Chatter around meme stocks grows quiet as sector sees uncertain end to the weel
After a torrid two weeks of almost non-stop action, things went suddenly eerily quiet in the world of meme stocks on Friday.
As the major meme stocks are likely to end down for the week, the volume of mentions on social media of companies like
As the volatility in meme stocks volatility lives and dies by the popularity amongst retail traders on social media sites like Twitter, Discord and Reddit --as evidenced almost too perfectly by the rise and fall of Wendy's (https://www.marketwatch.com/story/wendys-stock-soars-on-summer-salads-chicken-tender-based-investment-theses-and-maybe-some-ticker-confusion-11623169699)(WEN) stock (https://www.marketwatch.com/story/wendys-stock-soars-on-summer-salads-chicken-tender-based-investment-theses-and-maybe-some-ticker-confusion-11623169699)in recent day-- the drop in mentions seems as much a causation as a correlation.
The news of the SEC's interest spread like wildfire on social media, as did late-breaking news Thursday that the hedge fund most-hated by retail traders, Melvin Capital, has continued to lose billions of dollars even after January's short squeeze dealt the fund a near fatal blow.
On Reddit, users riding out Thursday's rough trading indulged in some schadenfreude around Melvin Capital's pain, with many seeing the continuing bleeding as evidence supporting the popular social media theory that Melvin founder Gabriel Plotkin never covered his short positions on
Speaking of Citadel, another signal that social media mentions had turned from stocks to narrative was the sudden Twitter popularity of musical impresario Kenny G.
The alto saxophonist saw his name trend on Twitter as users, many of them retail traders backing
By midday Friday though, some meme stocks were back in the ascendancy, and so were their mentions on social media.
-Thornton McEnery; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
June 11, 2021 14:19 ET (18:19 GMT)
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