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The worst day yet for US stocks this year saw all three major indices deep red on Black Friday, but meme stock investors simply saw a bad day for everyone else.
While the Dow Jones Industrial Average DJIA, -2.53%,
S&P 500 SPX, -2.27%,
and Nasdaq COMP, -2.23% all fell hard on a graciously shortened trading day after the Thanksgiving holiday.
Black Friday is a strong day for retail and entertainment stocks historically, but both popular meme stocks – video game retailer GameStop GME, -5.69%,
and theater chain AMC Entertainment AMC, -3.24% – closed pretty hard that day, declining 5.4% and 3.2% respectively.
Those losses coincided with the wider market panic sparked by the news of the new Omicron coronavirus variant, but you would have had a hard time finding real concern about stock prices in the die-hard Ape corners of Reddit and Twitter TWTR, -0.95%.
“Sh! T. . . the virus is back. . . I better sell my GME !!! ” joked Reddit user Nazereth_99. “NOT!!!!!” and added a vulgar form of address to Citadel founder Ken Griffin, widely viewed as the personification of investors short of GameStop stock.
This theory was ubiquitous, even when GameStop’s trading volume was less than half the daily average.
“Market crash you say ?? I wonder how many GME shares will sell monkeys, ”was the title of a popular post on subreddit r / Superstonk that answered with this .gif
“The same! I see red? I buy. I see green? I buy,” replied user GL_Levity. “Then I’ll shove the stocks up my ass so that nobody can have them.”
On Twitter, some saw the sudden panic as an opportunity for meme stocks to individualize and give GameStop a new edge.
At AMC Apes, the pullback was less severe, but the volume of the stock was even lower, causing some Redditors to look for meaning in the red results.
“This massive ‘sell-out’ on Black Friday at 4am is in our favor, here’s why,” postulated user Billy-BigBollox.
“The massive move we are seeing right now is that they may liquidate the ‘meme’ stocks they yearn for in order to raise their capital,” they continued. “There is also the option for them to double and increase their short positions. Anyway, have the shorts closed their positions? If the answer is NO, nothing has changed, except that I have one more option to add a discount to my portfolio. “
With the shortened trading day and the fact that many retail investors are now trading options on their meme trades, it’s hard for the monkeys not to believe that the market is digesting the threat of the Omicron variant and these two names are coming back on Monday .
After all, when a Redditor responded to a post in the markets that panicked over the new COVID threat – and shows the broader economy’s addiction to cheap money now at opioid levels – “Well dude. The FED will pump it back with nonexistent money. “