Market close, GameStop short seller: Market Domination Overtime

Stocks (^DJI, ^IXIC, ^GSPC) close Monday mixed as the Dow Jones Industrial Average slips further and the ISM's manufacturing Purchasing Mangers' Index (PMI) and GameStop's (GME) renewed meme rally throw markets for a loop.

Market Domination Overtime Anchors Julie Hyman and Josh Lipton walk you through the market close, joined by Yahoo Finance's Head of News Myles Udland to make sense of GameStop's second stock spike in a month.

Citron Research Founder Andrew Left also joins the show to expand upon why he is shorting the meme stock staple again after 2021's trading frenzy spurred by retail trader "Roaring Kitty" — the online username of Keith Gill — calling this phase of the meme trade "totally different" from the last

This post was written by Luke Carberry Mogan.

Video Transcript

There is the closing bell on Wall Street and now it is market domination over time.

We are joined by Jared today.

He's down at the New York Stock Exchange.

He's going to give us an update there from uh from there in a moment.

But let's see where the major averages ended up.

First of all, the dow off the lows of the session down about 115 points, about 4/10 of 1%.

We got more economic data coming out this week.

But today we did have a measure of manufacturing that came in weaker than expected.

So interesting action on the back of that because we got a mixed picture.

The S and P 500 up about 1/10 of 1% and the NASDAQ rising about a half of 1%.

So the S and P turning around late in the session, there are a couple of asset glasses to mention before we take it to Jared, we have the tenure having its biggest move of the year, I believe down 11 basis points to 4.4% today.

But that's not giving that much relief to stocks interestingly enough.

And then we also earlier talked about what's going on in the oil market.

Big move there as well downward, a seven just above $74 a barrel after the OPEC Plus meeting that happened over the weekend that are for a told us about us earlier in the day.

Now let's send it over to Jared at the New York Stock Exchange for a closer look at today's sector action and the other noise that was happening down there.

Oh, it's a new set of noise.

Uh Nice to hear the closing auction here and a lively closing bell as well.

Let's go to the Wi Fi Interactive here.

I'm going to chart the day's sector action.

And as you noted, Julie, it was the worst day for bond yields.

That means they went down the most for the year, but that's actually usually good for equities, just not seeing it today.

So in the forefront, we got health care XL V is up the most.

That's up 7/10 of a percent followed by communication services and tech.

Everything else in the red led to the downside by energy XL E down 2.64%.

Also, I note that industrials and utilities down over 1%.

And uh let's check out the NASDAQ 100 then I'll get to the Pharma sector decent amount of green here.

And guess what if we check out the uh NVIDIA chart?

All right, some technical difficulties there with Jared.

Let's get to Yahoo Finance Miles UDL though.

Got him here right on set and he's gonna join us more on trading takeaways with Miles Jared was just warming me up.

I walk through some of my talking points.

Um, all right, let's, you know, let's start with the, the meme in the room.

Right.

Um, I mean, I, I think that the, it's like, kind of cute, you know, three weeks ago when this comes back up, it's been a few years.

It sort of like let's go back in time and remember the meme trade uh today, you know, you guys are just talking about the headlines coming over with the Wall Street Journal about sec looking into this e trade, thinking about what to do um about this.

And I think it be because you get into this moment where there's a large group of investors who are just gonna be like, I don't wanna hear about this anymore.

I don't care.

It doesn't matter to me, I don't play these names and that's fine.

And I think that, you know, on the business media side of it's a very alluring story, there's still a lot of unanswered questions.

It's a great story, personalities, right?

Great personalities, they've already made the movie.

Uh So, you know, we, we can go through that.

But I, I think as we were discussing a little bit earlier, this is the kind, this is a feature now of markets and not only the meme trade but the retail investors presence in shaping how, you know, certain kinds of big money managers will think about the market for a lot of people.

This is an opportunity to play it.

I think probably on the long side, as much as the short side, obviously, when any stock goes up a lot, you've got plenty of shorts who are gonna circle that idea.

Uh The short interest around a lot of these meme names, Gamestop A MC.

Others uh is not, you know, has remained considerable over the last few years.

It's not like people have completely lost interest in these stocks as you know, call them sort of play things of investors.

And while it can be sort of, you know, it's not a cute groundhog day anymore.

Right.

It's a little bit like tired and it's 2024.

We're still doing this.

But I, there is something notable about the role that, you know, let's call them gags, retail focused gags play in financial markets.

We now have crypto available to go into 401 K's.

That whole market is kind of a, you know, it's kind of a bit, it's kind of 1/4 wall breaking joke.

Well, what's sort of interesting to me about this is, yes, whatever the subject of his trading is like, you look at what Keith Gill is doing and I mean, I think about lots of other famous money managers who filed 13 Fs who on TV, and who people follow what they're doing, who speak at the Zone conference and people then chase those various trades.

And so it's interesting to me that now there is someone outside of the traditional, I mean, and this was part of the narrative in 2021 of course, but now that like he's that guy and he can just say this and then, you know, that goes up.

Well, um, the first part makes me think the idea that, um, you know, I don't know exactly what kind of numbers Buffett's put around it.

But he said things, the effect of like, if I managed way less money, I would do way better, right?

Because no one would know that it's him doing and there's plenty of opportunities out there.

I think this is why, you know, long only portfolio managers still exist.

People are, are, I mean, it's not, I'm just not saying this, like there are lots of stocks that are going to outperform the market in what proportion do you hold them?

Do you identify them and so on and so forth?

That's why this business is so alluring for so many.

But, you know, to your second point about how people follow all these individuals, I think that the meme stock trade has brought up like 1/4 wall.

I mean, I know, I just said it, but there's like a, there's a reflexivity around the awareness of so I follow Keith Gill.

Therefore other people followed him.

Therefore, I can short those people.

Therefore I can short, I can go along against the people shorting him.

This is very like meta like it's like a meta, meta meta around where the meme stock fits into investor psycho and you know the reddit aspect of it, the social trading aspect of it, all these things that get very buzzy but are meaningful parts of the story.

I do think bring in some unique elements to it where it is not just a hey, this stuff always happens in financial markets.

I think something a little bit different is happening with this specific kind of trade.

And I don't think this is the last time we're gonna be talking about gamestop and probably not the last memes we'll ever find.

What did you think?

We were also talking that we were talking Chris Murphy from Susquehanna earlier miles and he was kind of pointing out some differences between now and 2021 and one point he made, which is a good one.

Is that 2021 there, there was that kind of mania because it was always like, ok, who's gonna get it next?

You know what I mean?

Like who's got the bull's eye in their back next?

Whereas this time, Chris was pointing out it seems more contained.

Yeah, there's definitely the the the field of potential meme stocks has been, you know, contained to use his word.

And I think the other part of it is, remember in 2021 it was, it was like very uh cutting edge or whatever.

But the first time someone came out and said these companies should issue stock, like, you know, the stock went up a lot, you should do something with it.

And, you know, I remember uh certain commentators going on certain networks hammering the CFO of this company every day.

And I was like, hey, you know what?

That is a good point.

They probably should raise capital and now guess what gamestop did last week, they went out and they raised capital and it's the very cynical side of this.

And it's like, yeah, of course, they're gonna do that.

And so to that point, Josh, like, I think the field is narrower because, you know, that's the loot of the shareholders.

So why would you go trying to find the next meme name when you're just gonna get the looted?

The second it, quote unquote works.

So it changes the nature of that trade a little bit.

And then I guess one of your other takeaways, although less, less fun to talk about it with.

I mean, but important, probably more important, more important, probably, probably a little more important for your back to reality.

A big drop in bond yel today that as we keep talking about did not give a meaningful lift to stocks because if yields are going down because the economy is slowing down.

That's not, maybe so great.

Yeah.

You know, the last let's call it two weeks of Wall Street Notes feels like there's been just a lot more conversation around what's happening specifically in the treasury market.

And I think viewing treasuries as an anticipatory mechanism around what the fed is going to do, we're going to get, you know, a new dot plot next Wednesday.

So that's coming up extremely quickly where the fed sees itself headed.

And then, yeah, the, you know, the PM is that we got earlier this morning, open up that question of just how healthy is the US economy a couple ways to read the retailer comments we've gotten in the last few weeks, but certainly, uh, enough critical mass around retail executives saying they see some signs of concern.

So you've got that slow down the economy you got, where are rates headed?

Um, are they headed that direction for the right reasons?

And, you know, then that brings me back to like, this is one of the months of the, you're a little bit of a news vacuum.

And so, you know, you start looking at the other thing, where's the other thing, six weeks till we have earnings again.

So we'll get through the Fed and then it's three weeks of, you know, kind of looking at each other as we get through.

Well, fingers crossed for high school graduation and stuff like this and send the kids off to camp and then we will do bank earns on July 11th or 12th, dads and grads baby.

That's it.

This is the time of year, you know, you know, let, let's break out your polos in the grill.

That's it.

You're on it.

You're very on theme.

Thanks a lot.

All right.

Meantime, it was also a busy day in the chip space, NVIDIA and A MD, both making announcements at a conference in Taiwan called Computex, NVIDIA, Ceo Jensen Wang, revealing details about the company's next next next generation platform, I guess you could say.

Well, A MD launched its new A I processor joining us now is John Vin Key Bank capital Markets, equity research analyst, John.

Great to see you again.

So how do we weigh all of these announcements?

You know, NVIDIA not giving us a lot of detail on what they're calling Ruben, which is what's gonna follow Blackwell, but the market seemed to greet that announcement though better than it did anything we got from some of the other chip makers.

Yeah, I think the market was kind of focused on a couple of things within video here.

You know, obviously they have committed to coming up with an annual kind of product cadence in terms of releasing new GP architectures, right?

So Ruben was kind of very much in line with it, right?

So you've got Blackwell ramps at the end of this year, next year.

They also announced Blackwell ultra.

And then you've got Ruben in 2026.

But I think the the most important thing and investors have really been kind of keying in and focusing on it with NVIDIA is this whole shift to this whole full server system stack platform starting with GB 200 NV, all 72 right?

So NVIDIA is going to be shifting from ship shipping chips and boards to their customers to basically now shipping, you know, full server rack systems with networking CPU and GP us all integrated into one hardware stack.

John just to push a bit more on Ruben.

I know maybe details were a bit scamp.

But what, what did we learn, John, what do we know about Ruben?

Um We didn't hear, hear a whole lot about Ruben, you know, but you know, I I think if you look at Nvidia's historical cadence, you know, each of their generations of next generations of chips are going to use, you know, two different things.

You typically have a pretty substantial performance improvement, typically 40 to 50% performance and improvement.

And then increasingly they are also shifting to, you know, a higher performance high bandwidth memory.

So, you know, Blackwall is coming out which is gonna use HBM three E. Um It's likely that Ruben is gonna use the next generation high bandwidth memory uh called uh HBM four.

Um John, what what we all kind of keep trying to get our arms around is uh how long can NVIDIA continue this pace?

And I know that you have on the street, relatively high expectations going forward.

We talked to one analyst this morning who said that the market cap for NVIDIA could exceed $10 trillion by 2030.

Does that make sense to you?

Do you think we're gonna continue this pace?

I think NVIDIA has an extremely bright path ahead of itself, right?

You know, it's uh we're in the very early stages of the generative A I cycle and you know, like a lot of chip companies, you know, you get into this cadence where they're just releasing, you know, version 2.0 version 3.0 which are just, you know, slightly better versions of, you know, version 1.0 but if you look at what NVIDIA is really doing, um they are really still taking really substantial shifts in architectures, right?

They've gone from making chips to kind of integrated, you know A I board solutions to now fully integrated kind of heterogeneous compute server stacks, which is um you know, allowing them to kind of maintain their leadership uh above their competitors.

A and John, we, you know, a MD made some news here too.

Just I'm I'm interested you, you kind of take broadly John, you know, Ceo Lisa Su can she kind of effectively compete here in your opinion, John, can she, can she keep up with Jensen Wong?

I think she can, um you know, the question is, you know, for, for a MD to win, right?

They, they don't have to get 70 to 80% market share, right?

But she's uh has a, a phenomenal track record of executing on the, on the PC front with Ryzen uh on their server front, they've been able to go from almost zero share and now they've got, you know, close to 30% share of the server market versus Intel.

So she's got a great track record of execution there.

She's also got a very strong uh customer base within the data center which she's using as a foothold to get, you know, to launch their A I chips M I 300 X.

So yes, I think she can compete.

I think she's got a great track record.

I also think that, you know, the market is um really badly looking for a credible second source to, to NVIDIA, NVIDIA is making 90% gross margins on its A I chips, which is unheard of in the chip industry.

Those are like software margins and the industry badly badly wants a credible second source on the merchant side, John switching gears before you, you go, I just want to get your reaction because there was a surprise leadership change at Lattis Semiconductor, the Ceo Jim Anderson leaving the company and going over to coherent um what do you make of that?

And, and where does that leave lattice?

Yeah, we certainly were surprised by that announcement.

Um You know, Jim Anderson has been, you know, credited in, in our view from, for, for a big part of the turnaround story at LATI, you know, coming in, uh identifying that this was a really, um you know, highly valuable asset and making changes uh within the, within the uh company and also bringing out a very strong management team.

He also has a very strong track record, you know, come from A MD is largely responsible for a lot of the success of Ryzen.

So, you know, we're a little bit concerned, you know, because if you look at Lattice, you know, we think they've got very bright prospects ahead of themselves.

They're getting share within the small F PGA market.

They're also launching their midrange Avant Avant product, which is basically going to double their T. So, um you know, with that kind of ahead of themselves, um we're surprised that he kind of left for coherent at this point.

Yeah.

Well, we'll keep an eye on it to see who ends up running Lati on a more permanent basis.

John, thanks so much.

Good to see you.

Thank you happy.

Well, a big name from the meme stock craze for 2021 has taken up a short position on gamestop.

Again, more on the meme mania when market domination overtime returns a check in on the crypto landscape.

Microstrategy's Michael Saylor has settled a tax fraud lawsuit with the district of Columbia, the Bitcoin Investor agreeing to pay $40 million to settle the case.

The complaint alleging sailor violated the district's tax laws by not paying income taxes while living in DC.

Meanwhile, Binance founder CZ reporting to a federal prison in California, he will be serving four month sentence in a low security facility after pleading guilty in April to charges of enabling money laundering.

As for FDX, co founder, Sam Beman free the 32 year old making it back to the metropolitan detention center in Brooklyn after briefly going to prisons in Oklahoma and Pennsylvania last month, Beman freed will remain in the city until his appeal has been fully briefed.

And gamestop shares surging as retail traders pile in after Keith Gill also known as Roaring Kitty showed a position in the video game retailer, a rather large 11 meme frenzy critic.

However, taking this as a chance to re short the stock, Andrew left Cron research founder joining us now to discuss Andrew.

First of all, it's good to see you again.

I hope you're doing well.

I thought you hung this up.

I thought you weren't going to do this anymore that you had given up.

I can't believe it.

I can't believe it's 3.5 years later.

We we're talking about game stuff.

I can't either.

So what, what, what drew you back in every time you try to leave and pull you back in?

What happened this morning.

So you, I wake up this morning, you know, I've traded the stock small but I wake up this morning, I see where it's trading and you see why it's trading there and so much is wrong.

See, the first time going back 3.5 years, I kind of understand it is there was a high short interest in the stock.

It became some g global movement.

Uh you know, the Eat the Rich.

Uh He became a folk hero this roaring kitty.

He put an actual thesis up.

He made a video online why he thought gamestop was undervalued.

Uh And he, and he actually put investment thesis, albeit he was wrong, it went higher and you know, the rest is folklore today was totally different.

We wake up to today and all of a sudden last night he puts this monster position, no thesis.

He's been wrong short term options.

I personally do not believe this is his own personal money.

Why do you, why do you say that Andrew?

I mean, just let's do math.

I mean, what's the size of this trade that he put on today?

100 and what, 100 and 50 million?

115 something like that.

But you say 100 and 50 million, you know, how, how much did he make?

First time around if he made, you know, 200 million after taxes, you have 100 million.

Do you think he put his whole net worth on this trade.

If he made 250 million, I don't think he made 250 million.

If you go online, it says he made somewhere around 50 million, 60 million.

