Odd Lots Lots More With Luke Kawa on Memestock Mania 2.0
6 snips
May 24, 2024 
In this engaging discussion, Luke Kawa, former Bloomberg News markets editor and expert on WallStreetBets, breaks down the recent surge in GameStop's stock driven by social media buzz. He compares this wave of meme stock mania to the frenzy of 2021, exploring the power of retail investors and the impact of key influencers like Roaring Kitty. Kawa also dives into how the narrative around speculative trading is evolving, linking meme stocks with trends in crypto and sports betting. Get insights into the shifting dynamics of the market!
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Unpriced Risk
- The market didn't price in the possibility of Roaring Kitty's return to Twitter.
- This challenges the efficient market hypothesis, suggesting some events are unpredictable.
Microsoft Meme
- Luke Kawa noticed unusual call activity and pre-market buying in Microsoft, initiated by WallStreetBets.
- This demonstrated the power of coordinated retail buying, impacting even large-cap stocks.
Market Mechanics
- Coordinated option buying can force market makers to hedge by buying the underlying stock.
- This creates a self-reinforcing cycle, pushing the stock price up, a 'perpetual motion machine'.