Close Menu
  • Homepage
  • Local News
  • India
  • World
  • Politics
  • Sports
  • Finance
  • Entertainment
  • Business
  • Technology
  • Health
  • Lifestyle
Facebook X (Twitter) Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA
Facebook X (Twitter) Instagram Pinterest
JHB NewsJHB News
  • Local
  • India
  • World
  • Politics
  • Sports
  • Finance
  • Entertainment
Let’s Fight Corruption
JHB NewsJHB News
Home»Finance»Meme stocks surge as tech rally gets too pricey for retail investors
Finance

Meme stocks surge as tech rally gets too pricey for retail investors

July 26, 2023No Comments3 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Meme stocks surge as tech rally gets too pricey for retail investors
Share
Facebook Twitter LinkedIn Pinterest Email

By Bansari Mayur Kamdar

(Reuters) – Meme shares have surged in the previous couple of weeks as retail traders shun pricier shares for cheaper speculative names, however some consultants fear that this might choke the present rally in broader markets.

At a time when the broader rally has made some shares, particularly within the tech house, too costly, the return of meme shares is providing retail traders a extra reasonably priced choice to take part in 2023’s market rebound and pocket large returns.

Roundhill’s Meme index hit a one-year excessive final week and was final up 60% for 2023 up to now, dwarfing good points of greater than 18% recorded by the benchmark S&P 500.

The NYSE FANG+ index , housing megacap expertise and development shares like Microsoft and Alphabet, has climbed 77% up to now this 12 months.

“A few of the retail animal spirits are coming again, nevertheless it’s somewhat bit extra advanced than the primary time round,” mentioned Thomas Hayes, managing member at Nice Hill Capital.

“There’s widespread panic-buying and catch-up commerce from those that danger going into the year-end flat whereas the S&P is up 18%.”

Retail traders poured in $1.27 billion per day on common into U.S. equities in July, closing in on the all-time document of $1.5 billion a day in March, Vanda Analysis mentioned.

“What we’ve got seen traditionally is that when brief squeezes are taking place in a few of these zombie-like firms which can be burning money or in actually crushed down names, that is often extra indicative of an indication of the top of the bull market versus starting,” mentioned Dennis Dick, market construction analyst at Triple D Buying and selling.

The meme index consists of 25 equal-weighted U.S.-listed shares with a mix of elevated social media exercise and excessive brief curiosity. It’s rebalanced each two weeks.

Latest examples of rallies embrace a 33% leap in shares of cinema operator AMC Leisure on Monday and a 40% rise in shares of troubled used-car retailer Carvana final Wednesday.

Internet retail investor flows into Carvana hit their highest in over a 12 months final week, earlier than sliding somewhat on profit-taking, in line with knowledge by Vanda Analysis, whereas flows into AMC touched 11-month highs on Monday.

Shares of Carvana, which can also be the highest holding of Roundhill’s meme index with a virtually 5% weighting, are up about 850% up to now this 12 months however are nonetheless removed from their all-time highs hit in the course of the meme inventory mania of 2021.

About 28.1% of AMC’s publicly accessible shares are beneath brief place, in line with knowledge by analytics agency Ortex, whereas 55.2% of Carvana’s free float shares are shorted.

(Reporting by Bansari Mayur Kamdar in Bengaluru; further reporting by Lance Tupper in New York; Enhancing by Devika Syamnath)

Source link

investors meme Pricey rally retail Stocks surge tech
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

US oil and gas rig count falls to lowest since January, Baker Hughes says

May 9, 2025

Clarium raises $27m funding to enhance AI-driven solutions for healthcare

May 9, 2025

Holiday Inn owner IHG confident US domestic demand will deliver profit growth (May 8)

May 9, 2025

Wall Street rises on hopes for trade deals that could forestall a recession

May 9, 2025
Add A Comment
Leave A Reply Cancel Reply

Editors Picks

US oil and gas rig count falls to lowest since January, Baker Hughes says

May 9, 2025

LeT’s Muridke camp targeted in Operation Sindoor also trained Bengaluru Indian Institute of Science attacker in 2002-03 | Bangalore News

May 9, 2025

‘Pahalgam avenged but what about Vadodara boat tragedy?’ Suspended BJP corporator says will continue fight for justice | India News

May 9, 2025

Could grounding improve your sleep?

May 9, 2025
Popular Post

1 Tech Stock With More Potential Than Any Cryptocurrency

China renews pledge for wider market access for foreign investors

Siddharth Vishwakarma among 6 Indians to qualify for main draw of Mysuru Open | Tennis News

Subscribe to Updates

Get the latest news from JHB News about Bangalore, Worlds, Entertainment and more.

JHB News
Facebook X (Twitter) Instagram Pinterest
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA
© 2025 Jhb.news - All rights reserved.

Type above and press Enter to search. Press Esc to cancel.