Fund manager Cole Smead describes meme stock craze as ‘frankly stupid’ as day traders pile in again game station and aviation medical center.
“It’s a gamble,” he said on CNBC’s “European Roadmap” on Tuesday. Smead is CEO of Smead Capital Management, which manages approximately $6 billion in assets.
He added: “You have to remember these are young people, these are 40-year-old guys like me, who go out and do something that is frankly stupid.”
Brick-and-mortar video game retailer GameStop rose sharply on Monday, with its stock price soaring more than 74%.movie theater chain aviation medical center It was also caught up in Monday’s trading frenzy, rising more than 78%.
This jump appears to be caused by postal In 2021, “Roaring Kitty” encouraged a large number of day traders to flock to GameStop on social media platform X. Roaring Kitty, whose legal name is Keith Gill and also known as DeepF——–Value on Reddit, is a Former marketer for Massachusetts Mutual Life Insurance Company.
In premarket trading Tuesday, shares of GameStop and AMC were up 47% and 51%, respectively, at 6 a.m. ET
Smeed quotes “the late, great Charlie Munger” as saying that day traders “are just eating rat poison.”
Munger, who died last year and was vice chairman of Berkshire Hathaway, once described cryptocurrencies as “rat poison.”
—CNBC’s Yun Li and Fred Imbert contributed to this report.
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