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Scaramucci Labels Meme Stock Mania Led By GME, AMC As 'French Revolution Of Finance' But Warns 'Sober, Rational' Investors To Be 'Super Careful'

Published 21/05/2024, 06:58
© Reuters.  Scaramucci Labels Meme Stock Mania Led By GME, AMC As 'French Revolution Of Finance' But Warns 'Sober, Rational' Investors To Be 'Super Careful'
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Benzinga - by Shanthi Rexaline, Benzinga Editor.

After a significant pullback late last week, meme stocks, particularly GameStop Corp. (NYSE:GME) and AMC Entertainment Holdings, Inc. (NYSE:AMC), resumed their rally on Monday. Amid this development, financier and former White House Communication Director Anthony Scaramucci shared his thoughts about the surge.

What Happened: In a post on X, formerly Twitter, Scaramucci cautioned his followers about the meme stock mania. “A lot of these stocks are not valued properly in the marketplace,” he said. “It’s sort of the French Revolution of finance, where bee swarms of people are attacking the large asset managers and they are pushing these stocks to stratospheric heights,” he said.

And this is crushing some of the hedge fund managers, he added.

“So if you are a proletariat like me, you sort of like the revolutionary spirit of all this,” Scaramucci said. “But as an investor, as a sober, rational investor, you got to be super careful.”

Scaramucci, a crypto bull, mentioned he has been avoiding meme stocks and recommended others do the same. He predicted a “volatile, rocky ride ahead.”

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