GameStop shares (GME) ripped higher following a better-than-expected report on both revenue and earnings. But “meme stocks” are called that for a reason: like any meme, popularity is fleeting.
“We think this short makes a lot of sense here, especially in #Quad4 where these meme stock rallies have been short-lived and they’ve had trouble keeping elevated prices on those near-term moves,” explains Retail analyst Jeremy McLean in this clip from The Call @ Hedgeye.
The VIX is at the low end of its range, Keith McCullough points out. That makes just about any stock an iffy choice at the moment, let alone a novelty investment propped up by posters on Reddit and Twitter.
“The fact that you have to entertain the factor exposure that is meme stocks…” McCullough explains. “The mother of all bubbles has many bubbles inside of the bubble, and that is one mother of a bubble inside of that bubble.”
Watch the full clip above.