The newest stock of memes is also the latest in separating Reddit’s stock market hipsters from the basic B’s on WallStreetBets. After skyrocketing more than 31.87% on Monday and attracting a lot of attention on both social and social media, shares of laser scanning company MicroVision MVIS fell -23.75% on Tuesday, leading to many of the stock‘s staunchest supporters on Reddit and Twitter to blame their new friends at the party for trying to make a quick profit on their GameStop GME campaign, + 5.23% similar to a short squeeze campaign.
Like its fellow meme stocks, MicroVision has been moving with pretty insane volatility since January, gaining over 274% so far this year and assembling a cabal of ardent fans who are putting their money into the presentation of new. Tech to Prove Hedge Funds and Wall Street analysts are wrong in their bullish argument for the Washington state-based small business. Monday’s pop caught the attention of some financial news outlets who were quick to call MicroVision the new stock of memes, as the spike in chatter on the popular Reddit r / wallstreetbets forum coincided with a stock price. rapidly increasing. But the move also caught the attention of retail investors on the smaller, more dedicated r / MVIS board who, like a group of fans who liked a band before it was cool to do so, immediately became concerned about it. broader and more general interest. in their favorite trade so close to what they believe will be an explosive earnings result for MicroVision on Thursday. When the price plummeted on Tuesday, a user posted a graph-laden, data-laden argument positing that the increased interest in MicroVision attracted too many neophytes looking to cash in on pop. Citing options sentiment that went from overwhelming 77% of Monday’s calls to a much closer division, with just 48% of call volume, the author of the post surmised that “I think people saw the big rally, took its profits and now a subset is’ in preparation for an announcement / catalyst on Thursday. ” “That’s why I was worried about the WSB crowd coming in,” another user replied. But for Jake Wujastyk, TrendSpider’s chief market analyst, MicroVision’s up and down adventure is only part of the equities journey as it transitions from “penny” to “meme.” “Stocks like this move big,” Wujastyk said. “Big on the up, big on the up. As soon as the sentiment changes a bit, the price changes a lot. “And while Wujastyk did not rule out that two tribes of Reddit merchants might be working cross-purposes to bring MicroVision” to the moon, “he did see a familiar pattern in the 48. Parabolic hours of action, one that should make MicroVision’s small band of Reddit commandos take a look inside their own field before shooting at hedge funds or their fellow retail traders. “Smaller companies have that Kind of cult following, so there’s that sense of community, ”he said.“ But then there are days like yesterday where you see a 48% increase and it’s hard not to get money off the table, and it’s not a great action. so it only takes a few people to move it. ”