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Trump SPAC seems to hurt “meme stocks” and boost Robin Hood

Sources told On The Money that the meme stock, which was a big hit on Reddit this spring, could be collateral damage as stocks of “Trump SPACs” are pushed to spectacular levels.

Shares in Digital World Acquisition Corp. were trading for less than $ 10 before announcing the initial transaction for Donald Trump. Media and Technology Group TMTG.. They soared above $ 144 at some point on Friday and closed at $ 83.85 on Monday.

GameStop shares, which wrote a book on such wild behavior, closed quietly at $ 173.97 on Friday after closing at $ 184.44 on Wednesday. Similarly, AMC closed from Wednesday’s closing price of $ 40.87 to Monday’s closing price of $ 36.83.

“DWAC is hot. People who follow and trade meme stocks are in and out of the hottest ones at the moment,” former Stock Twitter CEO Ian Rosen told Post. “Currently, it’s a DWAC, so it’s not hard to believe that some of these traders are in focus.”

Donald Trump aims to compete with Silicon Valley tech giants in building a social media platform.
AFP via Getty Images

DWAC on Monday was second Most mentioned stock GameStop was sixth on Reddit’s Wall Street Bets forum behind Tesla. AMC is off the list.

Tim Anderson, managing director of TJM Investments, told Post.

According to Apptopia data, as meme stocks hit, downloads of retail trading apps such as Robinhood, Fidelity and E * Trade are getting “card bumps”.

Since June, Robinhood has averaged about 20,000 downloads a day. In the days following the announcement of the Trump SPAC, Robin Hood’s average daily downloads were 30,000, up from an average of 20,000 since June.

“This was Robin Hood’s highest download in four months,” Apptopia’s Adam Blacker told The Post.

Robinhood app
Robin Hood’s downloads surged a few days after DWAC announced its deal with Trump.
SOPA image via Gett / Light Rocket

“Speculation is entertainment, and Robin Hood is a tool that people, including myself, love to speculate,” Robin Hood’s early investor Howard Linzdon told Post.

Robin Hood declined to comment. The company will report its third quarter earnings on Tuesday.

Trump SPAC seems to hurt “meme stocks” and boost Robin Hood

Source link Trump SPAC seems to hurt “meme stocks” and boost Robin Hood

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