It’s not that the internet is having an influence on certain stocks (called meme stocks), it’s that these companies are being seized by people who love them. It’s not a business venture for these people, it’s truly owning something that’s dear to their heart.
I know this charge has been completely headed by Reddit. I don’t know how Reddit works – I’ve never visited the site before – but I think it’s easy to tell what everyone’s true motivation is.
This isn’t about business, it’s about keeping companies alive. It’s quite awesome when you think about it. When you can’t help keep a company alive by simply being a customer, because that company hasn’t been allowed to operate for the better part of a year, then the only thing you can do is buy its stock.
This is especially true of GameStop. I’m not one of the people who believe hedge funds are evil, or that they deserve to fail, though I still think it’s funny how the GameStop fiasco affected them. Regardless, I don’t think it was ever truly about the hedge funds; the only reason we heard about them in the news is because hedge funds were deeply affected by what’s happening. But what’s happening has nothing to do with the hedge funds. It was to some, but it’s not as if these people never heard of hedge funds before, or that they suddenly got an urge to hurt them.
No, at the heart of all of this is ordinary people saving companies that mean a lot to them.
I wasn’t part of that movement back in (I think it was) January. I think millions of people are with these “meme stocks” in spirit, though. In the world of business, it’s extremely rare for the majority of a major company’s ownership to belong to people who just simply love them.
I read an article that AMC is (or was?) giving away free popcorn to it’s new shareholders. We all know they wouldn’t if they weren’t part of the “meme stocks” movement. It seems to be their way of saying thanks to all these people pitching in their extra cash to keep their company alive. I think I read in that same article that AMC started dumping their stock once this surge began, in order to use that money to pay off debts they accrued during the COVID-19 pandemic.
I think all of this is pretty cool. Now we wait to see if it was enough.