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Fourth scrutiny of the stimulus proposed by 60 lawmakers in Congress


As Meme Stock Mania Fizzles, Wall Street sees “Big Reckoning”

(Bloomberg) – Reddit’s daily trading has turned the first quarter of 2021 into one of the wildest periods of stock market mania in modern history. The books – in the plural – will no doubt be devoted to the subject in the years to come, but after these little speculators banded together to make dozens of obscure stocks with hundreds or even thousands of percent ̵

1; and in the process burned several hedge fund barons betting on drop – the movement seems to fall apart. The index, which tracks 37 of the most popular memes – 37 of the 50 that Robinhood Markets banned from trading during the peak of the craze – is essentially unchanged in the last two months, after jumping nearly 150% in January. Veterans of Wall Street and they will tell you that this flat cladding is the beginning of what will be a relentless downward movement in these stocks. It’s not so much about the bad foundations of companies. At least not in the short term. Daily trading zealots have shown a surprising ability to ignore these facts. Moreover, as the pandemic slowly wears off and the economy begins to open up, many will leave their homes and begin returning to offices and out restaurants and traveling near and far. And as they do so, they may stop becoming obsessed with their Robinhood accounts. Their other collective fluctuations in the meme fund universe will weaken. “People will do other things,” said Matt Mailey, chief market strategist at Miller Tabak + Co. At some point, there will be “great reliance,” he said. “I have no argument in my mind.” Of course, a set of Wall Street, generally speaking, misread the Reddit crowd for weeks earlier this quarter, and their analysis may be wrong again. However, preliminary data show that they are right. Recent reports suggest that vaccinated Americans are planning long-awaited vacations with searches for “Google flights,” peaking in popularity this week, according to a Google Trends tracker. The opposite is true for terms such as “stock trading” and “investment”, which have declined, according to Google Trends. “The impact of the incentive check on retail is diminishing,” said Edward Moya, senior market analyst at Oanda. “Many Americans seek to attend sporting events, travel around the country, relax, visit family and friends, and update their wardrobes before going out to restaurants, pubs, and back to the office.” Gamestop JuggernautVideo retail GameStop Corp. became a child on the poster for retailers who want to rage against the elite of hedge funds. The American trains with 2.460% trains, along with other favorites advertised by Reddit’s WallStreetBets, caused as much pain as joy. Stock growth of more than 900% this year caught the attention of Wall Street analysts who follow him. The average price value for 12 months assumes that the shares will lose more than three quarters of their value from current levels. Only Jefferies held a price target close to $ 191.45 on Thursday, and that call came with a warning that the stock was “subject to instability outside the fundamentals.” But any sense of GameStop basics trading has been ignored, as it first captivated Wall Street and Reddit users in the back half of January. The Bulls are more than happy to advertise their bets on forums as a move to stick it to short sellers as they buy for the company’s rebirth, provided by activist investor Ryan Cohen. Giving the position to AMC Entertainment Holdings Inc. As a movie theater, many Americans went for a moment, not surprisingly why Reddit users turned to the company’s assistant. #SaveAMC has taken hold on Twitter, and amateur investors seemed more than happy to fight Wall Street skeptics, even though most theaters were closed due to the ongoing pandemic. The chain’s latest rally came amid plans to continue opening cinemas, but Wall Street is skeptical. None of the nine analysts tracking the company estimated the purchase, and the average price suggested that the shares would lose 63% of their value next year. The euphoria of retail has spilled over to a wider range of securities from cult favorites such as Bitcoin, Tesla and the ARK Innovation ETF for smaller companies such as clothing retailer Express Inc. Chinese technology company The9 Limited is among the best performers in the group this year with an 860% jump. The company’s rally has been fueled by recent steps to drive the bitcoin wave, along with peers such as Future FinTech Group Inc. and Ault Global Holdings Inc. Zomedica Corp., a small-cap animal health company, has become a cult favorite among retail investors. , pursuing stocks with low stock prices. The Michigan-based company, Ann Arbor, started the year worth less than a quarter, but rose to $ 2.91. The company’s trading volume accelerated this year with an average of 174 million shares changing hands per session, more than four times the average in 2020. Mention by Carol Baskin of Tiger King helped it go viral in mid-January. For more articles like this, please visit us at bloomberg.com Subscribe now to stay ahead with the most trusted source of business news. © 2021 Bloomberg LP

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