Odd Lots Team on the Return of the Meme Trade

Summary

The transcript discusses the volatile nature of meme stocks, particularly GameStop, and compares it to a more traditional portfolio consisting of established brands like Lululemon, Anthropologie, and Starbucks. It touches on the cynical and manipulative aspects of the meme stock phenomenon, questioning the revolutionary narrative some investors use to justify their actions. The conversation also ponders the potential impact if the meme stock crowd turned their attention to commodities, hinting at the unpredictable and significant influence they could have on the market. The discussion also delves into the role of the SEC and whether intervention is warranted in the context of meme investing.

Takeaways

• 📊 The speaker mentions a blended moving average of GameStop stock, indicating an interest in technical analysis.
• 💸 There's a question about who lost money on GameStop, suggesting the stock has had significant price fluctuations.
• 🤔 A comparison is made between a 'meme stock portfolio' and a 'BECKY portfolio', highlighting different investment strategies post-Covid.
• 📉 The speaker reflects on the past performance of meme stocks and how the market has changed, indicating a shift in investor sentiment.
• 🎥 The conversation suggests that the meme stock phenomenon has become less novel and more cynical, with less illusion about its outcome.
• 🚫 The speaker expresses disdain for those who view buying stocks like GameStop as a revolutionary act, arguing it lacks substance.
• 🎰 A more charitable view of meme investing is presented as investing in businesses with personal or nostalgic value.
• 🚨 The uncharitable view is that meme investing could be seen as stock manipulation, hinting at potential regulatory concerns.
• 🤔 The speaker ponders what would happen if the meme stock crowd targeted commodities, speculating on market reactions.
• 📈 The speaker notes the significant dollar volume being traded in meme stocks, indicating their impact on the market.
• 🏒️ The transcript includes a discussion about a potential new coach for the Toronto Maple Leafs, showing a shift in topic to sports.

Q & A

What is a blended moving average and how does it relate to GameStop's stock performance?

A blended moving average is a technical analysis tool that combines different types of moving averages to smooth out price data and identify trends. In the context of GameStop, it is used to analyze the stock's performance over a specific period, showing how it moved from a high of 50 down to 22.

Who are the people that lost money on GameStop according to the transcript?

The transcript does not specifically identify who lost money on GameStop. However, it implies that those who invested in meme stocks like GameStop without understanding the risks may have experienced losses.

What is the difference between the meme stock portfolio and the BECKY portfolio as mentioned in the script?

The meme stock portfolio consists of stocks that have gained popularity through social media and online forums, often with speculative trading activity. The BECKY portfolio, on the other hand, is filled with established, mainstream stocks like Lululemon, Anthropologie, and Starbucks, which are considered more stable and less subject to the whims of social media hype.

How has the meme stock phenomenon evolved since the initial surge in popularity?

The meme stock phenomenon has become more cynical and less novel. People are more aware of the potential for stock manipulation and are less likely to be under the illusion that investing in meme stocks is a revolutionary act against the establishment.

What is the speaker's opinion on Gary Gensler's potential involvement in controlling the meme stock market?

The speaker does not offer direct advice to Gary Gensler but suggests that people should be able to do what they want with their money, including gambling on stocks. However, they express disdain for those who pretend that investing in meme stocks is a revolutionary act.

What is the most charitable interpretation of meme investing according to the speaker?

The most charitable interpretation of meme investing is treating the stock market like a crowdfunding platform for businesses that one has a personal connection with or nostalgia for, such as GameStop or AMC.

What is the speaker's view on the potential for meme investing in commodities?

The speaker wonders what would happen if the meme crowd turned their attention to commodities, causing significant price movements in items like corn, cocoa, copper, coffee, silver, or orange juice.

How does the speaker describe the current state of meme stocks and their trading volume?

The speaker notes that the amount of dollars being traded in meme stocks every day is significant and finds it wild that stocks like GameStop can quickly approach their previous highs.

What is the context behind the mention of Luke Iowa and the Toronto Maple Leafs coaching position?

Luke Iowa was shortlisted for the coaching position of the Toronto Maple Leafs when Sheldon Keefe left the team. However, the opportunity was cut off for him, and it is unclear what he will do next.

What is Sherwood Media and how is it related to the meme stock discussion?

Sherwood Media is described as the new Robinhood, which is an online platform for stock trading. It is mentioned in the context of the meme stock discussion as a place where the person they want to interview has moved to and is now writing about Wall Street.

What rumor is persistently associated with the person being interviewed in the transcript?

There is a persistent rumor that the person being interviewed is a secret Wall Street Bets moderator, which is a popular subreddit known for its role in the meme stock phenomenon.