Bailey, you're back.
Roaring Kitty's back. But what?
What does that mean? I don't know.
It means that he's back to Twitter. He posted a video that actually had
clips of the movie Wolverine. He also posted a montage that had Ferris
Bueller on his day off. It's a lot of questions and it's
circulating Reddit, StockTwits Discord, you name it.
And investors are speculating that if Roaring Kitty's back on social media,
maybe that means he likes the stock again.
And maybe that's a reason people should buy the stock.
That's really the galaxy brain of the retail crowd at this point as it
relates to GameStop because yeah, just give us the context of where else this
has lit a fire, not only just GameStop, but crypto related to GameStop and also
just a heavily shorted names that are out there in the retail space.
Exactly.

Everything that moved back in 2021,
Koss, AMC, you name it. Beyond which bought the Bed, Bath and Beyond, ran
from the company after it went bankrupt, just rallying.
It's really just kind of like a question around what the next stock
could be, and it almost brings back the shades in the argument around, is this
retail traders or is this Wall Street, and are people speculating where they
can put money to work, and what actually is driving the rally?
Because when you look at what happened back in 2021, obviously the retail crowd
was part of it. Obviously, they were buying call
options. But there are a lot of questions around
who else was buying, because Wall Street doesn't really let other people make
money if they can get in on the train. Well, precisely.
So is this going to target short stocks and any particular hedge funds in
particular, as we saw back in 2021?

But also, do the retail crowd want to be
piling in using Robinhood once again? Because Robinhood came out sort of a foe
and a friend in this situation. And the whole debate around removing the
buy button is an area I don't want to get into.
But it does seem petty. But it does seem like we are still
seeing those animal spirits. And that's really one of the questions
is who is buying and who's selling? Because we saw GameStop up 68% in the
three weeks prior to the Roaring Kitty post.
We saw the busiest week from a volume perspective since April 2022.
So people were buying the stock. Out-of-the-money call options were
active in the two weeks leading up to today's rally.
So a lot of questions about what actually was going on.
Under the surface, I see similar. I see some animal spirits in you, in your
reporting and your grasp of the data. There are some animal spirits in other
names like Reddit is higher.

Robinhood app was higher.
I saw on Downdetector that E-Trade has been difficult for some users since the
Open. So take that information and just
explain the basics of the relationship of the trading in these names and what's
happening with meme stocks more broadly. So we're seeing really a push back into
a lot of those retail names, and that's new names like Trump Media and Reddit
and old names like AMC and Cos. But we are seeing a lot of these systems
being inundated with buy orders, and that really can put a strain on some of the
systems to try to pair up buyers and sellers.
And that's why you see a number of these trades kind of potentially fail to
deliver, and a number of other issues. This is not the short mania that it was
in 2021 when over 140% of GameStop was sold short; it's closer to 24%.
But this is creating a lot of issues for

the underlying systems that are trying
to match up these buy and sell orders. And that also with the volatility and
with some of the swings where people are trying to put in orders. That's why
we saw the stock halted eight times of volatility in the first hour because
there was so much of an order and an order backlog among these retail
platforms that don't have clients, that have clients that do not have access to
after hours or pre-market trading. So that also can create kind of this
bottleneck, if you will, of buy and sell orders.
In that first 60 minutes. Even the first 10 minutes of trading was
quite volatile and quite hectic.

GameStop Shares Soar as ‘Roaring Kitty’ Revitalizes Meme Mania

Welcome to the Bloomberg Technology YouTube channel. Subscribe for original series and mini-docs on game-changing technologies, profiles on innovators, live conversations with experts, and breaking technology news & analysis from Bloomberg TV.

GameStop Shares Soar as ‘Roaring Kitty’ Revitalizes Meme Mania

GameStop Shares Soar as ‘Roaring Kitty’ Revitalizes Meme Mania

스크립트