GameStop’s stock momentum continues to cool down as the bull market trader and internet celebrity Roaring Kitty (also known as Keith Gill) has remained silent for over a week. Now, a senior trader is calling on Gill and other meme stock supporters to stop inciting what he deems unhealthy behavior.
Peter Tuchman, a seasoned floor trader at the New York Stock Exchange, known as “Wall Street’s Einstein” for his appearance, issued a stern warning about the ongoing GameStop trading phenomenon this week.
During an interview on Yahoo Finance’s “Opening Bid” on Wednesday, Tuchman was asked about the impact of Roaring Kitty. In response, he expressed deep concerns about the influence of social media on trading decisions.
Tuchman said, “Social media has created this platform of envy, jealousy, need, and greed. This is the bottom line.”
He went on to criticize the glamorization of quick profits, saying, “If they see somebody lying behind a Bugatti with a pile of 10,000, and they tell them they bought GameStop for $2 and sold it for $400 – which is all not true – they’re still going to try to do it.”
Indeed, Roaring Kitty’s actions on social media have mostly involved sharing pictures of cats in his livestreams, discussing chicken tenders, and sharing obscure movie memes that may or may not have hidden symbolic meanings. However, some of the meme stocks that emerged alongside Gill are closer to Tuchman’s views on the matter.
Tuchman issued his warning as GameStop’s stock continues to experience volatility.
The GME stock closed at $24.20, down nearly 3% for the day, reflecting ongoing turbulence. On Tuesday, GameStop’s stock dropped to levels low enough to completely wipe out the gains of the previous month, although at the time of writing, the stock has rebounded enough to bring that figure back into the green – albeit with an increase of less than 2% during this period.
The senior trader expressed concerns about young investors, claiming that many of them hold GameStop stock amidst the meme stock frenzy of 2021.
Tuchman explained, “We’re at a crossroads with a lot of young investors and traders coming to me, starting at $480 when it broke the first time, still buying GameStop, and now they’re back in the hole, getting themselves in trouble again.”
He further warned that retail traders are generally losing money.
Tuchman stated, “I know one fact, 90% of the people playing in this pond are losing money and blowing up their trading accounts.”
Despite a 52% drop from its high of $66 on June 6, the stock continues to attract significant attention from traders – though it has frequently dropped in recent days with Roaring Kitty’s tweets, posts, and livestreams.
Tuchman’s warning highlights the ongoing debate about the role of social media influencers in stock trading and the unpredictability of meme stocks (similar to meme cryptocurrencies). While figures like Roaring Kitty have gained a large following, Tuchman believes their influence may be waning.
“I think we’ve noticed that this time,” Tuchman pointed out, “his time in the front line is not lasting.”
Andrew Hayward, Editor
