We made it to the weekend, and Redditors dominated another week of trading. Meme stocks and meme cryptocurrencies remained in the spotlight in a big way, and short-sellers likely need some time to catch up. So what all did the stock market do today?
- The S&P 500 closed higher by 0.88%
- The Dow Jones Industrial Average closed higher by 0.52%
- The Nasdaq Composite closed higher by 1.47%
So what else did the stock market do today? Here are some of the top stories.
What Did the Stock Market Do Today? More Memes.
Meme stocks like AMC Entertainment (NYSE:AMC), GameStop (NYSE:GME) and BlackBerry (NYSE:BB) cooled off today, largely in response to share sales by AMC this week. However, comment volume remains high, and it seems retail investors continue to look for the next big thing.
Today saw another grouping of speculative stocks hit center stage. To start, Clean Energy Fuels (NASDAQ:CLNE) popped up as a short-squeeze play, garnering 1,938 mentions. MicroVision (NASDAQ:MVIS) earned 611 mentions. Senseonics (NASDAQ:SENS) grabbed 275, and Bionano Genomics (NASDAQ:BNGO) earned 157.
These companies span a wide range of industries, and do not necessarily appeal to the brick-and-mortar nostalgia of GME and AMC. However, they are popular with the retail investing crowd. Most of them also have relatively high short interests.
Although the frenzy is moving past the big names that launched the short-squeeze saga, we could see a meaningful return to these movement leaders next week. For starters, Ryan Cohen will officially start his tenure as chairman of GameStop. That catalyst, and the turnaround it promises, could stoke demand.
Plus, it seems that some on Wall Street are waving the white flag. In response to the Reddit-fueled rallies, Bank of America is giving up its coverage of meme stocks. This list includes GameStop and Bed Bath & Beyond (NASDAQ:BBBY). The bottom line? Recent trading action is so far removed from company fundamentals that analyst Curtis Nagle does not see much hope.
Tesla Is Cooking Up… Something
Tesla (NASDAQ:TSLA) has had a rough few weeks. The leading electric vehicle maker has been on a wild ride, with Elon Musk leading the way through his chaotic social media accounts. News of decreased sales in China and vehicle recalls has plagued the company. Rising competition from Chinese firms, as well as the looming Lucid Motors merger, also are playing a role.
It is no secret that many on Wall Street are changing their tune on Tesla. Michael Burry of The Big Short fame is making a bit bet against the EV company. Positive sentiment on Musk is at an all-time low, according to one social media tracker.
Despite it all, reports suggest that Tesla is cooking up something big.
As InvestorPlace contributor William White wrote this morning, Tesla has submitted filings with the U.S. Patent and Trademark Office. These applications cover the use of its name and logo in the restaurant setting, and falls in line with previous messaging from Musk.
Gonna put an old school drive-in, roller skates & rock restaurant at one of the new Tesla Supercharger locations in LA
— Elon Musk (@elonmusk) January 7, 2018
Musk has long had a vision for retro-style restaurants, perhaps associated with Tesla charging stations. As he expands his footprint across the United States and world, this makes sense. And as the team at Robinhood Snacks wrote, exclusivity breeds loyalty. Associating this in-demand restaurants with the idea of Tesla perks could help the company navigate increased competition.
So what is the bottom line? These restaurants may not be popping up anytime soon, but we all know Musk is far from predictable. Maybe one day we will be snacking on retro Tesla burgers on our escape rides to Mars.
Winners, Losers, Honorable Mentions
Winners: This week brought a thrilling return to Reddit stocks like GameStop and AMC. It also saw a return of interest to doge-themed cryptos like Jindo Inu (CCC:JIND-USD) and Alaska Inu (CCC:LAS-INU). These cryptos actually claimed the top two most-visited spots on CoinMarketCap. Some analysts may be betting on their long-term demise, but they at least barked higher this week.
Losers: A big loser this week is undeniably Bitcoin (CCC:BTC-USD). The leading cryptocurrency received another blow from Elon Musk in the form of a break-up meme complete with Linkin Park lyrics. Although it is not entirely clear what message Musk was trying to convey, Bitcoin prices fell on Friday, taking the rest of the crypto market down with them.
Honorable Mentions: South Korean firm Samsung Publishing deserves an honorable mention for its role in the Musk-verse this week. The company benefits from the song “Baby Shark” due to its cover and associated music video. This means when Musk tweeted out a reference, Samsung saw its shares rally. The cryptocurrency version, Baby Shark (CCC:SHARK-USD), also deserves a shout out. Although the token is down 40% in the last 24 hours, its name gave it a brief moment of relevance.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Sarah Smith is the Editor of Today’s Market with InvestorPlace.com.