Black Friday saw the worst day for US stocks this year with all three major indices in deep red, but meme stock investors saw a bad day for everyone else.
While the Dow Jones Industrial Average (DJIA),
s&p 500 spx,
and Nasdaq comp,
After the Thanksgiving holiday got all tough on a mercifully short trading day, many memes on social media. Stock trading apps used Down Day to reinforce their commitment to the tickers they love most. .
Black Friday has historically been a strong day for retail and entertainment stocks, but both popular meme stocks — videogame retailer GameStop GME,
and theater chain AMC Entertainment AMC,
– closed the day quite hard, falling 5.4% and 3.2% respectively.
Those losses coincided with the broad market panic prompted by news of the new Omicron coronavirus scare, but you would have been hard-pressed to find genuine concern about share prices on the diehard app corners of Reddit and Twitter TWTR. ,
“Sh! t. . . The virus is back. . . I’d better sell my GME!!!” Joked Reddit user Nazereth_99. “No!!!!!” And added an obscene nod to Citadel founder Ken Griffin, who is widely seen as the persona of investors’ short GameStop stock.
This theory was widespread, even though trading volume at GameStop was less than half its daily average.
“Market crash you say?
“Same! I see red? I buy. I see green? I buy,” replied user GL_Levity. “Then I toss the shares in my ass so no one can get them.”
On Twitter, some saw the sudden panic as an opportunity to derail meme stocks and give Gamestop a fresh edge.
For AMC Apps, the pullback was less sharp, but volume on the stock was even lower, prompting some Redditors to look for meaning in the red results.
“This huge 4am Black Friday ‘sale’ is on our side, here’s why,” said user billy-bigballox.
“The massive movement we’re seeing right now is probably liquidating the ‘mem’ stocks they long for to raise their capital,” he said. “There is also the possibility that they are doubling down and increasing their short positions. Anyhow, have the shorts closed their positions? If the answer is no, I have an opportunity to add to my portfolio at a discount.” Nothing has changed except for one more chance.”
Due to the shorter trading day, and the fact that many retail investors are now trading options on their meme trades, it’s hard not to believe that the market digests the dangers of the Omicron version and these two names came out on Monday. Coming back.
After all, as one Redditor responded to a post on markets panicking about the new COVID threat—and revealing the broader economy’s now opioid-level addiction to cheap money—”No man. The Fed is calling it non-existent.” Will pump back with existing money.”