GameStop’s stock momentum continues to cool off as the bull market trader and internet celebrity Roaring Kitty (also known as Keith Gill) has remained silent for over a week now, with a senior trader now calling on Gill and other meme stock supporters to refrain from what he deems unhealthy behavior.
Senior New York Stock Exchange floor trader Peter Tuchman, affectionately known as “Wall Street’s Einstein” for his appearance, issued a stern warning this week regarding the GameStop trading phenomenon that is currently unfolding.
In an interview on Yahoo Finance’s “Opening Bid” on Wednesday, Tuchman was asked about the influence of Roaring Kitty, to which he expressed deep concerns about the impact of social media on trading decisions.
Tuchman said, “Social media creates this platform of jealousy, envy, need, and greed. That’s the bottom line.”
He then criticized the glorification of quick profits, stating, “If they see somebody lying behind a Bugatti with a pile of 10,000s, and they tell them they bought GameStop at $2 and sold it at $400 — none of it’s true — they will still try to do it.”
Indeed, Roaring Kitty’s activities on social media involve more sharing of cat photos, discussions about chicken tenders, and sharing obscure movie memes that may or may not have hidden symbolic meanings. But some meme stocks contemporaneous with Gill are closer to Tuchman’s views on the matter.
As Tuchman issued his warning, GameStop’s stock continued to experience fluctuations.
GME’s stock closed at $24.20, down nearly 3% for the day, reflecting the ongoing volatility in the stock. On Tuesday, GameStop’s stock fell to levels low enough to completely erase the gains of the previous month, although by the time of writing this article, the stock had risen enough to bring that figure back into the green — but during this period, the increase was less than 2%.
The senior trader expressed concerns about young investors, claiming that many young investors hold GameStop stock amid the meme stock frenzy of 2021.
Tuchman explained, “We are at a crossroads of many young investors and traders who came to me starting at $480 from the first crash, they are still long GameStop, now they are back in the hole, putting themselves in trouble again.”
He further warned that retail traders are generally losing money.
Tuchman stated, “I know one fact, 90% of the people playing in this pond are losing money and blowing up their trading accounts.”
Despite the stock dropping 52% from its high of $66 on June 6, it continues to attract significant attention from traders — although with Roaring Kitty’s tweets, posts, and live streams causing further declines, the stock of this electronic game retailer has frequently dropped in recent days.
Tuchman’s warning highlights the ongoing debate about the role of social media influencers in stock trading and the unpredictability of meme stocks (much like meme coins). While figures like “Roaring Kitty” have gained a large following, Tuchman believes their influence may be waning.
“I think we’ve noticed that this time,” Tuchman pointed out, “his time at the forefront is not long.”
Andrew Hayward, Editor