Fintech CEO Claims Meme Stocks Would Decline as Investors Shift Their Focus
Do you recall WallStreetBets and the meme stock frenzy around last year, when AMC Theaters, GameStop, and other underperforming stocks skyrocketed? As per the CEO of a fintech startup with significant momentum in the retail trades sector, the outlook for these equities in 2022 could be radically distinct.
Meme stocks have largely slumped and are poised to see lower interest, according to Dan Raju, after showing astonishing rises in the first half of 2021, driving certain significant small investors down.
Retail traders are more prone to hunt for chances in cryptocurrency this year, according to Raju, with an eye for meme stock-style price rises, according to The Insider. Aggressive investors, in his opinion, would attempt to migrate profits into crypto assets, causing equities including GameStop and AMC Theaters to fall.
According to the Tradier CEO, the Coronavirus outbreak atmosphere has driven meme stock increases over the last years. As a cause, he cited the rise in the number of individuals forced to work remotely. Raju noted that economic uncertainty that boosted equities to newer highs also had an effect.
He sees regulations as critical to cryptocurrency adoption this year, as the industry confirms its equity class position. Raju contends that regulating the cryptocurrency asset class would legitimize it, drawing more investors and driving value increases.
Many analysts and business experts have identified regulations as part of the year’s most important themes. According to most predictions, transparent, appropriate legislation would entice significant investment firms, bringing companies including PayPal and MicroStrategy into the fold.
However, Raju believes that regulations’ credibility for the cryptocurrency asset class would entice more than just giant bucks investment firms. He believes that retail traders are also expanding their involvement, with volumes flowing out of meme stocks and into cryptocurrency.
AMC and GameStop Stocks
GameStop, a video game store located in the United States, was valued at about $19 during December 2020. On the other hand, the stock’s valuation soared to $347.51 in January last year. The GME stock hiked up to over 1,500 percent every month during one point.
Whereas it is presently trading about $117 and is up 196 percent year to date, it is down 23 percent year to date. AMC stock has followed a similar path, rising 520 percent last year but trades down after peaking at $72.62 in June. The shares of AMC are down 22 percent year to date.
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