investor whose bullishness on GameStop contributed to a trading frenzy in the so-called meme stock earlier this year, reports said Thursday.

Keith Gill, known as Roaring Kitty on social media, worked for MassMutual’s MML Investors Services subsidiary until his resignation in January. Massachusetts Secretary of the Commonwealth William Galvin said MML Investors Services failed to adequately supervise the trading activity and online activities of Gill and other agents.

The settlement said Gill was carrying out trades on behalf of three other people not affiliated with MassMutual without the insurer’s knowledge, according to The New York Times. MassMutual neither admitted nor denied the allegations.

Gill amassed a following after he invested $53,000 in GameStop in 2019 and saw the valuation eventually climb to millions of dollars. He talked about GameStop stock on YouTube in his spare time away from his work as a registered broker at MML Investors Services.

A report by broadcaster WWLP said an investigation found that MassMutual failed to detect or monitor about 1,700 trades effected by Gill in the accounts of three other individuals, as well as transactions effected by Gill that were nearly double MassMutual’s per-transaction limit of $250,000, including at least two trades in GameStop of more than $700,000.

The settlement includes an overhaul of MassMutual’s social media policies, Reuters reported. Galvin said the company also agreed to pay a separate $750,000 fine for failing to register 478 broker-dealer agents, the report said.

Read the original article on Business Insider

Retail investors were net sellers of AMC on Tuesday for the first time since February even as the stock surged 9%

AMC stock
  • Retail investors were net sellers of AMC stock on Tuesday for the first time since February, according to new data from Vanda Research.
  • That occurred on the same day AMC shares closed 9% higher.
  • Vanda attributes the upward price movement to buying by institutional investors.
  • See more stories on Insider’s business page.

Retail investors were net sellers of AMC Entertainment stock on Tuesday for the first time since February, even as shares climbed 9%, according to new data from Vanda Research.

The firm says the gains were instead driven by institutional investors.

“Many hedge funds are now trying to anticipate changes in retail sentiment and buy these stocks before mom and pop investors get involved,” Vanda analysts wrote.

The stock is now up more than 2,000% since the start of 2021.

AMC on Tuesday said more than 2 million people attended a movie at its theaters during Labor Day weekend, surpassing attendance for the same holiday weekend in 2019, before the coronavirus pandemic hit.

The firm noted a stark slowdown in retail purchases of AMC shares. According to Vanda’s data, day traders were buying more than $1 billion per week during peak meme-stock rallies in January and June. But since the stock’s latest rally started in August, they’ve bought less than $250 million.

AMC has been a day-trader favorite for months, attracting loads of posts on social-media sites like Reddit’s Wall Street Bets, StockTwits, and Twitter. Those retail investors have banded together on multiple occasions to squeeze the shares of heavily shorted companies higher.

Read the original article on Business Insider

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.

Read the original article on Business Insider

These are the 10 most popular stocks being talked about on Reddit’s Wall Street Bets forum

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.

But while some stocks popular with the Reddit crowd have seen massive gains, some have also seen epic losses. Many meme stocks have seen accelerating declines, with AMC Entertainment and GameStop both down more than 40% from their June highs.

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. Paysafe

Ticker: PSFE
Wall Street Bet Mentions Over Past 24 Hours: 85
Market Capitalization: $7.8 billion
1-Week Performance: -22%

FILE PHOTO: A Paysafe booth is shown on the exhibit hall floor during the Money 20/20 conference in Las Vegas, Nevada, U.S. on October 24, 2017. REUTERS/Steve Marcus

9. SoFi

Ticker: SOFI
Wall Street Bet Mentions Over Past 24 Hours: 88
Market Capitalization: $13.8 billion
1-Week Performance: -15%

sofi fintech

8. Amazon

Ticker: AMZN
Wall Street Bet Mentions Over Past 24 Hours: 107
Market Capitalization: $1.67 trillion
1-Week Performance: -1%

whole foods amazon

7. UWM Holdings

Ticker: UWMC
Wall Street Bet Mentions Over Past 24 Hours:111
Market Capitalization: $12.0 billion
1-Week Performance: 2%

Homes along the beach in Virginia Beach, Virginia.
Homes along the beach in Virginia Beach, Virginia.

