Ohanian recently spoke with CNBC, tracing back the roots of the frenzy to the online forum website he helped create. Ohanian dives into the trend pinpointing the results of momentum investing when it is “amplified by technology” and particularly, social media.
Ohanian said in an interview on Squawk Box, “Really, the existence of people getting whipped up and excited about a stock has happened, you know, it’s happened around barbershops. It’s happened around bars. Retail investors have just never been able to jump on an opportunity in real-time, and this is what it’s like in the age of ubiquitous social media.” He also adds, “Meme stocks, it is a charming name, but I think at the end of the day, momentum investing is nothing new.”
Months after the GameStop saga on Wall Street, Reddit has been touted as the go-to message boards for various meme stocks like AMC Entertainment, Clover Health and Clean Energy Fuels. As stocks become more popular amongst individuals, the Reddit co-founder seems to think that the increased involvement will be positive in the long run, “We absolutely need more financial literacy … but the thing we have to keep in mind is, this is here to stay.”
In case you missed it, the U.S. is planning on lifting its ban on TikTok.