As the graph shows, that little squeeze worked until it didn’t. Momentum waned after Robinhood and other brokerages limited access to trading GameStop GME, -42.11% and other stocks that were gaining popularity. As for why, there will be hearings in Congress to uncover the culprit (hedge funds or old-fashioned margin requirements), but the end result is the same. GameStop can still have its moments. “As for what comes next, GME will be incredibly volatile for weeks and even months. That means 50% and 100% move in both directions. But at this point, a 50% bounce only brings us back to $ 75. We may go back to $ 100 or even $ 125, but expecting something higher is just wishful thinking, “says Ziedins. Here is the advice from Ziedins now. “For those who still have money in the market, there is no reason to go through with this. Earn what’s left, learn from this lesson and come back to the market better prepared next time, ”says the Cracked Market blogger. Cue, Frank Sinatra.
And those traders are inexperienced. Cardify, a consumer data company, surveyed 1,600 self-directed investors at GameStop and the AMC Entertainment AMC movie chain, -20.96% and found that the majority were inexperienced investors – 44% were under 12 months of experience and another fourth with experience of one to two years. Nearly half made their biggest do-it-yourself business investment in the past four weeks, according to the survey that ended Monday. Why? Of these mostly young, male investors, 45% said they want to make quick financial gains. Nearly 20% said it was part of a long-term investment strategy, and 16% said it was despite large hedge funds and institutional investors, according to Cardify. The Buzz The January Non-Farm Payroll report is due at 8:30 am ET. Expectations are building after strong jobless claims and other reports this week, with Bloomberg reporting that the consensus of economists has risen to 100,000 from 50,000. An unusually large number could be dismissed as a rarity in the seasonal adjustment rather than a change in the underlying economy. The US Senate in the early hours of the morning passed a budget resolution that will allow rapid monitoring of the $ 1.9 trillion coronavirus relief plan proposed by the Biden administration to pass without Republican support. Vice President Kamala Harris cast the tiebreaker vote. Pinterest PINS shares of + 0.91% are set to rally as the art-sharing social media service reported earnings that beat forecasts with a 76% increase in revenue during the fourth quarter. Another social media service, Snap SNAP, -1.60%, also beat expectations. In addition to using social media, people trapped at home played video games, as Activision Blizzard ATVI, -0.10% reported stronger than expected earnings and reserves, increased its dividend by 15% and authorized a share buyback plan of $ 4 billion. Ford Motor Co. F, + 1.52% posted a surprise profit and beat expectations. Exercise bike maker Peloton Interactive PTON, + 7.04% outperformed earnings, but noted increased shipping and other costs. T-Mobile US TMUS, + 0.95%, the mobile operator, also beat earnings expectations, but headed for a smoother-than-expected 2021. Luckin Coffee, the US-listed Chinese coffee retailer, has filed for bankruptcy, less than a year after an accounting scandal. The Market After the S&P 500 SPX, + 1.09% ended Thursday at a record for the sixth time in 2021, US stock futures ES00, + 0.50% NQ00, + 0.34% pointed to another earnings day. The yield of the 10-year Treasury bonds TMUBMUSD10Y, 1.157%, rose to 1.15%, after ending Thursday at its highest level in 11 months. The graphic
The more things change, the more they stay the same. Today’s tech giants are following a similar trajectory to the radio makers of the 1920s, as well as the dot-com era at the turn of the century. “So the point is, you can believe strongly in the ability of technology to transform our lives, but still believe that valuations could be in a bubble,” said Jim Reid, a strategist at Deutsche Bank. Random reads This local government meeting on Zoom ZM, + 2.50% turned into a chaotic sensation on the internet. Chocolate sales increased between 40% and 50% in areas with the highest number of cases of COVID-19, according to confectionery Hershey HSY, + 0.44%. Need to Know starts early and updates until the opening bell, but sign up here to receive it once in your email box. The e-mailed version will ship at approximately 7:30 am ET. Do you want more for the next day? Sign up for The Barron’s Daily, a morning investor briefing, featuring exclusive commentary from Barron’s and MarketWatch