So, 'mentioned on Reddit' is like the new Strong Buy rating or old CNBC mention, when CNBC still moved stocks big time. I'm not sure how we keep 'the retail is moving these names' narrative though. Does retail have an influence in my view? Sure, but we all know despite there being a huge number of retail investors, the pool of money is still somewhat limited compared to institutional investors.
If retail were truly moving names in the fashion we're seeing, then one would expect to see some rotation out of former big runners and challenges moving names that are diluting the market with offerings, but we aren't seeing that. GameStop (GME) remains near $300. AMC Entertainment (AMC) has hit the market with offering and insider sells yet continues to trade in the mid $50s. If it were just those two then fine, but Blackberry (BB) is in the mix along with Bed Bath & Beyond (BBBY) and both those names remain close to spike highs. Vinco Ventures (BBIG) has nearly doubled in a week. (Side note: what's with the BB theme?)
Based on today's open, Clover Health (CLOV) will have doubled in less than four total trading days. Koss (KOSS) is back in the mix and insiders continue to dump the stock on every single spike, but the growing float and lack of fundamentals doesn't matter. There are a handful of former SPACs we can add here that have gone nuts. And this list goes on from here.
This isn't anything against the Apes. There's influence there for sure, but for the media to act like institutions aren't playing the game right now is downright disingenuous. In many cases, big money is leading the surge. I'm certain some institutions have plants on Reddit and in discords doing their best to sway the masses toward one meme stock or another.
So, enjoy the trading opportunities, guard your capital, and mark a spot in your memory bank for this historical action, but also know that these crazy stock moves aren't "sticking it to the man" any longer. Smart money knows the game by now. Just don't let them be less patient and greedy than yourself.
