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Month: March 2021

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Is GameStop the Next Blockbuster?

I came across an interesting article today. It drew a parallel between a dominant brick and mortar retailer of entertainment of today, GameStop, and one of yesteryear: Blockbuster: It’s 100% obvious that over time all game software is going to be downloaded. This is the same or worse than with movies. Already, 100% of the game content on smartphones is […]

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Is Robinhood Screwing You On Your Trades?

An interesting detail surfaced in this week’s Congressional hearing on GameStop shares and Robinhood, the platform where they’re often frenetically traded: In his statement, Themis Trading Partner Sal Arnuk went right for that last issue, calling attention to the fact that payment for order flow (PFOF) causes a disconnect between a broker and his customer — especially in the case […]

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The Stimulus is Headed into Bitcoin

Even as Bitcoin sits near record highs, a new survey by Mizuho Securities finds that many Americans plan to put their stimulus check into the hot cryptocurrency: …the Mizuho survey found around 20% of check recipients expected to allocate as much as 20% of their checks to bitcoin and/or stocks, while 13% expected to allocate 20% to 80%, and 2% […]

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Almost All SPACs Lose Money and They’ve Never Been More Popular

I came across an incredible stat today: Citing data from Dealogic, Barron’s notes that there have been 302 domestic initial public offerings (80% of which are blank-check outfits) raising an aggregate $102.3 billion, so far this year through March 10. For context, the 2020 full-year tally registered at 457 IPOs raising $167.8 billion, while the tech bubble-era high-water mark of […]

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Big Investors Are on Zoom and They’re Not Going Back

I’ve been listening to an interesting podcast this morning with two major investors in early stage start-ups: Jason Calacanis and Paul Judge of Panoramic VC. They discussed meeting founders purely through Zoom, rather than in person, and how that’s changed the way they invest. Both said they found it far more efficient to meet people remotely. Each remote meeting might […]

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The 2nd GameStop Hearing Just Happened. Here’s What You Need to Know.

Congress held a second hearing on the mania in GameStop Corp. shares yesterday. It focused on the business model used by Robinhood and other brokers popular with retail traders, which is called “payment for order flow.” In this system, companies that execute trades (such as Citadel Securities) pay the broker (Robinhood, etc.) to execute the trades. They execute the buy […]

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Short Sellers Are Bailing On These Stocks

Short sellers are abandoning their positions as the market reaches new highs: Short interest in U.S. stocks fell to just 2.95% by the end of February, S&P Global Market Intelligence says. That’s down 45 basis points from the short interest level at the end of 2020 when it was 3.4%. Short sellers, it seems, simply couldn’t take the heat and […]

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GameStop Hearing 2.0: What You Need to Know

At 10am Eastern time today, Congress will be having its second hearing about the frenzy in GameStop Corp. shares that sent the stock up 1700% in January. This hearing is unlikely to affect the price of the stock much. Rather, it will dig into whether or not the trading system around it is fair. A major focus will be a […]

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GameStop Short Squeezes Are Over

GameStop Corp. soared in January as short sellers were squeezed by a legion of buyers from Reddit’s Wallstreetbets. The shorts had to buy in order to close out their positions and stanch the bleeding, driving the stock even higher. It seems they’ve learned their lesson. Short selling of GameStop shares has decreased dramatically, and the stock is no longer particularly […]

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Who Is the Secret Dogecoin Billionaire?

Someone owns $2.1 billion worth of dogecoin. And no one knows who it is: Records show that a person, or entity, owns about 28% of all of the cryptocurrency in circulation—a stake worth about $2.1 billion at current prices. The holder’s identity isn’t known, which is common in the opaque world of digital currencies. The account could belong to an […]

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How Alex Jones Lost Bitcoin Worth $563 Million

Ten years ago, when bitcoin was worth only $5 each, cryptocurrency proponent Max Keiser gave conspiracy theorist Alex Jones a laptop. It contained 10,000 bitcoin, which would now be worth over $500 million. That laptop has gone missing: Alex Jones, the founder of the right-wing media group Infowars, has revealed that he has lost the laptop containing 10,000 bitcoins given […]