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The current meme stock mania is somewhat different than the one we witnessed at the peak of the pandemic, says Caleb Silver – the editor-in-chief at Investopedia.
How is current meme stock mania different?
Silver does agree that the bubble in some of these stocks may not hold up.But he’s convinced that a bunch of others like Super Micro Computer Inc (Nasdaq: ) “have good stories” too. On CNBC’s “”, the renowned journalist said on Monday:
SMCI has a huge business, a real business. Nvidia loves them. Their servers apparently remain cooler. Texas Roadhouse people tell me is fantastic. Somebody’s got to win the retail world.
Note that saw its revenue more than double in its latest reported quarter and its stock has rallied close to 1000% in the trailing twelve months.
What else was different back in 2021?
Another difference between the current meme stock mania and the retail flood of 2021 is that “people are still being cautious”, as per Investopedia’s Silver.It is dissimilar compared to the pandemic-era also because the high-flying stocks today “are not heavily shorted – not heavily hyped on Reddit”.Even their trading volumes, while higher than usual, are nowhere near what “we saw three years ago”. In fact, a bunch of these are “heavily owned by institutional investors” as well, he added.All in all, Caleb Silver argues that the valuation bubble at writing is not entirely attributed to retail investors “trying to pump these stocks up and get out”.More By This Author:
