Wall Street “permanently changed” by memes actions and retail
Matt Kohrs, YouTube host and investor, shares his views on the virality of cryptocurrencies and memes stocks to online communities.
JARED BLIKRE: Welcome to Yahoo Finance Live. Memes stocks are picking up again this week. We saw Avis Budget Group jump 200% earlier this week. GameStop also flies high, with AMC. And guess what? We have Matt Kohrs, the YouTube host, here to break everything down for us. And Matt, thank you for being with us today. Glad to have you.
I just wonder because we were all here for Reddit’s initial phenomenon, GameStop. And we’ve seen it repeat where we have these groups of stocks that get a lot of attention, soaring prices. This is iteration three or four for the group, although we have smaller ones that constantly get attention. I’m just wondering what you think of this whole phenomenon and where we are right now in this cycle.
MATT KOHRS: For me, I think the biggest takeaway is that it really looks like the founding of Wall Street and the way stocks are interpreted, viewed and how people make their decisions, it almost feels like it. has changed permanently. I thought about it a lot. And at the start of the year – and I get it, a lot of mainstream media, a lot of general media, it’s like, OK, it’s, like, kind of a fad. It’s crazy. We could talk about that later.
But we are now 11 months into this thing. And it shows that retail ideas and concepts about where they find value, where they don’t, are obviously here to stay. And that kind of back to my original point. It’s just as if all foundations, especially in the retail segment, are different. And it looks like we are seeing Wall Street itself changing before our very eyes.
ZACK GUZMAN: Hey, Matt. It’s Zack. Nice to see you again, man. I mean, when we maybe look at how the views on all of this have changed as well, you know there’s a lot of people looking back at the original genre of Robinhood, the GameStop commercial drama from earlier in the game. year and point it out as, like, reasons to think that some of this stuff is rigged against them, at least when you’re a retail trader. When you look at it, however, how can this fuel what we’ve seen in people who are now switching to crypto? Some people say this game is just as rigged. I mean, how do you see retail traders comparing stocks versus crypto now?
MATT KOHRS: So, there, two different things. With crypto, I think it’s a human desire, I guess, of fair – it’s always exciting when you see huge gains. I know SHIB has been in the news recently. And these are just a few of those gains, and you see it a lot. It’s like, it’s always fun, and people always – it’s almost dreaming, like, man, imagine if I put that in I would go up that percentage. It’s, I think, just a kind of desire, oh, that would be fun to have that kind of money.
I am much more up to date on the structure of the stock market, like the actual structure of the market, as opposed to crypto. So, I’m not sure about the overlap there. But referring to the feeling of feeling like it’s rigged against us, I mean, I would say it’s not really that foil hat thing anymore. I mean, we’ve all read the GameStop report, but beyond that it’s very evident right now with these two actions, AMC and GME in particular. You have about 60% of it traded over the counter. To me, how does this make sense for the price discovery point, market efficiency? How does it make sense that less than half of it is traded on enlightened exchanges?
So this community, as it grows, almost looks like a knowledge hive mind. And we all share it. And now that we’re at 11 months, at first, a lot of us didn’t know what we didn’t know, but as we get into it we start to point out these different things. For example, is paying for order flow the best thing for the market structure? Is it good to have so many trades done on informed exchanges, settlement cycles?
PDD – PDT is it fair? And these 13F? Right now, why are shorts not being reported when you have to report longs, calls and puts? Why is this one left out? And I think all of these questions are just very legitimate questions that maybe the group at the beginning, like I said we didn’t know what we didn’t know, but I think the knowledge within the group grow rapidly.
JARED BLIKRE: Matt, I have to tell you, I love talking about the microstructure of the market before noon. Never too early to do this. I want to ask you about your subscribers. I’m looking at your YouTube channel here, 374,000 subscribers. You have the pulse of this new generation of traders who have arrived. I don’t know where you were at the start of the year, but you’ve seen the development here. Many of these traders have been burnt down by trade. Some of them gave up. But maybe some of them stick to it. I’m just wondering what is your experience with your viewers? What is their background?
MATT KOHRS: I think the trip has been wild. And whenever it comes to money, of course, there’s always a heightened sense of emotion. And just in pure numbers, when you speak with a movement that includes millions of people, you’re going to have people who absolutely destroyed it, may have locked up money, other people who have been burned. This is the nature of the market.
And on a more moral and personal level, I find that to be one of the things because I know when you have a voice that’s why I go out of my way every day to stress out, hey, I am 27- Age. I share what I know. But I am by no means a financial advisor. In fact, I don’t think anyone should be making financial decisions based solely on what you’ve discovered on social media. But this journey is full of highs, highs and definitely lows.
But as this happens I think one of the things that I find most impressive is that people within the community there really seems to be a strong appetite to really really fight for reform. market, market transparency. For me, and I think of a lot of experts who know the structure of the market, we admit that it is not perfect. I’m not saying the system is completely – like we have to go to 0.
It’s just that we highlight some issues that I think takes time to get started, reform, and I think we should reform because right now it seems to benefit a number of people. whereas, I would say, putting the whole system at risk. But for the trip, it’s exciting. And I think we’re still in the early stages of leading this long-term ape nation.
ZACK GUZMAN: I have seen a lot more interest from many people who may have neglected to invest for a long time. So YouTube host Matt Kohrs thanks you for coming here to break it down for–