GameStop’s stock momentum continues to cool as bullish trader and influencer Roaring Kitty (aka Keith Gill) remains silent over the past week-plus – and now one seasoned trader is calling out Gill and other meme stock proponents for for fueling what he considers to be unhealthy behavior.
Veteran New York Stock Exchange trader Peter Tuchman – a notable figure nicknamed “the Einstein of Wall Street” due to his appearance – issued a stark warning this week regarding the ongoing GameStop trading phenomenon.
In a interview on Yahoo financeDuring the opening offering Wednesday, Tuchman was asked about the impact of Roaring Kitty and, in response, expressed deep concern about the impact of social media on business decisions.
“Social media has created this platform of envy, jealousy, need and greed. That’s the bottom line,” Tuchman said.
He then criticized the glorification of quick wins, saying: “If they see someone lying on the back of a Bugatti with a stack of ten grand, and they tell them they bought GameStop at 2 $ and sold it for $400, which it didn’t. are true – they will still try to do it. »
Granted, Roaring Kitty’s approach to social media was more about sharing pictures of cats on her live streams, talking about chicken tenders, and sharing memes from obscure movies that may or may not have hidden symbolism. But some of Gill’s contemporaries aligned themselves more closely with Tuchman’s view on the matter.
Tuchman’s warnings come as GameStop shares continue to experience volatility.
GME stock ended the trading day at $24.20, down nearly 3% on the day, reflecting continued turbulence in the stock’s performance. On Tuesday, GameStop’s stock price fell enough to completely erase the prior month’s gains, although it rose enough to put that mark back in the green as of this writing, but by less than 2% as of during this period.
The veteran trader expressed concern for younger investors, many of whom he said are holding GameStop shares from their previous peak during the 2021 meme stock craze.
“We’re at the crossroads of so many young investors and traders coming to me who are still long GameStop from $480 since the first debacle, and now they’re going back to the well to get themselves into trouble again,” he said. explained Tuchman. .
He further warned of widespread losses among retail traders.
“I know for a fact that 90% of the people who play in this pond lose money and blow up their trading accounts,” Tuchman said.
Despite being down 52% from its June 6 high of $66, the stock continues to attract traders’ attention. However, with Roaring Kitty’s tweets, posts, and live streams declining, the video game retailer’s stock price has steadily declined in recent years. days.
Tuchman’s warnings highlight the ongoing debate over the role of social media influencers in stock trading, as well as the unpredictable nature of meme stocks (much like meme cryptocurrencies). While figures like Roaring Kitty have gained popularity, Tuchman believes their influence may be waning.
“I think we noticed that this time,” Tuchman noted, “he didn’t stay in the forefront very long.”
Edited by Andrew Hayward
News Source : decrypt.co
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