🍋 Can't Stop, Won't Stop, Game Stop

Meme Stocks are So Back

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“In this business it’s easy to confuse luck with brains.” — Jim Simons

Good Morning! OpenAI dropped some brand new features for ChatGPT that allow it to listen, see, and talk. The flirty new voice even has Sam Altman captivated. Looking to invest in a hedge against inflation? Some economists say Nvidia might be as good, if not better than gold. Melinda French Gates resigned from the Gates Foundation. Meanwhile, Sweetgreen and Chipotle are defying the consumer slowdown trend. And Shein will focus on a London IPO over increased U.S. regulations. 

SQUEEZ OF THE DAY

Can't Stop, Won't Stop, GameStop

It feels like 2021 all over again, as yesterday marked the wildest day for meme stocks in three years. It all kicked off with Keith Gill, better known as “Roaring Kitty,” tweeting for the first time since June 2021.

Gill, who famously rallied day traders on Reddit to squeeze GameStop short sellers, posted a meme of a video gamer leaning forward in a chair. This single tweet caused $GME to soar as much as 119%.

By 10:15 am yesterday, 46 million shares had changed hands, a 21-fold increase in normal trading volume for the stock. Trading was even halted multiple times throughout the day due to volatility.

GameStop shares closed with a 74% gain, while short sellers lost over $1 billion in value. AMC Entertainment, another meme stock, saw a 78% increase. Even Reddit, now a public company, experienced a 9% gain.

Takeaway: The term "meme stock" is fitting when Roaring Kitty can single-handedly add over $5 billion to GameStop’s market cap with a single meme. And it goes to show the level of influence Keith Gill has on retail investors across the country. After a 3-year social media hiatus, he also posted some additional videos featuring scenes from shows and movies—leaving everyone, except Gill and perhaps his cat, guessing their meaning.

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HEADLINES

Top Reads

  • Nvidia rivals gold as shield against inflation (YF)

  • Melinda French Gates to resign from Gates Foundation (CNBC)

  • Sweetgreen, Chipotle, other fast-casual chains bucking the consumer slowdown (CNBC)

  • OpenAI launches new AI model and desktop version of ChatGPT (CNBC)

  • Shein shifts focus to London IPO as U.S. restrictions get tougher (Reuters)

  • Inflation outlook rises, fueled by expected increases for housing costs (CNBC)

  • Arm plans to launch AI chips in 2025 (Reuters)

  • Private equity woes spell opportunity for credit-focused Ares (WSJ)

  • The rise in value of FTX's bankruptcy claims (Axios)

  • UBS weighs bonus for investment bankers who lure rich clients (BB)

CAPITAL PULSE

Markets Rundown

Stocks closed mixed as the inflation outlook rises.

Movers & Shakers

  • (+) GameStop ($GME) +74% after a short-seller squeeze fueled by social media hype.

  • (+) Squarespace ($SQSP) +13% after reaching a takeover deal with Permira.

  • (–) Fortrea ($FTRE) -15% after the biotech company announced Q1 earnings.

Private Dealmaking

  • Permira bought Squarespace, a website-building platform, for $6.9 billion

  • Brightstar Capital Partners bought AGS, a gaming equipment provider, for $1.1 billion

  • ArcLight Capital Partners bought a 16% stake in the Gulf Coast Express Pipeline for $540 million

  • Easton Energy sold its Gulf Coast Liquids Pipeline System to ONEOK for $280 million

  • Meesho, an Indian social e-commerce company, raised $275 million

  • Ajax Therapeutics, a blood cancer biotech, raised $95 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

BOOK OF THE DAY

15 Lies Women Are Told At Work

Bonnie Hammer’s legendary career spans five decades in a turbulent, male-driven industry. Today, Bonnie is a powerful leader at the very top of her field, and women at all levels constantly ask her: What is your secret to success?

Her power—and her staying power—comes from rejecting common myths about how women are “supposed” to act in the workplace. She knows that the traditional wisdom women are told about work—pithy phrases like “don’t mix work with play,” “talk is cheap,” “follow your dreams,” “know your worth,” “trust your gut,” and “you can have it all”—hold women back.

Having risen from an entry-level production assistant whose chief charge was a dog, to a transformative, top executive at NBCUniversal, Bonnie challenges conventional workplace wisdom and shares the uncommon sense women need to succeed.

Bonnie has mentored countless women in every industry, and she leads NBCUniversal’s masterclass for female executives. She’s known for telling the uncensored and uncompromising truth—even when it isn’t easy to hear.

Now, she gives you, the reader, her private masterclass—replacing the lies women have been fed about work with her unique time-tested wisdom. You will leave with powerful new truths and easily digestible, practical advice to apply in your own life.

Written with humor and heart, and full of insights and research that illuminate her points, 15 Lies Women Are Told at Work is a portable mentor for working women. It doesn’t just explain one woman’s rise to the top in a tough industry; it shows how any woman can rise as high as she wants in her own work world.

“A masterclass in success from the mailroom to the boardroom from one of the most powerful women in corporate America, discover the un-common-sense women need to succeed—and the lies to ignore along the way.”

DAILY VISUAL

Over 1 in 3 U.S. homes are bought with cash

Share of US home purchases made with cash

Source: Axios

DAILY ACUMEN

Getting Lost

Navigation skills aren't just about having a natural sense of direction; they’re largely shaped by our experiences and surroundings. Studies show that while genetics play a part, it’s the unique paths we take in life that really guide our way.

For example, cultural habits, like the popular sport of orienteering in Nordic countries or the adventurous upbringing of the Tsimane people in the Bolivian Amazon, can give us a leg up in wayfinding. Surprisingly, the gender gap in navigation is more about cultural factors than any innate differences.

Men might outperform women in some regions, but this often reflects restrictions on women's freedom to explore. In more gender-equal societies, this gap almost disappears.

If you want to get better at finding your way, try tuning into landmarks and cardinal directions more often, and maybe put that GPS away now and then.

Simply practicing and paying attention to your surroundings can make a big difference. So go ahead, embrace your inner explorer, and happy navigating!

ENLIGHTENMENT

Short Squeez Picks

MEME-A-PALOOZA

Memes of the Day

 

 

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