6. GameStop

Ticker: GME
Wall Street Bet Mentions Over Past 24 Hours: 114
Market Capitalization: $11.6 billion
1-Week Performance: 2%

GameStop

5. AMC Entertainment

Ticker: AMC
Wall Street Bet Mentions Over Past 24 Hours: 178
Market Capitalization: $17.0 billion
1-Week Performance: 4%

AMC Entertainment

4. Clover Health

Ticker: CLOV
Wall Street Bet Mentions Over Past 24 Hours: 182
Market Capitalization: $3.7 billion
1-Week Performance: -4.7%

Andrew Toy Clover Health

3. Apple

Ticker: AAPL
Wall Street Bet Mentions Over Past 24 Hours: 217
Market Capitalization: $2.46 trillion
1-Week Performance: 3%

An Apple store employee's dark silhouette next to a white glowing Apple logo

2. ContextLogic

Ticker: WISH
Wall Street Bet Mentions Over Past 24 Hours: 282
Market Capitalization: $5.8 billion
1-Week Performance: -33%

Wish CFO

1. Tesla

Ticker: TSLA
Wall Street Bet Mentions Over Past 24 Hours: 294
Market Capitalization: $690.9 billion
1-Week Performance: -4%

Tesla SuperCharger

Read the original article on Business Insider

Retail traders are cheering on Tilray’s 27% pop after the cannabis company’s first earnings report since merging with Aphria

Tilray marijuana
  • Retail traders are cheering on Tilray’s 27% stock pop on Wednesday after the cannabis company turned in its first earnings report since merging with Aphria.
  • A Wall Street Bets post highlighted that the cannabis company increased EBITDA 285% year over year.
  • Tilray is far from it’s 2018 all-time highs but many retail traders seem optimistic the stock will rally “to the moon.”
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Retail investors on Wednesday cheered Tilray’s 27% single-day stock pop after the cannabis company recorded its first quarter of earnings after merging with Aphria.

The Toronto, Ontario-based firm jumped to an intraday high of $16.18 Wednesday, the highest point in over two weeks, but still well below its post-IPO record of $300 in 2018.

“$TLRY this is going back to $150. Buy and hold!” one user said in Stocktwits. Another commented that the stock had potential to be “life-changing.” Tilray was trending #1 on Stocktwits Wednesday morning.

The cannabis company posted net income of $33.6 million for the fiscal fourth quarter, compared to a loss of $84.3 million from the prior year. EBITDA nearly quadrupled to hit $12.3 million.

“Still down bad but we’re getting there. To the moon boyz!” one Reddit user commented on a WallStreetBet’s post highlighting the company’s 285% yoy adjusted EBITDA increase.

Tilray’s stock has fallen roughly 5% since it completed its merger with Aphria in May, but the company said it has already benefited from millions of dollars in cost savings from the combination.

“In a very short period of time since our business combination was finalized, we transformed and strengthened Tilray, delivered solid results amid continued COVID-19 lockdowns and restrictions and achieved $35 million in synergies to date – well on our way to delivering $80 million in cost savings over the next 16 months,” said Tilray CEO Irwin D. Simon.

Read more: These 5 stocks offer the most potential for a short squeeze this week for retail investors, according to Fintel

Read the original article on Business Insider

These are the top 10 meme stocks Reddit’s Wall Street Bets is talking about right now

WallStreetBets

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.

From GameStop in January to AMC Entertainment last month, the 10.6 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 meme stocks Reddit’s WallStreetBets forum is focused on right now, according to data compiled by SwaggyStocks. The list excludes mega-cap tech stocks and is based on mentions over the past 24 hours.

10. Cleveland Cliffs

Ticker: CLF
Wall Street Bet Mentions Over Past 24 Hours: 89
Market Capitalization: $10.3 billion

GettyImages 1228399692
Hot molten steel in a blast furnace.

9. Virgin Galactic

Ticker: SPCE
Wall Street Bet Mentions Over Past 24 Hours: 124
Market Capitalization: $10.7 billion

Virgin galactic whiteknighttwo
A Virgin Galactic spacecraft attached to its carrier vehicle, WhiteKnightTwo.

8. BlackBerry

Ticker: BB
Wall Street Bet Mentions Over Past 24 Hours: 145
Market Capitalization: $7.0 billion

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

7. Palantir

Ticker: PLTR
Wall Street Bet Mentions Over Past 24 Hours: 192
Market Capitalization: $46.9 billion

Palantir

6. Clean Energy Fuels

Ticker: CLNE
Wall Street Bet Mentions Over Past 24 Hours: 196
Market Capitalization: $2.0 billion

Clean Energy Fuels

5. SoFi

Ticker: SOFI
Wall Street Bet Mentions Over Past 24 Hours: 227
Market Capitalization: $13.9 billion

sofi fintech

4. GameStop

Ticker: GME
Wall Street Bet Mentions Over Past 24 Hours: 275
Market Capitalization: $14.4 billion

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

3. ContextLogic

Ticker: WISH
Wall Street Bet Mentions Over Past 24 Hours: 289
Market Capitalization: $7.7 billion

Wish CFO
Wish CFO Rajat Bahri.

