The return of “same stocks” … and exuberance?

Return "same stocks" … exuberance?: This article explores the topic in depth.

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Return "same stocks" … Nevertheless, exuberance?:

Are Kohl’s and Opendoor the GameStop and AMC of 2025? Moreover, For the past few days. For example, these titles have experienced movements similar to those observed in early 2021, glory time of the “same stocks”. Similarly, Four years later, it is probably the same speculation logics of individual investors who are at work. Meanwhile, A sign of a return of exuberance? For example,

The action of Kohl’s Corporation briefly doubled on Tuesday. Similarly, carried away by a wave of frantic shopping on the part of private investors. For example, In a movement recalling the euphoria of the “same stocks” of 2021. However, the title of the American brand of department stores has risen among the most exchanged values on trading platforms intended for the general public.

Speculative fever – Return "same stocks" … exuberance?

Kohl’s has increased almost 100%, reaching a top of ten months to $ return “same stocks” … exuberance? 21.23, which led to a temporary suspension of exchanges. Furthermore, The title then reduced its earnings, ending the day up 39% to 14.48 dollars.

No fundamental announcements have justified such a flight. Nevertheless, For analysts. Therefore, this thrust is similar to a speculative outbreak similar to that which has propelled GameStop and AMC Entertainment four years ago. Tuesday, Kohl’s became the most discussed title on the Stocktwits forum, prized for private investors.

In recent months, private investors have returned to a weight force in the markets. They are essentially they who have been behind the rebound of American actions in mid-April. while institutional investors have been more cautious in their return to the markets.

This renewed interest was distinguished on Tuesday with nearly 183 million shares exchanged at 2:20 p.m. (Eastern time), 25 times the mobile average over 25 days according to LSEG data. On the derivative side. return “same stocks” … exuberance? Kohl’s rose among the ten most treated values on the options market, alongside giants like Nvidia and Tesla. All for a market capitalization which amounts to … 1.6 billion dollars.

Before this flight, Kohl’s had lost almost a third of its value since the start of the year. In May. the board of directors had thanked its CEO for a personal relationship deemed inappropriate with a supplier, an episode that had strengthened market distrust. Almost 49% of the group’s negotiable shares were then sold in the open. according to LSEG – a level conducive to “Squeeze shorts”, this mechanism where the open -out sellers must redeem the securities urgently to limit their losses, accentuating the rise in courses.

21 vibes

Earlier in the week, other well -sold values uncovered, such as Opendoor Technologies, experienced a similar craze. The action of this online real estate platform has lost 10%, but after return “same stocks” … exuberance? a jump of more than 300% in six sessions.

The phenomenon of “same stocks”. reappeared sporadically since 2021, is a reflection of the ability of individuals to destabilize the established rules of Wall Street by the mass effect and viral dynamics. We remember that in 2021, several hedge funds Who had shorts on the “same stocks” underwent major losses.

It is also a good thermometer of the market atmosphere. Indeed. when there is a buying frenzy on certain actions, it is at least the sign that we are in “risk-on” mode, except that there is a form of exuberance.

To understand this, it is necessary to replace yourself in the context of the appearance of spaches, in 2021. An almost marked year by an almost continated increase in actions. the hour of glory of the spaches (Special Purpose Acquisition Company), empty shells whose objective is to raise funds to then return “same stocks” … exuberance? achieve an acquisition. Secondly, the vehicle merges with the purchased company which is ultimately found listed. SPACs are also nicknamed “white checks in white” since everything is based on the credibility of management to which. investors entrust their money. Difficult to do better exuberance level.

However, there is recently a renewed activity in this segment. To continue on the parallel with 2021, the Cathie Wood Ark Innovation Fund is up 80% over just over three months. Signs that Barclays strategists associate with a “effervescence market”.

The future will tell us if the year 2025 looks like 2021. A year when the S & P500 won 27%, before losing 20% in 2022. All in a context of Fed rate increase, which itself faced a return of inflation.

Return "same stocks" … exuberance?

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