Meme inventory frenzy not solely pushed by retail merchants: Virtu CEO Cifu

Meme inventory frenzy not solely pushed by retail merchants: Virtu CEO Cifu

The frenzied exercise involving so-called meme shares is being pushed by extra than simply retail traders, the CEO of market maker Virtu Financial

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The frenzied exercise involving so-called meme shares is being pushed by extra than simply retail traders, the CEO of market maker Virtu Financial informed CNBC on Wednesday.

“There’s numerous establishments, skilled merchants, speculators, no matter you need to name them, engaged on this in each the money equities market and the choices market,” Virtu’s Doug Cifu mentioned on “Power Lunch.” “This isn’t solely a band of retail merchants buying and selling these shares,” he added.

Cifu’s feedback come because the highlight has returned to meme shares which are in style on on-line boards similar to Reddit. Whereas the saga started in January, with GameStop then serving as probably the most outstanding instance, retail merchants have broadened their focus to different securities.

AMC Entertainment has recently been a favourite on Reddit boards and, very not too long ago, Clover Health and Clean Energy Fuels have attracted consideration.

Clover Well being entered Wednesday’s session up greater than 140% up to now this week alone. Nevertheless, regardless of an preliminary pop to begin the buying and selling day, Clover Well being closed down 23.6%.

Clear Power Fuels soared greater than 30% Wednesday.

Reddit merchants have seemed for shares with sizable quick positions, shopping for shares and name choices in an try to push up the worth.

“They are going for something. … It’s important to attempt to determine which one is subsequent,” CNBC’s Jim Cramer mentioned earlier Wednesday,…



cnbc.com

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