2. AMC Entertainment

Ticker: AMC
Wall Street Bet Mentions Over Past 24 Hours: 297
Market Capitalization: $26.1 billion

AMC Entertainment

1. Clover Health

Ticker: CLOV
Wall Street Bet Mentions Over Past 24 Hours: 468
Market Capitalization: $4.3 billion

2016 05 04T000000Z_967239957_D1AETCDLYFAA_RTRMADP_3_FUNDS SOHN.JPG
Chamath Palihapitiya, Founder and CEO of Social Capital LP, speaks at the Sohn Investment Conference in New York on May 4, 2016.

Read the original article on Business Insider

Michael Burry says the market is on the brink of collapse. A WallStreetBets user argues the famed investor’s predictions have been mostly wrong for the last 15 years.

Michael Burry big short
  • A post that analyzes how often Michael Burry’s bearish forecasts come true is trending on Reddit’s WallStreetBets.
  • The “Big Short” investor often warns about financial bubbles and crashes.
  • The Reddit user concluded that Burry is more often wrong than right with his predictions.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

A post that analyzes how often Michael Burry’s bearish forecasts come true is trending on Reddit’s Wall Street Bets forum.

The legendary investor rose to fame betting against the US housing market in the mid-2000’s, with his billion-dollar bet immortalized in the book and movie “The Big Short.”

Since then, Burry has issued several bearish forecasts, like a 2017 warning that the global financial system is going to collapse, and most recently a warning that the market is in the “greatest speculative bubble of all time.

User “u/nobjos” who told Insider their first name is “Noble” posted an analysis in several Reddit threads questioning how many times Burry has been correct. The user originally posted it on their Substack blog, though the post in WallStreetBets received over 5,000 upvotes.

“I recently observed that in every news article/tweet, he always talks about an impending crash. As recently as last week, he issued another warning stating that there would a ‘mother of all crashes soon due to the meme-stock and *****currency rally that will approach the size of countries,'” Noble said. “Basically, what I wanted to analyze was whether Michael Burry always predicts a crash and gets lucky when there is an actual crash or does his prediction actually turns out to be true most of the time?”

Noble tracked news articles that mentioned Burry forecasts from the last 15 years. He then compared the S&P 500’s return one month, one quarter, and to date after Burry’s bearish call. If Burry specified a stock, he used the particular stock as a benchmark.

The analysis shows that the S&P 500 has gone up 93% since Burry’s 2017 warning about a global financial meltdown and 50% since his 2019 prediction that index fund inflows are the next market bubble. Tesla stock has mostly gone down following Burry’s latest musings.

reddit thing

Noble concludes that “Burry’s only prediction that we can say confidently was right” after 2008 is that he called bitcoin a “speculative bubble” in March 2021. Bitcoin has dropped roughly 30% since his prediction, though Noble noted there isn’t enough data yet to show how Burry’s prediction will turn out over the next few years.

“I have immense respect for Michael Burry and his skills. He was a doctor and worked as a Stanford Hospital neurology resident and then left to start his own hedge fund that became extremely successful. But, as you can see from the above analysis, he is more often wrong than right with his predictions,” Noble wrote.

“But, the stock market rewards predictions disproportionately . Out of the 100 predictions you make, even if you get 99 wrong but get one extremely unlikely event right your overall returns will still be extremely high,” he added.

As for now, it remains to be seen whether Burry’s latest forecasts will come true. Some on Wall Street argue bubbles can take years to form and eventually pop, and it’s nearly impossible to pinpoint when the crash will occur.

Read the original article on Business Insider

Meme-stock momentum has withered after retail traders drove a 3-week rally in AMC, BlackBerry, and other Reddit favorites

AMC stock
Igor Golovniov/SOPA Images/LightRocket via Getty Images

  • Meme stocks are losing steam after a three-week rally that mirrored the frenzy of activity seen earlier this year.
  • Some of the most popular stocks have dropped 17% in the past week, Vanda Research said.
  • “Retail investors will rush to the exit unless there’s an immediate rally,” the analysts said.
  • See more stories on Insider’s business page.

Meme-stock momentum is fading after a three-week rally that mirrored the GameStop frenzy earlier this year.

The latest meme-stock bubble has lasted for three weeks, said Vanda Research senior strategist Ben Onatibia and analyst Giacomo Pierantoniwhich, which is about the same timeframe as earlier this year when an army of Reddit day traders poured into GameStop to push a short squeeze and drove other favorites higher as well.

Now, momentum for the basket of companies is “deteriorating,” as a basket of the most popular stocks has fallen 17% in the past week, the analysts said. On top of that, open interest for meme-stock call options has dropped in the past couple days as traders cash in before the expiration. And that’s likely to continue.

“Given the amount of risk embedded in these investments, we think retail investors will rush to the exit unless there’s an immediate rally,” the analysts said in the Wednesday note.

Vanda Research Meme Stock pullback
Source: Bloomberg, VandaTrack

AMC Entertainment led the latest round of meme-stock madness. After the company’s once-largest shareholder dumped almost all of its remaining shares, retail traders poured into the stock for weeks, driving it to all-time highs. Shares of the movie-theater chain are now trading around $60.

