Some things are different this time. The biggest change from the initial supernova for GameStop's stock is how the experience of 2021 makes this all feel familiar. That familiarity, plus some changes in the market, should allow Wall Street to more easily digest the movements without danger to the overall system, experts say.
Big hedge funds and other professional investing firms are better equipped to handle the situation this time around, he said, and they could be riding the wave higher with small-time investors before trying to exit the trades before them, which could leave those smaller-pocketed investors holding the risk.
GameStop in March had roughly 305.9 million shares of its stock trading in the market, more than four times the number of shares it had in March 2021. Such growth “greatly increases the amount of activity needed to squeeze higher" for GameStop and other meme stocks, Battista said. “Can they move higher? Sure, but it’s going to be a tougher task this time around.”It's important to know the momentum can shift just as suddenly the other way.
The stock market is about to see a 10% correction, with further disinflation a 'pipe dream' and Fed rate cuts coming much later, Stifel says