17.06.2024 Issuer Call Redemption Notice

Аватар на автора


Sandeep Rao


Meme Stock Rally: Likely to Continue

Your capital is at risk if you invest. You could lose all your investment. Please see the full risk warning here.

This current week has had significant mentions of a « meme stock frenzy » as retail investors trooped back into the markets en masse with a strong interest in a growing set of stocks that have largely been forgotten as the « AI surge » and the « Magnificent Seven » drew away market breadth. So strong has been retail investor participation that trading in certain stocks were briefly halted a number of times on zero-commission brokerages such as Robinhood1 to account for the heavy demand.

The commonly attributed (and perhaps convenient) lynchpin for this phenomenon is the return of Keith Gill (who goes by « Roaring Kitty » on YouTube) to digital activity after a three-year break. In the last « meme stock frenzy » of 2021, Mr. Gill had emerged as a leading voice of the masses investing into certain stocks, following which he was subjected to intense scrutiny by the United States Congress2 and even his home state of Massachusetts.

Much like last time, the bulk of retail investor activity centered around GameStop Corp (ticker: GME) and AMC Entertainment Holdings (ticker: AMC). Unlike last time, the list of key beneficiaries is larger and more varied. In addition to these two, the Children’s Place Inc (ticker: PLCE), Beyond Meat Inc (ticker: BYND), Tupperware Brands Corporation (ticker: TUP), SunPower Corporation (ticker: SPWR), BlackBerry Limited (ticker: BB) and Virgin Galactic Holdings (ticker: SPCE) have received substantial investor attention.

The performance of most of these stocks in recent times – most of which are of small- to mid-cap companies that had hitherto been languishing due to a variety of factors – has less to do with macroeconomics and more to do with investor behaviour.

Market Data Trends

Earnings results be as they may, a dominant driver in U.S. equities is investor interest which often lead to company performance and stock performance frequently ending up being divorced. Market data trends in these eight stocks over the Year Till Date until the 15th of May (the day after « peak market activity » in this latest frenzy) help contextualize the interest held by these stocks.

Websim is the retail division of Intermonte, the primary intermediary of the Italian stock exchange for institutional investors. Leverage Shares often features in its speculative analysis based on macros/fundamentals. However, the information is published in Italian. To provide better information for our non-Italian investors, we bring to you a quick translation of the analysis they present to Italian retail investors. To ensure rapid delivery, text in the charts will not be translated. The views expressed here are of Websim. Leverage Shares in no way endorses these views. If you are unsure about the suitability of an investment, please seek financial advice. View the original at

Source: Leverage Shares analysis

The four metrics laid out here could be explained as follows:

  1. The « Average Daily Traded Volume » is, as the name suggests, presents a mean of investor interest in each period.

  2. The « Standard Deviation » indicates the variability of interest within each period.

  3. The ratios « Max-to-Average » and « Min-to-Average » are a little complex and can be considered together: the closer the pair is to 1, the more likely is the strength of sustained interest for that period. The farther they are, the less sustained.

Over the course of the year, it is evident that each of these stocks generally received higher interest in February until the past two week. BlackBerry is an exception here. March seemed to have the least sustained interest while April tended to have large swings. This puts paid to the idea that these stocks were « memed » into high activity solely by the recent actions of Mr. Gill.

In the second week of May, only GameStop received heightened investor attention – about a 660% increase – relative to April. The only other stock in this set that came close was Beyond Meat at a 96% increase. In the third week of May, however, nearly every stock except for The Children’s Place skyrocketed in traded volumes both relative to the 2nd week of May as well as April. In week-on-week terms, The Children’s Place maintains its own relative sustained interest. Nearly all other stocks show a significant weakness in sustained interest and large swings in variability.

Large variability in trading volumes along with a bearish outlook on consumption due to macroeconomic outlook would ordinarily suggest that Put-Call Open Interest in these stocks would be trending higher than 1 as sophisticated tactical players (who hold a key role in fostering liquidity and price discovery in modern markets) position themselves to benefit from the downfall. However, as of Wednesday, this is definitively not the case.