Other retail-trader favorites, like BlackBerry, GameStop, Clover Health, and Nokia, followed AMC’s footsteps amid the rally. Meanwhile, new names like Beyond Meat, Wendy’s, WorkHorse, ContextLogic, and Clean Energy Fuels, also joined the basket.

The trend of meme stocks began earlier this year with retail traders wanting to squeeze short-sellers on nostalgic stocks like GameStop and AMC Entertainment. But now, Vanda said, “squeezing highly shorted stocks is quickly falling out of fashion.”

The fizzling out of the meme-stock craze has coincided with a rally in cryptocurrencies. Matt Maley, chief market strategist for Miller Tabak + Co., told Insider previously that meme stocks in the past have taken off when cryptocurrencies have corrected, and vice versa. He said as the Federal Reserve considers pulling back on quantitative easing, there will be less liquidity in the markets.

Meme stocks and other “high-flying liquidity-fueled assets are going to have a tougher time rallying to the same degree that they once did,” he said.

Read the original article on Business Insider

New meme stock Corsair Gaming jumps 33% amid surging interest from Reddit traders

Reddit logo

A new meme stock is making the rounds on Wall Street Bets, surpassing mainstays such as GameStop and AMC Entertainment as the forums most-discussed company.

Shares of computer hardware company Corsair Gaming rose 33% on Monday to their highest since February this year, amid a surge in interest from Reddit traders.

In the past 24 hours, Corsair was the most mentioned stock on the 10-million member strong Wall Street Bets forum, garnering over 1,310 mentions, according to data from Quantitative Quiver. Clean Energy Fuels ranked as the second, followed by AMC.

One user on Monday claimed Corsair will “swallow the gaming industry and be a millionaire maker stock.”

The nearly 900-word post, which explained why the company is in a strong position to leverage demand in the gaming sector received nearly a thousand upvotes.

“Put this in your boomer dad’s portfolio (shares) and If you like gambling, buy some calls,” the post said.

Another post, which also received a thousand upvotes, detailed five stocks to watch out for this week, including Corsair. Others on the list are BlackBerry, Clean Energy, AMC, and GameStop.

Data from MarketBeat also show that 21.8% of Corsair’s shares are sold short, in contrast to Clean Energy’s 5.91%.

Meme stocks, an umbrella term describing a group of companies that have seen their stock surge since the GameStop craze in January, have been on the move again as of late. AMC shares surged at the end of May, while a new group of meme-stock names have been making the rounds on forums frequented by retail traders.

Read the original article on Business Insider

GameStop plunges 27% as company says it plans to sell up to 5 million shares and discloses SEC request for information on trading activity

GameStop store New York City January 2021.JPG
  • GameStop dropped 27% on Thursday on the company’s plans to sell additional shares and as the SEC looks into trading activity of its stock.
  • The video-game retailer, whose shares are part of a meme-stocks rally, said it will cooperate with the SEC’s inquiry.
  • The company could sell up to 5 million shares.
  • See more stories on Insider’s business page.

GameStop sank by nearly 30% on Thursday after the video game retailer said it may sell millions of shares and said the Securities and Exchange Commission has requested information as part of its investigation into the trading of its shares.

The company issued the updates late Wednesday alongside first-quarter financial results that beat Wall Street’s expectations.

Shares of GameStop on Thursday plunged 27% to finish at $229.39. The stock started falling in after-hours trade Wednesday as GameStop said it may sell up to an additional 5 million shares as part of a previous agreement with its sales agent, Jefferies. Investors are concerned about dilution, or that the value of shares already outstanding will decline. The sale of the shares would take place from time to time at or near market prices under the “at-the-money” agreement.

Another source of downward pressure was GameStop’s disclosure that SEC staff in late May requested the company voluntarily provide documents and other information as part of the regulator’s investigation into the trading activity of its securities and in the securities of other companies.

GameStop’s stock price has soared by more than 1,500% so far this year as part of a surge in so-called meme stocks — including AMC Entertainment, Bed Bath & Beyond, BlackBerry — that’s been driven by retail investors working together to force a short squeeze on hedge funds aiming to profit from bets that the companies’ share prices will fall.

“We are in the process of reviewing the request and producing the requested documents and intend to cooperate fully with the SEC Staff regarding this matter. This inquiry is not expected to adversely impact us,” GameStop said as part of its quarterly financial report.

GameStop late Wednesday said sales rose to $1.28 billion, higher than the $1.16 billion expected by four analysts in a FactSet poll. Its adjusted loss was $0.45 a share, narrower than its adjusted loss of $2.44 a share a year earlier and narrower than Wall Street’s forecast of a loss of $0.83 a share.

Read the original article on Business Insider