Fund manager Cole Smeed called the meme stock boom “frankly stupid” as day traders once again flocked to GameStop and AMC.
“This is a gamble,” he told CNBC’s “Street Signs Europe” on Tuesday. Mr. Smeed is CEO of Smeed Capital Management, which manages approximately $6 billion in assets.
“Remember, these are young people, 40-year-old people like me, going out and doing frankly stupid things,” he added. Ta.
Brick-and-mortar video game retailer GameStop saw big gains on Monday, with its stock soaring more than 74%. Movie theater chain AMC was also caught up in Monday’s trading frenzy, soaring more than 78%.
The jump seems to have been caused by something. post “Roaring Kitty” posted on social media platform X encouraging an army of day traders to flock to GameStop in 2021. Roaring Kitty’s full name is Keith Gill, and on Reddit he is also known as DeepF—— Value. Former marketing executive for Massachusetts Mutual Life Insurance.
In pre-market trading Tuesday, GameStop and AMC shares were up 47% and 51%, respectively, as of 6 a.m. ET.
Quoting the late, great Charlie Munger, Smeed said day traders were “just taking rat poison.”
Munger, who passed away last year, was vice chairman of Berkshire Hathaway and famously described cryptocurrencies as “rat poison.”
—CNBC’s Yun Li and Fred Imbert contributed to this report.
