Good morning and welcome to the stock market today! The major indices may be down at the opening bell, but retail investors have a big reason to smile. It looks like the Reddit stocks rally is back and it is taking over Wall Street. So what will the stock market do today? Dive into these three big stories to find out more.
To start, the top movers today reflect the dominant Reddit theme. GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC) are some of the top tickers, with other favorites like Nokia (NYSE:NOK) close behind.
So where do these top movers come from? And what else should be on your radar? Dive into the top stories today with InvestorPlace below.
What Will the Stock Market Do Today? Power Reddit Stocks.
There is no denying that the second rally in Reddit stocks is one of the most powerful stories in the stock market today.
Yesterday, investors learned that GameStop CFO Jim Bell will resign at the end of March, opening the door for a shake-up in the C-Suite. The talk of the town is that Bell is not leaving on his own terms. Instead, Chewy (NYSE:CHWY) founder Ryan Cohen may be taking aim at his turnaround story. Cohen, an activist investor and board member for GameStop, wants to help strengthen the video game retailer. If he can get a tech-savvy CFO for GameStop, that story looks a lot clearer.
And because there is new reason to believe in GameStop, r/WallStreetBets is on fire. Other popular Reddit stocks are popping for a second chance at success. One of those names is Koss (NASDAQ:KOSS), a maker of audio equipment. Shares nearly doubled this morning in pre-market trading. Another angle for investors to watch today is a new wave of interest in finding the next GameStop. Along those lines, used-car retailer CarLotz (NASDAQ:LOTZ) is off to the races. With short interest above 65%, investors are ready for a short squeeze to take LOTZ to the move.
Coinbase IPO, Cryptocurrency News
After much talk about coming public, Coinbase filed its S-1 with the U.S. Securities and Exchange Commission today to confirm its direct listing. Investors are paying close attention, especially because of the recent interest in cryptocurrencies. Remember, just a few days ago, Bitcoin (CCC:BTC) hit an all-time high above $58,000.
In the S-1, key points of interest include $3.4 billion in revenue since the inception of Coinbase through December 2020. The company also says that in 2020, transaction fees accounted for 96% of revenue. Going forward, Coinbase says it has a huge market opportunity. It expects cryptocurrencies and their impact on the economy to heighten, and to integrate fully into individual daily life. Plus, as the current largest exchange for cryptocurrencies, Coinbase stands to get a large piece of that pie.
Another thing to note? Coinbase may really be onto something while acknowledging growing consumer adoption. On Tuesday, Federal Reserve Chair Jerome Powell told Congress that a digital dollar is a “high priority” for the central bank. Following that up, the Fed released a report detailing some of its technical and policy questions that are holding up the digital dollar process.
That sort of central bank endorsement is a huge nod to the growing legitimacy of Bitcoin and other cryptocurrencies. It also suggests just what sort of market demand Coinbase could be coming public to.
Celebrity Investors Face Off
Oh, there is nothing like a bit of a celebrity spat to fuel the stock market. So what happens when you pit folks like Elon Musk, Bill Gates and Charlie Munger together? Apparently, you talk a lot about meme stocks and high-flying cryptocurrencies.
It is no secret that Musk is a big fan of both meme stocks like GameStop and cryptos. Just yesterday, he caused a 20%-plus spike in Dogecoin (CCC:DOGE) after updating his Twitter (NYSE:TWTR) bio and sharing a new meme. He has also publicly supported the first wave of the GameStop rally and commented on Bitcoin and Ethereum (CCC:ETH). Perhaps one of his biggest moves in favor of the space was a $1.5 billion investment in BTC through Tesla (NASDAQ:TSLA).
Gates and Munger are not so sure about the actions from their fellow iconic investor. Gates talked a bit of trash, warning that many investors may be getting into Bitcoin despite not having money to spare. As he put it, if you are not as rich as Musk, maybe you should sit on the sidelines. Munger feels similarly. During an interview on Wednesday, the old-school dude took aim at SPACs, Bitcoin and Reddit names like GameStop. While perhaps it is not surprising that the right-hand man of Warren Buffett is suspicious of memes, it speaks to the rift growing on Wall Street.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.