Source: Leverage Shares analysis

While Virgin Galactic, Beyond Meat and The Children’s Place have had very high Put-Call Ratios through most of the year, the « meme stock frenzy » of 2024 sees them trending close to 1, i.e. the point of equivocation. As the frenzy began, The Children’s Place already had strengthening « Call » volumes that is began to normalize towards 1 in the current week. The other stocks, with the exception of Tupperware, have held very strong « Call » interest throughout the year that are now heading towards equivocation.

Juxtaposing the Put-Call Ratios over the volume statistics might lend weight to the notion that price levels have been closely contested and maintained somewhere close to those in 2023. While this was certainly true (for the most part) until March, this was certainly not the case as of the end of April.

Source: Leverage Shares analysis

Through March and April, five out of eight stocks bled out, with The Children’s Place being the worst hit. Over the course of the 2nd and 3rd weeks of May, all but The Children’s Place had recouped and even gained over the losses sustained until April.

Classes vs Masses

Outside of energy and financials (which traditionally tended to be more muted), overvaluation was once considered an inherent feature of almost every American equity. Over the course of the year, large swathes of institutional/high-net worth investors largely abandoned the broad economy in favour of top-of-the-line tech stocks, the « Magnificent Seven » and anything related to AI, thus effectively deflating the valuation premium of nearly every other equity in the public market. Retail investors with a taste for what directly impacts them had tended to favour these small businesses as investments to some measure or the other. The enormous disparity in instrument performance of these « favoured » few over those that had endeared themselves to the public has been a growing bone of contention for years now.

What also likely galled the « public » was that their favourites received far more interest in their downfall – as evidenced by the short interest ratio – than the entire market’s average and, of course, the « favoured » few.

Source: Leverage Shares analysis

While short-selling is deemed necessary to enable price discovery in modern markets, those who do so are often considered to be « bloodsuckers » – as Tesla (ticker: TSLA) CEO Elon Musk is often prone to say3 – reveling in the misfortune of others.

The entirety of this frenzy could broadly be posed as one class of investor asking the other as to why the latter wouldn’t extend a modicum of favour to the former’s picks as they regular bestow upon their own. This query has no satisfactory answer beyond « caveat emptor ». Given that each investor is free to choose as they wish, this frenzy isn’t just the result of some blindly following Mr. Gill’s lead. Instead, it’s the considered and selected answer of an entire class of investors who feel increasingly slighted and discarded.

Given the trends seen in the Put-Call Ratio and timing (wherein the first half of the week tends to show a lot more activity than the second), it’s likely that the frenzy will find fresh wind in the week to come. There will be a host of tactical opportunities in every direction and likely a few more additions to the list of « meme stocks » wherein interest trends will build over and sustain in the short term.


  1. « Robinhood Emerges as Meme Stock King: Daily Trading Volume Hits $5B », Finance Magnates, 16 May 2024
  2. « Keith Gill, aka ‘Roaring Kitty,’ testified to Congress on the GameStop saga. Here’s what happened. », Associated Press, 18 February 2021
  3. « Elon Musk blasted short-sellers as bloodsuckers. Bill Gates, ‘Big Short’ star Michael Burry, and other top investors have bet against Tesla. », Business Insider, 18 September 2023

Your capital is at risk if you invest. You could lose all your investment. Please see the full risk warning here.

Share this:

Related Products:

Related Products:

Related Articles

Elon Musk’s massive pay package deal doesn’t bode well for Tesla as a company.
Elon Musk’s massive pay package deal doesn’t bode well for Tesla as a company.
Elon Musk’s massive pay package deal doesn’t bode well for Tesla as a company.
Nvidia has surpassed Apple and Microsoft and exceeds the market capitalization of the UK.
Nvidia has surpassed Apple and Microsoft and exceeds the market capitalization of the UK.
Nvidia has surpassed Apple and Microsoft and exceeds the market capitalization of the UK.
The introduction of iOS18 and Apple Intelligence could fuel a multi-year upgrade cycle.
The introduction of iOS18 and Apple Intelligence could fuel a multi-year upgrade cycle.
The introduction of iOS18 and Apple Intelligence could fuel a multi-year upgrade cycle.

Required Information

Get the Newsletter

Never miss out on important announcements. Get premium content ahead of the crowd. Enjoy exclusive insights via the newsletter only.

