![]() Will the sector be the next beneficiary of a frantic, cash-rich market?īlackRock flexes its muscle at shareholder meetingsīlackRock, the biggest asset manager in the world, is increasingly willing to throw its weight behind votes on climate and diversity at shareholder meetings - though activists argue the company is still being too conservative. Watch this space: Vanda is keeping an eye on gaming stocks, noting a pickup in trading volume around popular video game platform Roblox. “But my guess is in the next few weeks you’ll see a proper rebound.” “Right now it’s just WallStreetBets targeting AMC,” Pierantoni said. ![]() He suspects some older retail investors are nervous about the future and opting to remain on the sidelines, referring to recent surveys from the American Association of Individual Investors.īut he thinks retail buying could pick up before long, as traders leave crypto and start searching for the The Next Big Thing. “The total net flows of retail investors overall - the figure is quite low,” Pierantoni said. Still, meme stock mania isn’t back in full force. Four months later, they appear to be taking a page out of the same playbook. Investors on Reddit’s WallStreetBets community used this method to pump up the price of GameStop shares earlier this year. This is what’s known as a “short squeeze.” But if the price jumps dramatically, these investors are forced to buy back in to limit their losses - further fueling a rally. Short sellers borrow shares of a stock and sell it, with the hope of buying it back at a lower price and pocketing the difference. Pierantoni observed that just as selling of bitcoin and ethereum picked up, retail purchases of AMC jumped - as did the number of people buying risky but bullish call options popular among Robinhood investors.ĪMC appears to be a solid target because it’s seen a recent rise in short interest, Pierantoni said. One reason: Speculative retail investors have been on the hunt for new places to park their money as some of the air gets let out of cryptocurrency trades. Analysts forecast that AMC’s revenues will nearly double in 20 as theaters reopen, but the company still expects to lose money this year and next. It’s true that social media users are exhibiting a lot of hype for AMC, and that their excitement once again seems divorced from the stock’s fundamentals. Perhaps not yet, Giacomo Pierantoni, a research analyst at Vanda Securities who tracks retail investment flows, told me.
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