Retail Meme Mania Back in Stock Market, Will it Bring the Bulls Back in Crypto?
A Wells Fargo survey shows this speculative mania has also captured the interest of teenagers who are taking their financial lessons from social media. As for crypto, 50% of parents say their teen knows more about bitcoin than them.
This week, meme stocks are back in action.
It started with Dogecoin (DOGE) pumping after its addition to the leading cryptocurrency exchange in the US, Coinbase. DOGE -6.21% Dogecoin / USD DOGEUSD $ 0.21
-$0.01-6.21% Volume 2.22 b Change -$0.01 Open $0.21 Circulating 131.42 b Market Cap 27.34 b 1 d Google Searches for Bitcoin Hit Dec 2020 Level, Interest in NFTs Surpass DeFi Significantly and Matched Ethereum Briefly 1 d Lloyds to Auction off Vehicles from Mad Max FURY Road Film, Crypto Accepted 2 d AMC Theaters CEO Is Considering Adding Payment Support for DOGE By Year-End
But it was particularly seen in the stock market.
The price of AMC went on to hit a new all-time high of $72.50 on Wednesday. The retail mania for AMC Entertainment company stocks has been so strong that it saw $40 billion in volume on Wednesday, which is more than any other stock, including Tesla, and specifically more than Amazon (AMZN) has ever seen in its history.
As AMC shares popped, the company announced new perks for retail investors, including a free tub of popcorn.
The movie theater chain has launched a portal on its website for individual investors, which requires stockholders to self-identify and sign up for the chain’s loyalty program that contains special offers.
“This is exactly what is happening in digital assets.”
“To the uninformed, the growth looks like ‘hype,' but I think this is the future of capital markets – blurring the gap between customers, evangelists and investors.”
In the last five months, the stocks of AMC company that teetered on bankruptcy filing during the worst of the Covid crisis have soared over 1,400%.
AMC CEO Adam Aron praised the retail investors for their support. He delayed the company's annual shareholders meeting by more than a month to allow these investors to attend the event and “make their important voices heard.”
It wasn’t AMC alone; top volume gains in the traditional market have been mostly the meme stocks as investors bet on Blackberry (BB), Express (EXPR), Build-A-Bear Workshop (BBW), Koss Corporation (KOSS), and Nokia (NOK) as well.
At one point, AMC, BB, BBBY, and NOK have been accounting for 25% of the volume on the NYSE.
let… that… fucking…. sink…. in.
what a year to be alive
— AllDayFaders (@team3dstocks) June 2, 2021
Some expect this much speculation to have some bullish headwinds for crypto as well. The initial retail mania in AMC and GME stocks made their way into the cryptocurrency market in April and May, pushing the prices of altcoins to rip higher.
Since then, crypto prices have topped out, speculating to be the rotation of profits back into the stock market, resulting in a new rally. This means we can see the retail chasing the pumps in the crypto market soon as well.
It has been this speculative mania that has captured the interest of teenagers as well, according to a Wells Fargo survey of 13 to 17-year-old 318 teens and their (304) parents. This survey follows Fidelity Inestemnt’s launch of a commission-free brokerage account for 13- to 17-year-olds that allows stock trading on a mobile app.
A third of teens say they are learning financial lessons from the internet and social media, while almost half of them are more interested in investing, thanks to GameStop (GME).
As for cryptocurrency, 50% of parents say their teen knows more about bitcoin than them. However, while 58% of teen boys say they know more, only 33% of teen girls claimed to be more knowledgeable.