Robinhood Markets Inc (NASDAQ:HOOD) stock is showing all the characteristics of retail trading frenzy, The Wall Street Journal's Gunjan Banjeri said Friday on CNBC's "Squawk Box."
These meme trades are characterized by a giant move higher in the stock, a frenzy of options activity and relentless momentum, Banjeri said.
The company that paved the way for the meme stock traders has now become their newest target, she told CNBC.
"What this year shows us is that these moves can stick around for a lot longer than we think," Banjeri said.
Many thought that GameStop Corp (NYSE:GME) and AMC Entertainment Holdings Inc (NYSE:AMC) would tumble shortly after the stocks surged higher, but that hasn't happened yet, she said, adding that many of these stock moves have caught people off guard.
The momentum trade is one that both retail investors and institutional investors have piled into, Banjeri said: "It looks like this movement is here to stay for now."
Robinhood was the most-mentioned stock on Reddit's WallStreetBets at publication time.
HOOD Price Action: At last check Friday, Robinhood was up 9.66% at $55.90.
Image by Sergei Tokmakov from Pixabay.
Comment(3)
NO, we like AMC. I am here to stay and will not go anywhere!
“Squawk Box.”
WTF!! FUD. at its MAX! Robinhood to replace $AMC Entertainment Holdings Inc (AMC.US)$ n $GameStop Corp (GME.US)$ ?!
classic hedgies trying it's last ditch to create FUD.. keep trying desperados whilst APES chill TGIF!
APEZ UNITE!!
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