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It is anticipated as the market opens later today, Virgin Galactic, Palantir, Kodak, Genius Brands stocks will continue with the rally as it is observed with GameStop stocks.
Retail investors continued to break Wall Street traditions, despite WallStreetBets being banned on some social media platforms. On Wednesday, Virgin Galactic Holdings Inc (NYSE: SPCE), Palantir Technologies Inc (NYSE: PLTR), Eastman Kodak Company (NYSE: KODK), Genius Brands International Inc (NASDAQ: GNUS) significantly surged to close the day in double-digit gains. Meanwhile, most of them had retracted some of the gains during the after-hours trading session.
According to MarketWatch, Virgin Galactic stock surged on Wednesday to close the day trading at $46.35, up 10.3%. However, the volatility had eaten away some of the gains during the after-hours trading session as they had lost approximately 7.23%. At the time of writing, in the pre-market, they are 5.29% down.
Palantir stocks on the other had spiked 10.26% to close Wednesday trading at $39.00. Meanwhile, they were down approximately 5.38% during the after-hours trading session. In the pre-market, PLTR stock is 7.90% down in the pre-market.
Kodak stocks surged over 28% on Wednesday to close the day trading at $12.08. Meanwhile, they were down approximately 3.39% during the after-hours trading session. KODK lost 7.95% in the pre-market.
Genius Brands stocks on the other hand had the largest gains as they surged over 81% to close the day trading at $3.06. Meanwhile, they were down approximately 19.28% during the after-hours trading session. In the premarket, teh sahes are 22.22% down.
Bigger Picture on Virgin Galactic, Palantir, Kodak, Genius Brands Stock Surge
Most hedge fund firms have been on the opposite bet from retail traders thus the huge rallies as shorts get squeezed. For years, hedge fund analysts have called shots in Wall Street but 2021 has caught up with their entrenched behaviors. Losses have been reported to be in billions as they try to purchase stocks before the expiry of their bets.
Such volatility has not been experienced in the stock market for the past few years, with the exceptions of Tesla Inc (NASDAQ: TSLA) stocks. The volatility of more than 10% a day is mostly attributed to the crypto market that is marred with ‘crazy’ speculation.
For the purpose of clarity, a banana analogy might help clarify the recent Wall Street happenings. Let’s assume that five bananas cost $10 in the market, and Tom has five bananas. Jerry asks to borrow five bananas from Tom a bit and instead sells the five bananas thinking the price will go down (shorting). In his mind, Jerry thinks he can later buy the five bananas at a cheaper price to return to Tom and make profits from the difference.
Tom notices Jerry’s mindset and purchases the five bananas until Jerry has nowhere to buy from and returns the borrowed bananas. As Jerry is forced to buy from Tom who is holding them without selling, the price of the bananas is forced to skyrocket making huge profits for Tom and immense losses for Jerry. In that analogy, Tom can be viewed as the retail traders while Jerry as the Hedge fund managers.
Meanwhile, It is anticipated as the market opens later today, Virgin Galactic, Palantir, Kodak, Genius Brands stocks will continue with the rally as observed with GameStop stocks.