As major memes stocks are likely to end lower for the week, the volume of social media mentions from companies like GameStop GME,
AMC Entertainment AMC,
et MicroVision MVIS,
echoed their performance with a net social interest in the group down 45% on Thursday from the previous week, according to data from HypeEquity.
stock in recent days – the drop in mentions seems as much a causation as a correlation.
GameStop’s earnings report on Wednesday seriously compromised what had been a sharp rise in memes in June, with the company posting strong results that easily beat Wall Street estimates, but also revealing that the memes share phenomenon has attracted the active attention of securities. and the Exchange Commission, which requested documents from GameStop and others to gain insight into what caused the unprecedented contraction of some stocks in January and persisted into June.
News of the SEC’s interest spread like wildfire on social media, as did breaking news on Thursday that the most hated hedge fund by retail traders, Melvin Capital, continued. losing billions of dollars even after the short squeeze in January dealt the fund with a near-fatal blow.
On Reddit, users who took part in Thursday’s tough exchanges indulged in some schadenfreude around Melvin Capital’s pain, with many seeing the continued bleeding as evidence supporting popular social media theory that Melvin’s founder, Gabriel Plotkin, never hedged his short positions on GameStop and AMC after getting a $ 3. infusion of billions of dollars from other hedge funds Point72 and Citadel LLC.
Speaking of Citadel, another sign that social media mentions have shifted from actions to narratives is the sudden popularity on Twitter of music impresario Kenny G.
The alto saxophonist saw his name evolve on Twitter as users, including many retail traders supporting GameStop, tweeted negatively about Ken Griffin, the founder of Citadel who is also the CEO of Citadel Securities, a market maker. who executes a huge amount of daily trading volume and which retail traders see as an existential enemy and pejoratively call “Kenny G”.
At noon on Friday, however, some memes titles were on the rise again, as were their social media mentions.