Last week I wrote about this correction/bear market being the end of FOMO.
Over the weekend crypto crashed and I imagine 100’s of thousands of leveraged crypto accounts were wiped out.
Yesterday, Matt Levine at Bloomberg wrote ‘Maybe The Memes Are Over?‘
The gist:
This week is the one-year anniversary of the GameStop thing. From Monday, Jan. 25, 2021, through Friday, Jan. 29, 2021, GameStop Corp.’s stock traded as low as $61.13 per share and as high as $483; it ended the week at $197.44, up 204% from the previous week’s close. Trading in the stock was halted for volatility 37 times during that week, plus Robinhood Markets Inc. and some other brokers briefly restricted customers from buying it due to clearinghouse margin troubles. By mid-February there were at least seven movies and television shows about GameStop in the works. Everyone’s brain broke that week and stayed broken. More meme stocks followed. Elon Musk made Dogecoin into a meme. Donald Trump did a meme stock. Everything was like this. It was the year of the meme stock. That is, 2021 was the year of the meme stock. “I will see you back here in 2022,” I wrote, in my last column of 2021, “when everything will be absolutely normal.”
Matt is not sure that the era of ‘meme stocks’ is over and I definitely do not think it is over.
I do think the definition of a ‘meme stock’ will change.
Right now both $AMC abd $GME, while down 80 percent from their highs are still well above the prices when ‘meme stock’ fever took hold.
I have a lot riding on ‘meme stocks’ with a documentary I executive produced titled ‘The Meme Economy’ due to ship in a few months.
I started Stocktwits back in 2008 and have been watching the streams through bull and bear markets and no doubt the ‘meme stock’ and ‘SPAC’ streams have been the wildest of all the streams I have monitored in the 13 years of watching over Stocktwits. I am scared to look at or read the Trumpf $DWAC ticker stream for fear of going blind. I kid the traitors…I mean lovely community members who equate the ticker with a better America.
Memes are sentiment and sentiment can drive stock prices. The $DWAC SPAC is the best performing SPAC at the moment.
Because I believe that ‘meme stocks’ are her to stay and ‘The Meme Economy’ is real, I am hoping/imagining an era where memes are used to better express fundamentals and technicals, not just feelings and opinions.