Latest news with #Iachini
Yahoo
31-07-2025
- Business
- Yahoo
Meme stocks are melting as investors look towards Big Tech
The meme stock FOMO is taking a breather. According to a new report from Vanda Research, investor appetite for meme stocks like Kohl's (KSS), Krispy Kreme (DNUT), and GoPro (GPRO) has dropped sharply as traders shift their attention to Big Tech earnings and broader market drivers. 'Just like that, the meme stock frenzy of July 2025 has seemingly fizzled out,' Vanda's Marco Iachini wrote. Across a basket of popular meme names, average daily turnover plunged as much as 90% in recent weeks. The lone exception is the fintech SoFi (SOFI), which saw a recent jump in trading tied to its common stock offering. The cool-down in retail-driven trades comes as major companies like Meta (META), Microsoft (MSFT), and Apple (APPL) deliver earnings that could set the tone for the broader market. Thus far, Meta and Microsoft have reported robust quarterly earnings, powered in part by their AI efforts. 'It's not surprising to see retail activity take a breather,' Iachini noted. With Big Tech earnings underway and a Federal Reserve meeting now in the rearview mirror, retail investors are reallocating toward more established players rather than high-risk names. While meme stock flows made headlines, they didn't ignite the kind of broad-based retail frenzy seen during the GME episode in 2021, he added. Over the past month, Kohl's is down 88%, while Krispy Kreme has shed roughly 84%. Other one-time favorites like Opendoor Technologies (OPEN) and SharpLink Gaming (SBET) have also lost steam. Meanwhile, institutional investors are playing a bigger role in driving the marker. Since April, the rally has largely been fueled by retail and systematic flows. But for stocks to keep climbing through the second half of the year, "discretionally institutional investors may need to play a larger role,' per Iachini. Still, retail traders haven't disappeared — they've just become more selective. Shares of Kohl's spiked 2,589% in trading volume the week of July 21, after it became the target of a meme-stock trading frenzy fueled by users on Reddit's WallStreetBets. Krispy Kreme saw an even steeper 4,371% surge during that period, powered by similar circumstances, despite weak first quarterly earnings results and ending a partnership with McDonald's (MCD). GoPro (GPRO), which has emerged as a favorite among speculative traders, didn't miss out on the action. Its trading volume ballooned 2,727% that same week. But the recent meme stock pop hasn't come close to its 2021 peak. This brief shift towards riskier assets, sparked by hopes for rate cuts, easing inflation, and a soft landing, now appears to be under reconsideration. 'Speculative trading tends to resurface when bullish momentum in risk assets stretches over multiple months,' Iachini wrote. 'But behavior may lean more opportunistic than momentum-driven in the days ahead.' Francisco Velasquez is a Reporter at Yahoo Finance. He can be reached on LinkedIn and X, or via email at Click here for in-depth analysis of the latest stock market news and events moving stock prices Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
Yahoo
30-03-2025
- Business
- Yahoo
Commentary: Why are investors buying the dip in stocks?
I need to know the answer to one important question today. Why are you buying the dip in stocks? Is it because it has worked so well for you in the past five years? Is it that you have so much money invested in the markets that you aren't sure where else to put it? Is there another reason? Send me your answers on X @BrianSozzi. I'm very curious. I will begin replying after 7:30 a.m. from the parking lot of my gym after I finish working out. The cold hard data suggests that despite all of the negatives weighing on the markets (tariffs, inflated S&P 500 earnings estimates, slowing economic data — I can go on), investors continue to hit the buy button on dips. Retail investors have "significantly bulled up" of late, Vanda Track strategist Marco Iachini pointed out. This often-eager investor class has poured $32.9 billion into US markets since the S&P 500's (^GSPC) late February lows. That is in the 97th percentile of any 24-day stretch since 2014, Iachini found. Retail investors' top purchases during this period were for shares of Nvidia (NVDA), Tesla (TSLA), Palantir (PLTR), Amazon (AMZN), and AMD (AMD), in that order. Investors are showing the strongest conviction in US stocks, which runs counter to various red flags in consumer sentiment surveys. "The renewed gap between purchases of single stocks and ETFs corroborate the view that retail investors are taking a glass half-full view after a series of half puts from the Fed, macro data and Trump in recent weeks," Iachini wrote. "In particular, the rising share of purchases of Magnificent 7+ names we highlighted two weeks ago has continued to climb higher." "This shift away from broad ETFs suggests individuals see these names as either on sale or as relative safe havens despite recent underperformance," Iachini added. "Historically, increases in ETF buying coincide with growing fear across market participants. We're not there yet." Are you one of these individuals buying the dips and excited that the S&P 500 is back above its 200-day moving average (though historical data suggests you should be worried)? Let me remind you of the backdrop that I would characterize as teeming with risks to stocks. Auto tariffs are here, and more duties on other stuff are likely coming in a few weeks. Tariffs aren't some BS thing; they stand to cause real harm to companies' profits. Read more: The latest news and updates on Trump's tariffs JPMorgan auto analyst Ryan Brinkman cut estimates and price targets on Ford (F) and General Motors (GM) after the 25% tariff announcement this week, citing "increased potential for material earnings risk from draconian auto tariffs that now seem likelier than ever to be imposed as soon as April 3." Note the word "material." In the meantime, big companies Delta (DAL), FedEx (FDX), and Nike (NKE) have warned about near-term demand trends this month. And now Wall Street is out there slashing their S&P 500 price targets. The top business leaders I talk to each day are sounding more cautious about the economy. Build-A-Bear Workshop (BBW) CEO Sharon Price John told me on Yahoo Finance's Opening Bid podcast (see video above) that tariffs mean higher toy prices. Fashion designer Rebecca Minkoff told me the same thing in an episode that will drop on April 2 at 8:00 a.m. ET. Others have told me privately that the uncertainty on policy has begun to weigh on orders. In turn, that is causing them to rethink their guidance — more on that when earnings season begins in a few weeks. "Ambiguity is the No. 1 enemy of a market," former director of the National Economic Council and current IBM (IBM) vice chair Gary Cohn said on Opening Bid. "When a company creates ambiguity in their earnings profile, in their growth profile, in their business model, the market will punish that stock. When politicians, legislators create ambiguity in the way that taxes are going to work, the way that capital gains are going to work, the way that they're going impose tariffs, they create ambiguity to a market and the market as a whole reprices." But, hey, keep dip-buying. Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email Sign in to access your portfolio
