Reddit co-founder Alexis Ohanian advised CNBC on Thursday that the meme inventory frenzy — which traces its roots to the web discussion board web s
Reddit co-founder Alexis Ohanian advised CNBC on Thursday that the meme inventory frenzy — which traces its roots to the web discussion board web site he helped create — is what occurs when momentum investing is amplified by expertise.
“Actually, the existence of individuals getting whipped up and excited a couple of inventory has occurred, you understand, it is occurred round barbershops. It is occurred round bars,” Ohanian mentioned in an interview on “Squawk Box.” “Retail traders have simply by no means been in a position to soar on a chance in actual time, and that is what it is like within the age of ubiquitous social media.”
“Meme shares, it’s a charming identify, however I believe on the finish of the day, momentum investing is nothing new,” added Ohanian, who in 2005 co-founded Reddit alongside present CEO Steve Huffman. Ohanian, now a enterprise capitalist, stepped down from Reddit’s board final June.
The highlight on varied meme shares has brightened in recent weeks, months after the saga first captured Wall Road’s consideration in January with GameStop as probably the most distinguished instance. Shares which have not too long ago been touted on Reddit message boards and have seen their costs soar embody AMC Entertainment, Clover Health and Clean Energy Fuels.
Ohanian acknowledged that skilled traders are additionally leaping in on the motion, echoing feedback Wednesday from the CEO of market maker Virtu Financial,…