Remember the dizzying heights GameStop reached thanks to an army of Reddit traders led by the mysterious Keith Gill? Well, Keith, also known as Roaring Kitty, has resurfaced, hinting at another big move in GameStop shares.
This time around, he’s flashed a screenshot that could be showing a hefty stash of GameStop shares and some juicy call options. The internet and the stock’s price are buzzing —GameStop shares leapt by 19% in just one evening on Robinhood’s round-the-clock trading platform.
But are investments driven by memes and online hype a smart move? To help you figure that out, we’ve collated the views of five investment experts about meme stocks like GameStop, and AMC, and the ever-popular meme cryptocurrencies like Dogecoin and Shiba Inu. Here's what they had to say.
Steve Sosnick, Interactive Brokers Market Strategist
![Sosnick hints that someone might be playing the market too well without breaking any rules. Image: Shutterstock/ Michael Vi](https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/03032536/meme-stocks-as-investments-1024x575.jpg)
Steve Sosnick throws a bit of shade on the recent meme stock frenzy. He notes that GameStop saw a suspicious spike in trading of deep out-of-the-money call options just as Keith Gill, aka “Roaring Kitty,” popped back on social media. “These options are normally active, but there were notable increases in the volumes and open interest of upside call options expiring this Friday over recent sessions,” he explains. Sosnick compares this run with past spikes in stocks like Bed Bath & Beyond, hinting that someone might be playing the market too well without breaking any rules.
Jaspreet Singh, CEO of Briefs Media
![Jaspreet Singh isn't boarding the meme stock hype train either. Image: Shutterstock/ Hansonl](https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/03032749/gamestop-meme-stock-1024x575.jpg)
Jaspreet Singh isn't boarding this hype train either. In his recent YouTube advice, he suggests sticking to your guns and investing for the long term. "I want you to build long-term wealth because that's how you become actually wealthy, that's the proven way that most people will become wealthy in this country — it's by investing your money for the long term. It's not the most attractive thing to do, and not the most appealing thing to do — especially when you have these huge rallies and these meme stocks," he cautions his viewers.
Stoy Hall, CFP, Founder, and CEO of Black Mammoth
![Stoy Hall warns about the danger of buying in during a peak. Image: Shutterstock/ rafapress](https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/03032908/AMC-meme-stock-2-1024x575.jpg)
Echoing Singh's sentiment, Stoy Hall warns about the danger of buying in during a peak. "Meme stocks or any stock that has a major run on it, is not the time for FOMO to kick in," he explains. Hall emphasizes that this isn’t just a meme stock issue but a common trap in volatile stock movements.
Peter C. Earle, Senior Economist, American Institute for Economic Research
![Peter C. Earle points out that meme stocks typically attract short-term traders targeting less popular. Image: Shutterstock/ Ian Dewar Photography](https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/03033009/AMC-meme-stock-1024x575.jpg)
Peter C. Earle offers a more analytical view. He points out that meme stocks typically attract short-term traders targeting less popular, low-liquidity stocks. "Unless one were to have a very, and I mean very, strong opinion about one of those stocks accompanied by a long-term investment horizon, I think they're mostly to be avoided," he advises, noting the fundamental risks these companies carry.
Ki Young, CEO of CryptoQuant
![Ki Young has his concerns about meme coins like Dogecoin and Shiba Inu. Image: Shutterstock/ Elpisterra](https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/03033059/Doge-and-Shib-meme-coins-1024x575.jpg)
Switching gears to the crypto world, Ki Young has concerns about meme coins like Dogecoin and Shiba Inu. "Meme coins are harming the crypto industry. It's frustrating to see billion-dollar meme coins overshadowing hardworking teams developing legitimate products to advance the sector. Easy money, as shown by the 2018 ICO boom, cannot lead to progress across the industry," he states. Ki Young recalls the 2018 ICO craze, highlighting that such easy-money schemes often fail to deliver real progress or value.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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