The record date for the spinoff was set for Dec. Meta Materials had warned investors that Next Bridge Hydrocarbons would spin off as a private company and that MMTLP would stop trading as early as November 2022. 9, 2022, the Financial Industry Regulatory Authority (FINRA) implemented a trading halt, leading to an outcry from shareholders who were stuck with shares that couldn’t be traded. On what became MMTLP’s last trading day, Dec. Retail investors formed a motivated social media community that rushed to pour money into the company. Written off by Wall Street, it quickly gained traction on social media as the short sellers closed in. Since then, investors have been searching for the next short squeeze, targeting companies such as AMC and Bed Bath & Beyond (OTCMKTS: BBBYQ). This historic market phenomenon changed investing in multiple ways, such as sparking a significant increase in retail investors actively trading and participating in the market. As retail traders successfully pushed a stock that Wall Street had cast aside to new heights via the r/WallStreetBets forum, the investing world marveled. The answer can be traced back to the iconic GameStop (NYSE: GME) short squeeze of 2021. MMTLP holders would see their preferred shares converted into private stock of Next Bridge, which would not trade.Īs the specified date for the spinoff - and the delisting of MMTLP - approached, meme stock investors continued pumping money into the stock. In 2022, interest - and trading frenzy - peaked when Meta Materials announced it would spin off those legacy assets as Next Bridge Hydrocarbons. A holdover from Meta’s merger with Torchlight Energy Resources, MMTLP represented legacy TRCH stockholders’ stake in oil and energy assets. For meme stock investors, much of Meta Materials’ appeal rested in MMTLP, its preferred stock. It claims to be producing technology for many industries, including aerospace and defense, 5G communications and automotive technology. The company classifies itself as a functional materials and nanocomposites producer. And Mullen Automotive (NASDAQ: MULN) continues to issue press releases of increasingly absurd information to its fans. Redditors continue to pump AMC Entertainment (NYSE: AMC) shares, for instance, despite the theater company’s plans to converge that class with its cheaper APE ones. The story of Meta Materials illustrates a wider issue that comes with investing in meme stocks. Although the functional materials company repeatedly warned investors, meme stocks fans jumped in anyway. No rational investor should willingly part ways with their cash.īut Meta Materials (NASDAQ: MMAT) is no regular firm. Ordinarily, that would seem like a ridiculous deal. jewishzevran on Tumblrīut it turned out that the meta madness was just starting, and the other users started contributing.Would you invest in a company that made it clear that every dollar you invest with them might never be seen again? This debate might just take you back to college days when you had an assignment do analyze all the literal influences, allusions, and metaphors in some ancient poems. Some people will get this meme without a problem, and some people might get some part of it, but what about us who don’t get it at all? fidefortitude on TumblrĬomedy is a cultural thing, and what you find amusing basically depends on your upbringing, surroundings where you grew up, languages you speak and understand well, and so many other things… mommacomms/pagesofkenna on Tumblr
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