This month’s meme stock frenzy has a new player with third-party presidential candidate Robert F. Kennedy Jr. announcing that he purchased a large stake in GameStop, appealing to social media-driven traders who often flock to stocks like GameStop. Kennedy invested $24,000 in GameStop, equivalent to about 1,200 shares, in a move that seemed more like a statement against institutional investors, particularly those involved in short selling trades that bet against the success of companies. Kennedy expressed support for the “retail rebellion” and promised to address predatory short selling if he wins his presidential bid.
Shares of GameStop surged over 4% after Kennedy’s announcement, although it is unclear if this was directly related to his purchase given the stock’s high volatility. Kennedy’s move comes as the hype surrounding GameStop from last week’s flash rally begins to dissipate, with the stock now down about 67% from its peak. Interestingly, Kennedy is not the only presidential candidate to dabble in meme stocks, as former President Donald Trump also owns a significant stake in Trump Media, the parent company of Truth Social, which is considered a meme stock similar to GameStop due to its valuation being disconnected from the company’s performance.
Kennedy’s involvement in the GameStop craze reflects the ongoing trend of retail investors taking on institutional investors in the stock market. His support for the “retail rebellion” and stance against predatory short selling aligns with the sentiments of many individual traders who rally behind companies like GameStop out of a desire to challenge traditional investment strategies. The rise of meme stocks like GameStop has brought attention to the power of retail investors on social media platforms like Reddit’s WallStreetBets, where memes and virtual warfare against Wall Street are common.
The mix of politics and meme stocks has become increasingly prevalent, with high-profile figures like Kennedy and Trump aligning themselves with companies like GameStop and Truth Social. The influence of social media in driving stock prices and shaping investment trends has challenged the traditional dynamics of the stock market, leading to a new wave of retail investors participating in meme stock movements. Kennedy’s entry into GameStop shares highlights the growing intersection between politics and finance in the digital age, where individuals with significant followings can impact stock prices and market dynamics with their words and actions.
