This whole meme stock movement thst started out with gamestop, have a lot more
significance than just the surface level monetary gains
Right now in the current uncertain market environment in 2022 with stock
selling off high inflation and rising interest rates
I cannot be the only retail trader and investor thinking man can we just bring
back all the hype we had in 2021 it's difficult not to reminisce about all the
crazy momentum runs like gamestop amc and many many other retail favorites i
have never been so excited to wake up at 4 00 am pacific time every single
morning and run straight to my computer to get the ball rolling so i must say
here make meme stocks great again while the retail hype seems to have died
down significantly in 2022 let's not forget the impact the stocks
at gamestop and amc have a hat on the entire stock market and on many retail
investors bank accounts in this video we are taking a leisurely walk down the
memory lane and taking a look at the aftermath of the wall street bets
movement and how meme stocks have forever changed the stock market as
somebody who's been day trading for more than seven years now i can tell you this
while history doesn't repeat itself exactly the same it often rhymes so the
next time around another stock might get hype comes around you can be even more
prepared to profit and be prepared to smash the like button to make the stock
market great again i really appreciate all of your support
and it definitely helps a lot with this channel and sponsoring all the bad jokes
to start discussing this topic we must first understand what exactly is a meme
stock well we know the word meme to mean
something funny on the internet it originally came as a term used in
evolutionary biology science who would have guessed
in short richard dawkins in 1976 in talking about how people pass on their
genes needed a word to describe not passing on genetic material but instead
passing on an idea he was going to use the greek word for imitation called my
meme but he wanted something shorter that reminded people of the word gene so
he decided putting on the two words together to become mean
now in modern day most of us know the word meme known as something funny
humorous or video that was found on the internet usually some on social media
like facebook twitter and what all the cool kids are using nowadays tick tock
by the way please make sure to follow me on tech talk if you haven't done that
already i just started posting a lot more videos there and that's how we
ended up here with meme stocks a meme stock refers to shares of a company that
have gained the code like following online and through social media
platforms in this case specifically on reddit wall street beds people on the
washi bed subreddit started out treating them as jokes and put money into these
stocks or shall we call them stunks for fun and that's exactly what these og
meme stocks like gamestop and amc were they were for fancy cakes however these
meme stocks gained a huge following because they were essentially imitations
or copies of what you would spend your money on in real life for example
shopping and spending time at gamestop was nostalgic for many of the 80s and
90s kids one over here with their pokemons nintendos and video game
tradings and much like how we find memes to be funny a lot of people put their
money invested in these stocks for fancy cakes but little did they know these
stonks were about to change the stock market and pretty much change the world
in mid-2020 the youtuber persona keith gill aka
roaring kitty aka deep effing value on reddit posted a research on wall street
beds and subsequently a viral video showing how he thinks gamestop could
potentially increase from five dollars to 50 dollars a share he explained that
the stock had some of the highest short interest on wall street meaning that it
was a stock with a lot of major hedge funds short selling it to the ground and
milking every single cent out of this declining stock because they knew just
like everyone else the gamestop was a dying company quick reminder for those
who are not familiar with short selling when you shoot a stock you are betting
that the stock prices are going to go lower because of the underlying
company's business is failing essentially you are betting against the
stock which is the reason big hedge fund specifically melvin capital was short
selling gamestop because the companies still operated as a brick and mortar
business in an age where internet-based shopping dominates the world deep effing
value went on to describe a short squeeze scenario where all the hedge
funds with the short positions on gamestop will need to cover their short
positions if a short squeeze does occur which will mean their buying to cover
will cause a massive rally in stock prices for many months no one took dfv's
research on gamestop that seriously because come on who goes to the store to
buy video games anymore everyone expected gamestop to head to the
cemetery just like blockbuster and that's what gamestop looked like in
2020 however as the gamestop stock price slowly crept up from 4 dollars to 10 and
setting higher lows near the end of 2020 as the stock had gained more and more
following and washi bets remember many people started out thinking about this
thesis and this stock as a joke but the prices don't lie
more and more retail investors are drawn into this meme stock and guess what this