So I just don't think it's his money, you know, and, and, and there should be some form of disclosure if it's not, you know, that he's went out to really shake this world up.

And also he did give us a thesis.

It's not like he said, I'm buying it for a reason.

So either he has MNP.

I and I don't think he does fair enough.

I don't think there's anything gamestop is gonna say in the next two weeks, we were gonna say they're opening an A I Fund with the money they raised.

Uh It just seems to me it was completely different.

It was almost like what he's doing right now is trying to take advantage of the retail traders, the same people that he was supposed to represent 3.5 years ago.

So Andrew, what do you, what are you doing this time around?

What position have you taken?

Well, first of all, whenever a short game, stop start now you do it cautiously and you know, you do it prudent.

You understand.

I think everyone learned any trader learned 3.5 years ago that anything can happen.

And the last thing you want to say is it's different this time.

But I think it's different this time.

Uh namely you don't have the same short interest you had in it.

Uh When we've seen the capital structure of the company is different and people see how it's played out more.

So.

Yeah.

So, you know, obviously, I think if given the opportunity to short the stock when it was $40 this morning, it's great.

I think if somebody, you know, I don't recommend people short stocks, but I think anyone who's buying the stock right now, I think they're gonna get, it's gonna be short term.

I think they, they won't have any patience for, uh, the kiddy nonsense.

Do you, Andrew?

I'm just curious, what do you think gamestop's future is as a company?

Do you even think of it as a company?

Well, I mean, Ryan Cohen doesn't even them, they pretty much almost abandoned their strategy, right.

You know, he wants to use the money in the corporate uh coffers to go ahead and do outside investments.

So I think they've taken the whole notion of, you know, what Gamestop could be and it's gone, you know, think of the different iterations it's had in the past three years.

It was gonna be something in the crypto space.

I was gonna do something, you know, that didn't go, obviously, the gamestop didn't work, the streaming didn't work.

Partnerships don't work.

And that was just gonna be a, uh an investing vehicle for, for, for Ryan Cohen.

So you know, the future of gamestop is, I mean, what am I gonna say?

They also the Gamestop Token rally today?

So I would have never even that there would be a Gamestop Token.

So, and, and just quickly here, there was also a report that E trade was considering moving his account from the platform.

What's your reaction to that?

I think it's awkward to post.

Huh?

You're talking to me, I believe that people should put their opinions online.

If you believe in your opinion of the stock, put it online to post your actual account without anything behind it, it just seems a bit, something about, it seems wrong.

And I guess I, I can't pick out what it is.

I guess e trade felt the same way if, in fact, they do this, if, in fact, this is his account.

If, in fact, a lot of different things, there's a lot of ifs.

Oh, finally Andrew the last time this happened and you shorted the stock.

You, I, I mean, I seem to recall, you got threats, right?

You got a lot of flak and that's why you kind of pulled back.

You felt like you're perhaps weren't safe as a result of all this.

Are you worried about this this time?

As you said, this feels different.

It just feels different.

First of all, it's not a jihad against gamestop.

You know, I, I think people understand, it's amazing.

I think, I think investors understand now differently.

I think.

Um, you know, I think people are not, we've changed a lot and I think the retail mentality has changed a lot.

I still think people are incredibly mean online.

I still think Reddit and Twitter or X is, is a real mean place.

A lot of times that I don't enjoy even reading about, I'm just, you know, give me fair market commentary.

So I haven't looked at my emails.

I kind of won't read Twitter or Reddit, what they say about me.

I really don't care.

Uh You know, I, I just hope the retail investors realize right now.

Uh This is not what we saw 3.5 years ago.

I really don't care if they don't, if somebody wants to buy the stock at 3035 and if the stock goes to 50 it goes to 50.

So, you know, it goes to 80 goes to 80.

So I lose money.

You know, it's, it's a free market.

It is indeed, Andrew.

Thank you so much for talking to us.

It's good to see you again.

Thank you.

Thanks.

Well, that'll do it for today's market domination over time.

Be sure to come back tomorrow at 3 p.m. Eastern, but don't go anywhere on the other side of the break.

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I've got you covered with the latest and greatest market moving stories.

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