Meme Stocks Slid in Morning Trading
Meme stocks slid in morning trading.
$Bed Bath & Beyond(BBBY)$ fell nearly 4%; AMC fell nearly 3%; BlackBerry fell over 2%.
Shares of firms such as $AMC(AMC)$, $GameStop(GME)$, and $Bed Bath & Beyond(BBBY)$ surged in January 2021 amid heavy interest from both short sellers betting against the stocks, and retail traders on social media sites such as Reddit and Twitter. After short bets blew up that month, Wall Street firms wary of another short squeeze began considering data on online ticker chatter.
Those stocks may be some of the most prominent meme stocks, but the universe of highly shorted stocks garnering heavy attention on social media sites is larger than that. Roundhill Investments has an exchange-traded fund—the Roundhill Meme exchange-traded fund (MEME)—which includes 25 stocks it says feature “elevated social media activity and high short interest.” That definition includes several high-profile growth stocks including electric-vehicle firms such as Tesla (TSLA), and software stocks such as $Snowflake (SNOW)$.
The MEME ETF is down 60% this year, and only four stocks out of its holdings are positive year to date. Interestingly, the ETF’s moves are mostly in step with the ARK Innovation ETF (ARKK), which may mean meme stocks are as out of favor among traders as high-growth technology stocks amid rising interest rates.
$(BBBY)$ $(AMC)$Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
👌