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GameStop’s stock momentum is still cooling as bull trader and influencer Roaring Kitty (aka Keith Gill) remains quiet over the last week-plus—and now a veteran trader is calling out Gill and other meme stock proponents for stoking what he sees as unhealthy behavior.
Veteran New York Stock Exchange floor trader Peter Tuchman—a notable personality known as the "Einstein of Wall Street" due to his appearance—issued a stark warning this week about the ongoing GameStop trading phenomenon.
In an interview on Yahoo Finance's Opening Bid on Wednesday, Tuchman was asked about the impact of Roaring Kitty—and in reply, expressed deep concern about the impact of social media on trading decisions.
"Social media has created this platform of envy, jealousy, need, and greed. That's the bottom line," said Tuchman.
He went on to criticize the glorification of quick gains, saying, "If they see someone lying on the back of a Bugatti with a stack of ten-thousands, and they told them they bought GameStop at $2 and sold at $400—none of which are true—they are still gonna try and do it."
Granted, Roaring Kitty’s approach to social media was more about sharing images of cats on his livestreams, talking about chicken tenders, and sharing obscure movie memes that may or may not have hidden symbolism. But some of Gill’s meme stock contemporaries have more closely aligned with Tuchman’s perspective on the matter.
Tuchman's warnings come as GameStop's stock continues to experience volatility.
GME shares finished the trading day at $24.20, down nearly 3% on the day, reflecting the ongoing turbulence in the stock's performance. On Tuesday, GameStop’s stock price dipped low enough to completely erase the previous month’s gains, though it ticked up enough to put that mark back in the green as of this writing—but by less than 2% during the span.
The veteran trader expressed concern for young investors, many of whom he claims hold GameStop shares from its previous high back during the meme stock craze of 2021.
"We are at the crossroads of so many young investors and traders who come to me, who are still long in GameStop from $480 from the first debacle, and now they are going back to the well to get themselves in trouble again," Tuchman explained.
He further cautioned about the widespread losses among retail traders.
"I know for a fact that 90% of the people who are playing in this pond are losing money and blowing up trading accounts," Tuchman claimed.
Despite a 52% drop from its June 6 high of $66, the stock continues to attract significant attention from traders—though with Roaring Kitty’s tweets, posts, and livestreams falling off again, the price of the video game retailer’s shares has routinely dipped in recent days.
Tuchman's warnings highlight the ongoing debate about the role of social media influencers in stock trading, as well as the unpredictable nature of meme stocks (much like crypto meme coins). While figures like Roaring Kitty have gained significant followings, Tuchman believes their influence may be waning.
"I think we've noticed that this time around,” Tuchman noted, “he hasn't lasted in the forefront very long.”
Edited by Andrew Hayward