Odd Lots This Is What Happened to the Meme Stock Mania
Apr 28, 2022
Lily Francus, director of quantitative research at Moody's Analytics, and Kyla Scanlon, a financial commentator and founder of a financial education company, delve into the meteoric rise and fall of meme stocks like GameStop and AMC. They discuss the surge of retail traders during the pandemic, the cultural implications of meme trading, and the disconnect between stock valuations and fundamentals. The conversation also covers the impact on new generations, the changing landscape of investing, and the evolving regulatory environment for retail investors.
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Meme Stock Value
- Meme stocks represent dissatisfaction with traditional institutions.
- This dissatisfaction explains the premium still reflected in stocks like AMC and GME.
Meme Stock Life Cycle
- Collective belief drives meme stock value, as seen with AMC, GME, and even Robinhood.
- When belief fades, stock prices decline, but humans often find new things to meme.
Political Manipulation
- Joe Weisenthal felt comfortable with speculation but was bothered by wealthy influencers.
- These influencers promoted buying AMC or GameStop as political acts.