meme was turning into a reality in january of 2021 the short squeeze that
deep fm value said could happen actually happened gamestop shares
erupted to nearly 500 a share amidst the frenzy of hedge funds covering their
short positions and formal buyers buying the breakout straight to the moon what
happened immediately during and after the gamestop short squeeze was some of
the wildest times i've ever seen in a stock market and i've seen a lot over
the last seven years with all the crazy short squeezes as you can see it's not
an exaggeration to say these og meme stocks like gme change the stock market
it also woke up many subsequent runs in other meme stocks like amc bbby and ok
and the list just goes on and on while not every retail investor made money
because as we all know many are still holding on to these meme stocks as they
slowly declined at the end of 2021 and now 2022 and i personally know many
people who are still holding on my ex-husband mike bagholder will be one of
those people however this whole meme stock movement started out with gamestop
have a lot more significance than just the surface level monetary gains there's
always been this division in the stock market between the big dogs and the
retail investors the big dogs are the hedge funds and the market makers that
have billions of dollars they have so much power on wall street that they
could manipulate the market and make it do whatever they wanted to do with a
naked short selling the activists investing coordinating prs and the list
just goes on and on because they have the monopoly or close to in a stock
market the retail investors are like you and me
we don't work on wall street in some high-rise offices for some fancy
financial firms we are at home trying to carve out a life for ourselves and most
of us study invest in trade in a stock market part-time and often we are
subject to market manipulation and lost some of our money when the big dogs
bully their way around we are often known as the chumps in the room with
this meme stock movement so began this kind of david and goliath story the
subreddit wall street bet rallied the little guys across the globe and wanted
to stick it to the big dogs the goliaths in the stock market and none of the big
dogs thought this was going to work nobody took retail investing and trading
seriously until after the game stopped short squeeze even citron research often
known for the profits like bearish predictions in the stock market quickly
dismissed this movement and called these little guys the suckers at this poker
game instead what happened is that gamestop started surging as a little
guys the retail investors started to pile on shares of gme in an attempt to
make the hedge funds cover their short position these retail investors and
traders they were doubling quadrupling their positions by the day enchanting
diamond hands and making it rain attendees
man they make my reigning lamborghini jokes shy in comparison i gotta give it
to these people i'll pick fried chicken over my imaginary lambos any day what
transpired really changed the stock market forever and here is the aftermath
of the retail movement well citron research the short-selling oracle of
wall street shut down its short-selling publications online as a result of the
aggregated losses from gamestop short melvin capital one of the most elite
hedge funds had to be bailed out by two other firms however i know what the real
million dollar question is here have retail traders taken over wall street
unfortunately no far from it the big dogs they'll sit in the doghouse high up
there on wall street but what did happen is that wall street learned it could no
longer afford to dismiss retail traders and investors as the buzzing fly in the
room they should learn some expensive lessons and there is strength in numbers
and persistence the original washi bed subreddit had more than quadrupled in
size from less than 2 million prior to 2020 to over 11 million now retail
traders and investors have forever solidified their place on wall street
and are now recognized as a force to be reckoned with as for the meme stocks
where are they now one year later well sadly they are in the toilet where
most of their fundamentals truly belong but many stock prices are still a lot
higher than they were before the movement thanks to the diamond hand
investors even though gamestop stock price had dropped quite far from 500
it's still 900 percentage points higher than before its rally
as for amc it had a high of 75 and it's now settling down around 15
as we speak which is still over 500 percent since the beginning of 2021.
most people saw this time period as a revolution and that's exactly what it
was a movement a statement that retail will not be ignored anymore however this
movement should not be taken as good financial advice let's keep in mind that
gamestop and amc rallies was just part of a movement and diamond handing is not
real trading nor investing while the hoping and holding strategy
worked for a short period of time it's not a repeatable strategy day after day
and year after year for professional traders if you would like to see these
momentum stocks make a comeback in 2022 remember to smash the like button to
make these meme stocks great again hopefully you really enjoyed this brief
summary of the wall street bets movement and the aftermath one year later thank
you guys so much for watching as always i'm the humble trader and i'll see you
guys next time
[Music] [Applause]
[Music] you