WSB concept stocks counterattack US retail investors’ suspected manipulation

Local time on February 3, WSB concept stock collective rebound, Gauss electronics rose nearly 28%.


The collapse of WSB concept stocks on the previous trading day did not scare off US retail investors. There are many retail investors who firmly hold and chant “we don’t sell” on WSB forum. However, some retail investors have said that they have lost $25000 due to high buying.

Not for sale! WSB concept stocks counterattack US stock retail investors suspected of manipulation? SEC investigation

It is worth noting that, according to foreign media reports, the US Securities Regulatory Commission is searching posts on social media and message boards, and reviewing transaction data to assess whether these posts are manipulation.


On February 3 local time, WSB concept stocks rebounded collectively.


According to wind data, the intraday trend of WSB concept stocks was volatile, with game station rising as high as 26% and Gauss electronics once rising by 50%. As of the close, Gauss electronics, AMC entertainment holdings, game station and blackberry rose by 27.95%, 13.94%, 3.08% and 3.98% respectively.


Zhongzhengjun noticed that when the WSB concept stocks plummeted the previous trading day, some retail investors posted on the WSB forum calling for bottom hunting. Mwybert, a netizen on the WSB forum, said, “only when we unite can we succeed. All of us should do that. ”


Last night, the rebound of WSB concept stocks strengthened the confidence of retail investors in US stocks. Netizen rocket10117 forwarded a news about the game station and added: “we don’t sell it!” Netizen webacerob said, “it’s not over yet! The New York Times has just confirmed that large hedge funds are still at great risk, and we are taking the opportunity to expand our advantage. ”


The SEC has launched an investigation


It’s worth noting that the securities and Exchange Commission of the United States has begun to investigate the social posts that push up the stock prices of game stations and other stocks, according to Peng Bo.


According to reports, the SEC also reviewed the trading data to assess whether the posts were manipulation to push up the stock price. According to people familiar with the matter, the SEC is also investigating how brokerages deal with the increase in trading volume, deciding to restrict trading during the surge in trading volume, and whether these companies have complied with the rules in restricting trading and are consistent in fully disclosing information to customers.

Not for sale! WSB concept stocks counterattack US stock retail investors suspected of manipulation? SEC investigation

It is understood that the SEC said in a statement at the end of January that it is closely monitoring the extreme market volatility in the near future. Will be committed to protecting investors to maintain the principle of fairness in the market.


U.S. Treasury Secretary John Yellen will call a meeting of top financial regulators this week to discuss the market volatility caused by retail investors’ trading in stocks such as game stations, the Treasury Department said in a statement. Heads of the SEC, the Federal Reserve and the commodity futures trading commission will all attend.


Maneesh Deshpande, head of equity derivatives strategy at Barclays, said: “concerns about the possible spread of the retail squeeze have temporarily eased. In spite of the relatively strong blowout of some popular stocks, on the whole, the short-term forced short trading stocks affected are still only a small fraction of the US stock market. ”


According to media reports, online brokerage Robin Hood, known as the “headquarters of retail investors in the United States”, has been sued by 30 parties in at least 10 states. The reason is that they were unable to buy and sell shares during the freeze, resulting in losses of millions of dollars, and accused the company of choosing to “manipulate the market” to help other financial institutions.


In addition, with the spread of the enthusiasm of retail investors, recently, South Korea, Singapore and other multinational retail investors have also launched a declaration of war against bears. According to Yonhap news agency on February 3, South Korea’s regulators said on the same day that South Korea will extend the ban on short selling of shares to May 2. The ban will be partially lifted from May 3. The monetary authority of Singapore and the Singapore Exchange Regulatory Authority recently jointly issued a document, suggesting that investors should be vigilant and pay attention to the risks related to securities trading instigated by online forums and social media chat groups.


The market value of Google’s parent company soared over 600 billion yuan overnight


Although the aftermath of the “century war” between US retail investors and Wall Street short companies is still in the air, it is worth noting that during the US stock earnings season, stocks with better performance than expected are bringing obvious benefits to investors.


According to wind data, on February 3 local time, American Internet giant Google’s parent company alphabet opened sharply, and then fluctuated at a high level; as of the close, Google’s parent company alphabet rose 7.28% to $2058.88, with the latest total market value of $1.39 trillion.


According to calculation, the total market value of Google’s parent company alphabet has increased by 93.403 billion US dollars overnight, which is about 603.2 billion yuan at the latest US dollar to RMB exchange rate.


On the news side, the latest quarterly financial report released by alphabet, Google’s parent company, showed that in the fourth quarter of last year, its revenue was US $56.898 billion, a year-on-year increase of 23%; its net profit was US $15.227 billion, a year-on-year increase of 42.7%.


After the financial report was released, a number of institutions gathered to raise their target prices.


Jeffrey analyst Brent thill raised Google’s parent company alpha’s target price to $2400 from $2150 and reiterated his “buy” rating on the stock. Thill thinks the valuation of the stock is attractive and calls it the first choice for 2021. Brian Nowak, an analyst at Morgan Stanley, raised the target price of Google’s parent company alphabet from $2050 to $2200 and maintained its “outperform” rating. Youssef squali, an analyst at truist, raised the target price of alpha, Google’s parent company, from $2100 to $2250 and maintained its “buy” rating.