One other day, one other spherical of features for Reddit shares GameStop (NYSE:GME), AMC Leisure (NYSE:AMC), BlackBerry (NYSE:BB) and Nokia (NYSE:BB). This time, there doesn’t seem like any company-specific information. With that in thoughts, what do it is advisable to find out about GME, BB, NOK and AMC inventory proper now?
As a reminder, Reddit shares have been on the transfer since final week, following information that GameStop CFO Jim Bell would resign on the finish of March. Traders are hopeful that activist investor and board member Ryan Cohen can flex some muscle tissues with the brand new CFO. If Cohen can herald somebody with expertise in e-commerce or tech, GameStop may turnaround. Think about ongoing short-squeeze enthusiasm and the facility of r/WallStreetBets, and you’ve got a recipe for a rally.
This week, that power continues on. BlackBerry, Nokia and AMC every gained on Monday. GameStop was an actual winner, with shares closing larger by greater than 18%.
At this level, there may be not a lot else particular transferring Reddit shares. Redditors preserve supporting the shares, encouraging one another to buy extra and to maintain holding. Some are hoping for GME stock to retouch $500, and even hit $800.
Nonetheless, there may be one key factor for traders to observe…
Reddit Shares Meet Congress, Take Two
President Joe Biden picked Gary Gensler to move up the U.S. Securities and Alternate Fee, and Rohit Chopra to steer up the Client Monetary Safety Bureau. Tomorrow, Gensler and Chopra should go earlier than the Senate Committee on Banking, Housing and City Affairs. There, they are going to give perception into a brand new period of market oversight. They will even have a tricky activity of answering Congressional questions on everything from income inequality to cryptocurrencies.
One subject on the agenda is GameStop, and extra broadly, the rise of meme shares. What’s going to Gensler and Chopra need to say concerning the frenzy? And maybe most significantly, what’s going to they argue concerning the function of social media? With the SEC already paying close attention to the use of social media in share value manipulation, their interpretation of what occurs on r/WallStreetBets is essential. Plus, as Bloomberg reported, Gensler and Chopra will speak about protections for unsophisticated retail traders and fee for order circulate. Each of these themes have taken up fairly a little bit of actual property on Wall Avenue currently.
Hold a detailed eye on Reddit shares. The rocket trip has not ended but.
On the date of publication, Sarah Smith didn’t have (both instantly or not directly) any positions within the securities talked about on this article.
Sarah Smith is a Net Content material Producer with InvestorPlace.com.