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- Yahoo Finance Video
The meme stock crowd is expected to 'exit quickly': Expert
After re-energized enthusiasm in the meme stock trade this week, the hype seems to be fading as shares of video game retailer GameStop (GME) and movie theater chain AMC Entertainment (AMC) are sinking Wednesday morning. Financial Insyghts President Peter Atwater sits down with Morning Brief Anchors Seana Smith and Brad Smith to compare recent meme trading activity to that of the early 2021 frenzy "We should expect that as burst-filled as this last week has been, there should be a comparable bust coming in these names. The thing that distinguishes bubbles from from other kinds of behavioral patterns is that first step is the steepest," Atwater says. "So if this is an indicator of mood, we should expect these companies to leave via a high story window quite quickly." For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Luke Carberry Mogan.
- Yahoo Finance
Why the 2024 meme stock action is much tamer than 2021 — so far
The current 2024 meme stock moment feels like a callback from 2021's big retail saga that resulted in a movie. But despite some big pops in GameStop and AMC, this time has some key differences.
- Yahoo Finance Video
How institutional traders are getting in on meme stocks
Like it's 2021 all over again, meme stock trading has taken over Wall Street. While some have claimed there is very little rhyme or reason behind the momentum, it doesn't negate the sheer volume of trading from retail investors. All Star Charts Chief Options Strategist Sean McLaughlin joins Yahoo Finance to discuss the recent return to the meme stock craze and how investors should consider getting involved. McLaughlin comments on how institutional investors get involved in meme stock trading: "Especially in these meme stocks where you get a lot of retail interest and a lot of people chasing hot money returns, when you get players using call options, for example, to express their bullish bets, well, who's on the other side of those trades? That's generally market makers and dealers. They're shorting calls to sell them to the retail investor. Well, they're not in the business of taking directional risk. They want to be as delta neutral as they can. So as they're selling calls to the to the swelling demand out there, the only way they can hedge their position or the best and easiest and most efficient way for them to hedge their position is to buy stock." For more expert insight and the latest market action, click here to watch this full episode. This post was written by Nicholas Jacobino
