How do analysts think about meme stocks' rising activities?
In the news
Individual investors are dashing in and out of the so-called meme stocks again-- and other speculative securities -- and don't appear ready to let up.
The U.S. equity market saw a daily inflow over the past five trading days through Tuesday in line with the 2021 daily average at around $1.2 billion. A significant amount of capital was redirected into more speculative stocks.
Analysts' opinion
"We do not exclude seeing a continuation of trading activity into these names in the upcoming weeks should the overall market rally sustain. Younger and more aggressive investors" seek to recoup year-to-date losses. Those investors are now purchasing mainly speculative meme stocks.
Marco Iachini and Giacomo Pierantoni of Vanda Research wrote in a note
Marco Iachini and Giacomo Pierantoni of Vanda Research wrote in a note
The stocks' appeal -- and the trading volatility surrounding the memes -- is not over yet. Some of the favorite meme stocks, AMC and GameStop have long-term visions that include betting on gold mines and crypto.
according to Ed Moya, senior market strategist at Oanda.
according to Ed Moya, senior market strategist at Oanda.
Who knows how long these things will last as there's nothing normal about the moves. It could be days or weeks but unless something fundamentally improves for these companies, we all know how it ends. T here will need to be a fundamental shift in these companies before we see a lasting change.
Craig Erlam, market analyst at OANDA said
Craig Erlam, market analyst at OANDA said
The phenomenon tells investing professionals and regulators about the changing makeup of equity markets, namely that retail investors can move markets.
according to BNY Mellon, Peter Madigan
according to BNY Mellon, Peter Madigan
While I think this growth stock rally might have legs, what's happening with the Dirty Dozen is a classic 'dead-cat bounce'... so avoid these stocks at all costs, especially the three worst: DWAC, AMC, and GME. Meme stocks are simply experiencing a phenomenon known as a dead-cat bounce.
Whitney Tilson, former hedge fund manager and CEO of Empire Financial Research
Whitney Tilson, former hedge fund manager and CEO of Empire Financial Research
Further consideration
Analysts have also emphasized a big difference between now and when the meme-stock phenomenon started last year: Professional investors are more familiar withtrading and anticipating correlated moves in meme stocks, which might makes it harder to anticipate whether retail buying cansustaina medium-term rally against a "more prepared" professional crowd.
Source: Marketwatch, Bloomberg
Disclaimer: Past performance can't guarantee future results. Investing involves risk and the potential to lose principal. This article is for information and illustrative purposes only.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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How do analysts evaluate the market?
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senghui53 : Good
sloppydrunkmoo : afterhours trading is also killing me
Jimmy Zig : Professional investors are caught in a short position with your above named meme stocks and still have not covered. Through manipulation and shady trading tactics they seem to be able to avoid the inevitable. This ape is not leaving.