Retail investors yoloing into AI at peak bubble vibes sounds about right
Also, is there a way to know how much of the total volume of shares is being traded now? If I kept hyping my company (successfully), and drove the share price from $10 to $1000, thanks to retail hype, I could 100x the value of my company lets say from $100m to $10B, while the amount of money actually changing hands would be miniscule in comparison.
You can easily look up the numbers you are asking for, the TLDR is that the volume in most stocks is high enough that you can’t manipulate it much. If it’s even 2x overpriced then there’s 100m on the table for whoever spots this and shorts, ie enough money that plenty of smart people will be spending effort on modeling and valuation studies.
This isn't going to end well is it.
But that isn't relevant? If they trade a lot but own less than 10% of the shares they're still a small piece.
The institutional investors are likely not trading much, things like 401k are all long term investments
> ETFs by definition need to participate
You meant to say "index funds". There are many different kinds of ETFs.
Genuinely asking.
Goldman puts out their retail reports weekly that show retail is 20% of trading in alot of names and higher in alot of the meme stock names.
They used to be so tiny due to $50/trade fees, but with the advent of all the free money in the system since covid and GenZ feeling like real estate won't be their path to freedom, and option trading for retail, and zero commission trading retail has a real voice in the markets.
Modern IPOs are mainly dumping on retail and index investors.
Also:
> The US led a sharp rebound, driven by a surge in IPO filings and strong post-listing returns following the Federal Reserve’s rate cut.
And for the rest (SP 500 etc), these companies are going to fake profits using some sort of financial engineering to be included.