Welcome to Leverage Shares

Terms and Conditions


If you are not classified as an institutional investor, you will be categorised as a private/retail investor. At this time, we cannot send communications directly to private/retail investors. You are welcome to view the contents of this website.

If you are an ‘Institutional investor’, you affirm either that you are a Per Se Professional Client, or that you wish to be treated as an Eligible Counterparty Client, both as defined under the Markets in Financial Instruments Directive, or an equivalent in a jurisdiction outside the European Economic Area.

Risk Warnings

The value of an investment in ETPs may go down as well as up and past performance is not a reliable indicator of future performance. Trading in ETPs may not be suitable for all types of investor as they carry a high degree of risk. You may lose all of your initial investment. Only speculate with money you can afford to lose. Changes in exchange rates may also cause your investment to go up or down in value. Tax laws may be subject to change. Please ensure that you fully understand the risks involved. If in any doubt, please seek independent financial advice. Investors should refer to the section entitled “Risk Factors” in the relevant prospectus for further details of these and other risks associated with an investment in the securities offered by the Issuer.

This website is provided for your general information only and does not constitute investment advice or an offer to sell or the solicitation of an offer to buy any investment.

Nothing on this website is advice on the merits of any product or investment, nothing constitutes investment, legal, tax or any other advice nor is it to be relied on in making an investment decision. Prospective investors should obtain independent investment advice and inform themselves as to applicable legal requirements, exchange control regulations and taxes in their jurisdiction.

This website complies with the regulatory requirements of the United Kingdom. There may be laws in your country of nationality or residence or in the country from which you access this website which restrict the extent to which the website may be made available to you.

United States Visitors

The information provided on this site is not directed to any United States person or any person in the United States, any state thereof, or any of its territories or possessions.

Persons accessing this website in the European Economic Area

Access to this site is restricted to Non-U.S. Persons outside the United States within the meaning of Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”). Each person accessing this site, by so doing, acknowledges that: (1) it is not a U.S. person (within the meaning of Regulation S under the Securities Act) and is located outside the U.S. (within the meaning of Regulation S under the Securities Act); and (2) any securities described herein (A) have not been and will not be registered under the Securities Act or with any securities regulatory authority of any state or other jurisdiction and (B) may not be offered, sold, pledged or otherwise transferred except to persons outside the U.S. in accordance with Regulation S under the Securities Act pursuant to the terms of such securities. None of the funds on this website are registered under the United States Investment Advisers Act of 1940, as amended (the “Advisers Act”).

Exclusion of Liability

Certain documents made available on the website have been prepared and issued by persons other than Leverage Shares Management Company. This includes any Prospectus document. Leverage Shares Management Company is not responsible in any way for the content of any such document. Except in those cases, the information on the website has been given in good faith and every effort has been made to ensure its accuracy. Nevertheless, Leverage Shares Management Company shall not be responsible for loss occasioned as a result of reliance placed on any part of the website and it makes no guarantee as to the accuracy of any information or content on the website. The description of any ETP Security referred to in this website is a general one. The terms and conditions applicable to investors will be set out in the Prospectus, available on the website and should be read prior to making any investment.

Leverage Investment

Leverage Shares exchange-traded products (ETPs) provide leveraged exposure and are only suitable for experienced investors with knowledge of the risks and potential benefits of leveraged investment strategies.


Leverage Shares Management Company may collect data about your computer, including, where available, your IP address, operating system and browser type, for system administration and other similar purposes (click here for more information). These are statistical data about users’ browsing actions and patterns, and they do not identify any individual user of the website. This is achieved by the use of cookies. A cookie is a small file of letters and numbers that is put on your computer if you agree to accept it. By clicking ‘I agree’ below, you are consenting to the use of cookies as described here. These cookies allow you to be distinguished from other users of the website, which helps Leverage Shares Company provide you with a better experience when you browse the website and also allows the website to be improved from time to time. Please note that you can adjust your browser settings to delete or block cookies, but you may not be able to access parts of our website without them.

This website is maintained by Leverage Shares Management Company, which is a limited liability company and is incorporated in Ireland with registered offices at 2 Grand Canal Square, Grand Canal Harbour, Dublin 2. 

By clicking you agree to the Terms and Conditions displayed.