The Absolute Insanity Of Retail FOMO In Just Three Headlines

We have written extensively about the sheer retail FOMO euphoria that has gripped markets (How Retail Investors Took Over The Stock Market; “It’s Like Gambling, Isn’t It?”: First Time Retail Investors Piled Into Stocks During March Plunge; “For Guys Like Me, It’s All About Sheer Luck”: Why Retail Traders Are Facing “Catastrophic Losses“) so we won’t dwell on this topic suffice to point out the stock chart of (the aptly named) Genius Brands – a company that makes educational DVDs and CD music – and just three headlines, all hitting within one hour, and revealing the insanity of what happens when everyone pours into the market.

• Genius Brands stock soars 40%, has rocketed 3,309% over the past month;  Jun. 4, 2020 at 9:44 a.m. ET by Tomi Kilgore
• Genius Brands stock turns lower, falls 12.5% ahead of volatility halt after rising as much as 47.9% earlier;  Jun. 4, 2020 at 10:26 a.m. ET by Tomi Kilgore
• Genius Brands registers to offer 60.1 mln shares for sale by selling stockholders; Jun. 4, 2020 at 10:29 a.m. ET by Tomi Kilgore

And the result:

And yes, GNUS is the most popular stock on Robinhood today…

… where retail investors flooded the microcap company, resulting in the completely unwarranted surge in its stock price.