Forget Wall Street analysts, fundamental financial analysis (what’s a DCF model anyway?) and taking a long-term perspective on the stock market. Today, investors have a new playbook. For those intrigued by Sphere 3D (NASDAQ:ANY) and ANY stock, it’s time to consider the power of social media.
Indeed, it’s incredible to see how the concept of investing has changed so rapidly over the past year. The rise of retail investors driving large price moves in given stocks regardless of fundamentals is impressive. However, the power of the consensus social media provides in gathering large groups of individuals together to make these bets is increasingly being underestimated by institutional money managers and the big money that has dominated Wall Street for so long.
Today, the power of social-media-driven investing is on full display with ANY stock. This is one of the top-performing stocks today, currently up around 50% over yesterday’s close. Let’s dive into what’s been driving this popular retail favorite today.
ANY Stock Surges on Intense Speculation
The rise of the meme stock/short-squeeze play has certainly been intriguing to watch. However, finding the next meme stock? Not so easy.
Many retail traders spend their day scouring social media for indications of what may be the next GameStop (NYSE:GME) or AMC Entertainment (NYSE:AMC). Among the sources many investors rely on is former hedge fund manager Will Meade.
Mr. Meade has an impressive track record of picking stocks that happen to squeeze. Whether it’s smarts, luck, or simply a self-fulfilling prophecy given his Twitter following, investors who have followed Meade into his short-squeeze picks have done well of late.
His latest pick happens to be Sphere 3D.
A number of reports have singled out key tweets, such as those from Mr. Meade, as driving today’s price action in ANY stock. Indeed, the social media consensus matters. Today, we’re seeing how powerful certain groups are in driving price action in certain stocks.
How long this can continue is anyone’s guess. However, I expect Mr. Meade may see his following grow, until this short-squeeze mania loses steam.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.