Future Meme Stock Rallies
Plus, Icahn lets Kroger win.
Today is Monday, June 6, 2022.
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Future Meme Stock Rallies
Investors of all generations participate in meme stock rallies, says Tradier CEO and Co-Founder Dan Raju in a new episode of the Early Bird podcast.
Past Rallies: There were meme stock rallies in 2020 and 2021 due to new traders joining the market during the pandemic. These investors focused on short-term trading on stocks without strong fundamentals, according to Raju.
Slower: Meme stock prices are still high, Raju said, but the number of meme stock rallies is down in 2022.
Next Rallies: Raju said that meme stock rallies in the next 12 months could be tied to the U.S. Federal Reserve’s interest rate hikes and volatility in the market.
Final Thoughts: What are the other big trading trends that investors should watch in the next year? Find out by listening to a new episode of the Early Bird podcast.
Notable Earnings Today: Science Applications International (NYSE: SAIC), NGL Energy Partners (NYSE: NGL), Futu Holdings (Nasdaq; FUTU), Coupa Software (Nasdaq: COUP), Gitlab (Nasdaq: GTLB), HealthEquity (Nasdaq: HQY), SRAX (Nasdaq: SRAX).
Notable IPOs Today: N/A.
Notable Equity Crowdfunding Campaigns Ending Today: Redcrest Kitchen (Honeycomb), Knead Local (Honeycomb), Herb & Oline (MicroVentures).
Notable Economic Events Today: N/A.
Icahn Lets Go of Proxy Fight With Kroger
Activist investor Carl Icahn won’t engage in a proxy fight with grocery chain Kroger (NYSE: KR) after all, according to a report from The Wall Street Journal on Sunday.
Background: In March, Ichan wanted to nominate two directors to Kroger's board in order to force the grocery chain to change pork supplier policies so that pigs could be treated better. Ichan also wanted to pursue a similar strategy at McDonald's (NYSE: MCD).
Details: The report leaked a letter in which Ichan congratulates McDonald's “on their victory in this proxy engagement” and writes “the same outcome will result at Kroger.” This means that Ichan is dropping the proxy fight with Kroger and letting the grocery chain giant win.
Impact: Ichan’s proxy fight didn’t seem to impact the direction of the company at all, and investors should no longer be concerned about any impact.
Numbers: Shares of Kroger are up 16% in 2022 and are up 34% in the past 12 months.
Final Thoughts: Kroger reports its financial earnings on June 16.
Is the 2022 Market Selloff Over?
After the first five months in 2022, it feels like investors are grappling with a bear market.
Data: The S&P is already down 14% in 2022, which is not the start that most investors had hoped for.
Relief: The Dow Jones Industrial Average was positive last week, a feat that has not been achieved in months.
Final Thoughts: The market could go in a positive direction in June, although it is also possible that the selloff continues. Therefore, investors should proceed with caution.
Trends to Watch
Take That to the Bank: China's Ant Group launches digital bank ANEXT in Singapore (Reuters)
The Price Can’t Be Right: Saudis Raise Oil Prices More Than Expected Amid Asia Rebound (Bloomberg)
Optimistic: Bitcoin Might, in Fact, Be the Great ‘Equalizer’ (CoinDesk)
Just in Use Case: From Speculation To Fake Swords, Cryptocurrency Struggles For Use Case (Forbes)
Not Working Out: Reddit Is the King of Bad Timing (The Wall Street Journal)
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