Roaring Kitty, a prominent figure in the 2021 meme stock phenomenon, returned to the social media platform X (formerly Twitter) and sparked a rally in notable meme shares in Monday’s trading session. With a single post on X, shares such as GameStop (GME), AMC Entertainment (AMC), and BlackBerry (BB) experienced significant gains. To provide insights into this resurgence of the meme trade, tastylive Founder and top executive Tom Sosnoff joins sector Domination.
Sosnoff acknowledges that after a relatively slow period in the sector (^DJI, ^IXIC, ^GSPC) over the past few weeks, this meme stock rally “was really welcomed” as “another level of excitement.” However, he notes that while these meme shares are experiencing significant upsides, he does not view the current situation as comparable to the surge that occurred in 2021, which he describes as “a transformational moment.”
Addressing the potential investors behind the buying frenzy, Sosnoff told Yahoo money management: “What happens when you have a move like what you’re seeing today is that a lot of the high-frequency firms, after they learned their lessons in 2021, they tried to get ahead of it. So, a lot of the volume is high-frequency firms and sector-making firms that know that there’s going to be customers coming in on the buy side, so they’re just trying to get in front of it so they have some inventory to lay out.”
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