The meme stock trade reemerged on Wall Street after the influential figure Roaring Kitty returned to the social media platform X during Monday's trading session. Yahoo Finance's Josh Schafer joins Market Domination Overtime to dissect the meme stock rally, delving into the underlying market dynamics and exploring the potential implications of this rally for the broader market moving forward.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written by Angel Smith

Video Transcript

Joining us now with the take away of the trading day, Yahoo finds his very own.

Josh SCF Joshua, should I be leaning forward?

Is that we're doing this?

We'll do that.

So we'll start back here and then All right, locked in, we're locked in.

We're ready to talk meme stocks, right?

Guys, of course, we are talking about the meme that was posted last night right by Ro and Kitty.

And that's sort of igniting this meme rally that we saw today.

I think one of the broader takeaways I had from this was that if you guys remember we were talking about meme stocks, I think it was last week or two weeks ago and how games are starting to bubble up.

Like games stop had been moving, right.

It was like, we looked up one day and it was like, wait game stops up 30% in three or four days.

And it wasn't today, which was pure, kind of classic meme stock mania, right?

With all the stocks going up.

But I did find it sort of interesting to think like, ok, we haven't, it hasn't necessarily come out of completely nowhere.

There's been random interest in this stock for a little bit now over the past month and really kind of broader in the markets.

As I know you guys have been talking about through the hour or two, like we've seen people speculating in different areas, even you just think about sort of the crypto chatter that we've had over the last couple of months.

And obviously, you can't really explain why Bitcoin is going up, but it just has, has right.

It's your number go up meme Julie.

And so I think we've really sort of had this sentiment, maybe bubbling and this maybe set us off.

I don't know how far it goes.

Of course, no one knows how far it goes.

But to me that was one thing that I was sort of thinking about today, just like, ok, we've kind of been inching toward this and it is also important to note that from a broad sense.

A lot of market strategists say sentiment has not nearly gotten as frothy as it has in 2021.

We've talked about that a lot over the last couple of months.

We're not in bubble territory.

It isn't no matter what real metric you use.

We're not near 2021 from a frost sentiment standpoint, but this is perhaps her first sign that maybe we're getting closer.

What did you make of the argument, Josh, that really the meme stock trade, it never went away.

It just found different names different vessels.

I mean, how much have we talked about on this show?

DJ?

T Super Micro, Sweet Green.

Oh, no, for sure.

Right.

And it just, this brings us back because it is roaring kitty and is sort of that Wall Street bets crowd.

It brings us back to the original meme trade.

But you're right.

I mean, we've been talking about meme stocks on and off since 2021.

Really?

Right.

It's, we stocks by other names.

Yeah.

Maybe people have labeled Carvana as it in the past.

Right.

And now, I mean, they're having a fundamental turnaround there that you can maybe argue the company is actually doing well.

But it's still, there's a short squeeze aspect to stocks like that.

Right?

And that's where the interest really comes from and that's sort of how you see the shares shoot up.

Yes, it feels like we haven't fully lost it.

I mean, even Reddit when it went public two months ago, the one of the first, the first short report to come out on it.

So an analyst was already calling it a meme stock.

Right.

They were saying this has me my characteristics too.

It's trading disattach from fundamentals.

The stock is way too high.

And so that phrase is, I mean, I don't know, we use that phrase a lot now.

So it does feel like we're always still talking about it, but it hasn't been necessarily gamestop and a MC.

So I guess that's kind of the, they come up in a minute.

I love the idea though, like, like the image in my mind of like the sleeper cells of like all of the, like uh Reddit traders or Wall Street bank tutors and then they were awakened, like the code word was, was like, how quickly, I mean, we are not surprised because that's just kind of how surprised but not shocked.

I don't, you know what I mean?

Like, you know, this is kind of how this thing works as we talked about earlier.

There's a nice, like, sort of fun aspect to it.

Um And that it's, and it's fun to talk about.

I mean, you know, I do wonder what's gonna happen from here.

Are we actually gonna get more direct communication from roaring kitty or is it, you know, because that his, his bag was always as we pointed out earlier in the show him on camera giving the fundamental case for gamestop.

This is much more cryptic and sort of he's posted you and I were talking earlier, you know, he's been posting all these like movie meme mash ups today to try to communicate something to people.

So I don't know if we'll actually hear from him directly.

That would be fun.

Or is there, are they looking at something like everyone just immediately jumps to gamestop?

Right.

And that's sort of where the target has been today, but there hasn't been a lot of online discourse that I, I there's like a little bit of discourse but like, remember in 2020 when we got to like, what are other stocks that are shorted heavily?

Right?

And that was sort of where like the speculative bubble went next.

And I guess when you look at the action today, maybe you did see some of that, a lot of the shorted stocks that Jared was highlighting were up.

But like, is that sort of where the discourse goes next?

Is what is Lauren Kitty even talking about?

I think it's something I'm still wondering come out.

Does he come out and make the fa fundamental case for another stock entirely?

That would be fun.

Tupperware stock.

Maybe I want to see him back the fundamentals of Tupperware Jewel.

That's my Tupperware party at the Keith Gills House.

All right.

Thanks so much, Josh.