Weekly Buzz: All-time Highs for Indexes While Memes Give Up to Losses

mr_cashcow : Thanks again for the reward points

Influencer investors like Roaring Kitty aka Keith Gill can have both + & - effects on companies & retail investors

The + effects:
▲Increased visibility: Influencer investors can attract attention to lesser-known companies or stocks, potentially driving up interest and investment
▲Market momentum: Their enthusiasm and conviction can contribute to a stock's momentum, attracting more investors and raise the price
▲Accessible information: Influencers like Roaring Kitty share their research and analysis, making it easier for retail investors to access information and make informed decisions

The - effects:
▼Market volatility: Influencer investors can also contribute to market volatility, as their opinions and actions can lead to rapid price swings
▼Lack of diversification: Some influencers may focus on a single stock or sector, potentially leading retail investors to over-concentrate their portfolios
▼Unqualified advice: While influencers may have a large following, they may not always provide sound or qualified investment advice, potentially leading retail investors into risky decisions

The same goes for having large-pocketed investor bringing attention to the stock as a shareholder

Ultimately, it's essential for retail investors to DYOR/DD, set clear goals, and develop a diversified investment strategy, rather than solely relying on influencer investor's opinions

102362254 : Influencer investors like Roaring Kitty can positively impact both companies and retail investors. Their engagement encourages retail investors, increases stock visibility, and fosters community. Their ability to engage retail investors and draw attention to specific stocks can be beneficial. However, balancing short-term excitement with long-term fundamentals remains important.

puddy1 : Influencer investors like Roaring Kitty can benefit companies by increasing market visibility and potentially boosting stock prices, which can aid in capital raising and financial stability. However, this attention can also lead to significant stock price volatility and increased regulatory scrutiny, posing challenges for long-term planning and compliance.

For retail investors, influencers can provide valuable information and help democratize market participation, giving smaller investors collective power. Yet, there are risks of market manipulation and significant financial losses if investors follow influencers without conducting their own due diligence, making it essential to balance the potential benefits with these risks.

HuatLady : I think influencer like Roaring Kitty could benefit companies or retail investors, but I wouldn't be following their leads. Influencer investors may prioritise their personal gains over the company's  well-being.  Their actions could be driven by short-term gains rather than long-term values. Personally, I rather invest in solid stocks for the long haul, and not let myself be swayed or tricked . I prioritise strong fundamentals over hype.

HuatEver : Influencer investors like Roaring Kitty can sometimes help companies or retail investors, but it can be a double-edged sword too. Stocks promoted by influencers can experience extreme volatility due to speculative trading. Retail investors may be drawn in during peaks and suffer loses during downturns. Thus, retail investors should exercise due diligence and not solely rely on any influencers when making investments decisions.

JulW21 : Influencer like Roaring Kitty could benefit companies or retail investors, but with a cost. Everything has both sides. However, my personal opinion is high profit come with high risk. I wont know when is the lowest nor the highest so I would stick to blue chip stock so that I can sleep well at night.

ZnWC : The short answer is no because influencer investors will tell you only when they win big (huge profit) but stay mum when they lose money.

According to TD Direct Investing, the biggest risk with a meme stock is losing all of your money. Without solid fundamentals to back up the price increase - such as increasing revenues or profit growth - sustaining excitement for a company can be difficult after the initial wave of exuberance subsides. Stock prices of meme stocks tend to plummet as soon as sentiment turns.

According to Quartz, hedge funds are more prepared to handle meme stock-related volatility, having learned their lessons after 2021:

“Quant/hedge funds are much better equipped to handle these situations nowadays,” Iachini said. “If anything, we believe the chances that they participate along with retail in the squeeze but also lean against and then exit these trades ahead of retail traders are high.” Within just two days, short-sellers as a whole lost more than $2 billion. They recovered about half of that after the stock began to sink on Wednesday, data from S3 Partners shows.

My take is the biggest loser is the inexperienced retail investors who buy meme stocks due to greed also known as FOMO (fear of missing out). Very few will have a clear mind and discipline to trade within your means and investment goal (risk appetite). Due to social media pressure, they will not have the courage to admit losing money.

There's nothing wrong with a large-pocketed investor bringing attention to your stock as a shareholder. The responsibility is always on whether you have done you own due diligence (DYODD) when you buy the stock. There is no right or wrong in investing just consequences.

73841093 : Wow that nice

Spread Love N Joy 102362254 : What happened to junk stock GME after his last live stream….?