Did GameStop Make a Meme Stock Billionaire?

TECH IN THE NEWS

#2 Company Globally - Nvidia's market cap topped $3T to surpass Apple as the world's second most valuable company behind Microsoft’s $3.15T.

AI Antitrust - The FTC and DOJ will launch an investigation into Microsoft, OpenAI, and Nvidia over possible antitrust violations. 

AI ‘Right to Warn’ - Insiders from top AI firms signed an open letter urging more transparency and protections for AI whistleblowers.

Space Race - 1. Boeing's new Starliner capsule docked at the ISS with two astronauts & 760 lb of cargo. | 2. SpaceX successfully test-flew and landed its Starship rocket and booster on Thursday.

First Cuts - The European Central Bank (ECB) cut its key interest rate by 0.25%, in its first rate cut since 2019 as inflation in the eurozone cools.

The Texas Stock Exchange - The NYSE and Nasdaq rival had BlackRock and Citadel backing to raise ~$120M and plans to file with the SEC this year.

#BUZZCHALLENGE

New AI LeadGen Tool Identifies Email Addresses of Your Visitors

Capture emails for 40% of your anonymous traffic

• Grow your list way faster than using forms

• Email irresistible offers to prospects browsing your site

• Send more abandoned-cart emails when they don't purchase

Book a demo and try it for free.

THE HOTTEST THING IN TECH
A Meme Stock Influencer Billionaire?

Meme stock season is back as Youtuber Keith Gill aka Roaring Kitty returns to social media after a three-year hiatus, sparking a massive short-squeezing rally. Gill was prominent in the frenzy on GameStop and other meme stocks in 2021, and on Sunday posted a cryptic image on X hinting at his pending livestreaming return, followed up by two more cryptic posts on Monday.

This sparked speculation and a surge in trading activity, with GameStop's shares jumping over 70% on Monday to more than $30. $GME is now above $65, up over 500% since since May 1st. The KobeissiLetter calculates Gill is set to be a billionaire if $GME opens at or above current levels today, with shares worth ~$325M and options worth ~$700M for a combined ~$1 billion - an $850 million gain on his position. $GME, short sellers on the other hand it calculates have lost $2.1 billion today and counting.

Party Like it’s 2021

This resurgence echoes the meme stock mania of 2021 when Gill and other influencers caused havoc for hedge funds short-selling companies like GameStop with challenging fundamentals. It highlights the growing influence of retail investors in the financial markets with the combination of easier access through platforms like Robinhood, with the viral nature of social media and the “meme culture” of crypto trading. Speaking of crypto, a Solana-based purely meme token (ie not a derivative), GME, is up over 3,000% since mid-May and has a $120M market capitalization.

Game Over?

The 2021 meme stock season led to increased regulatory and legislative interest, with the SEC monitoring the situation closely. It also had a direct impact on Robinhood, with market volatility leading to temporary trading halts and restrictions on meme stocks, which sparked outrage among retail investors and led to further scrutiny of trading platforms' practices. The WSJ reported last week that E*Trade was considering banning Gill amid concerns his social media actions could amount to market manipulation.

So despite 2021’s discussions about market manipulation and the need for regulatory changes, here we are three years later and nothing seems to have changed. E*Trade has already “halted” trading on $GME a number of times, and no changes seem to have been made to protect retail investors’ rights.

#BUZZCHALLENGE

Only a couple days left to invest in this smart home startup.

The ball-park isn’t the only place to look for home runs. Best Buy has a proven record of placing early bets on home-tech products that go on to dominate the market.

• Ring - acquired by Amazon for $1.2B

• Nest - acquired by Google for $3.2B

Early investors in these companies are sitting on some serious returns - but for the rest of us, there's still a chance to get in on the action with RYSE.

History tends to repeat itself, and RYSE's launch in +100 Best Buys points towards their company being the next home run.

Their Smart Shade tech is poised to dominate an industry growing at 50% annually, and there's still time to invest in their $1.50/share public offering.

The window to invest is closing - learn more here.

FOR EMPLOYERS
Job Candidates

Request an intro to candidates -  [email protected].

1. Software Engineering Leader, providing AI solutions. Ex-StoneRiver Enterprise Architect, Arthur Andersen Sr Manager. Arizona State CS degree.

2. MRI Software Engineer, ex-Epicor Product Developer. Built Chatty, BookStore, and JOTE projects. Nitte Meenakshi Institute of Technology BE in CS.

FOR INVESTORS
Open Deals

Request an intro to founders - [email protected]

PS: A new wave of deals is arriving shortly. Stay tuned!

1. Drug Development - New York - Non-addictive, non-opioid drug to treat 500 million people with chronic pain. $5.4 million in NIH grants, studies published in peer-reviewed journals. Raising $15 million via SAFE. (Seed+)

2. AI Agent Employees - New York - Sophisticated workflow automation for businesses, by a previously-exited founder. Building towards fully autonomous organizations. Backed by Tribe & Kenetic, rolling out to extensive waitlist. (Seed)

3. Outbound B2B Campaign AI Co-Pilot - Lexington, MA - Turn any CRM into an AI optimized sales agent for personalized customer campaigns. Founder previous exit to PE. Notable Angel on board. Top Hubspot App. Post revenue. (Seed)

TRENDING TOOLS AND BUZZY TECH
Tools

Asana - "AI teammates" automate work tasks, improve productivity.

Zoom - Wants to create AI "digital twins" to attend meetings for you.

X - New ‘video-only’ feed to target TikTok, Youtube, Reels

Meta - To test Whatsapp AI assistant for businesses to sell products.

Tech

World's Largest Supercomputer - xAI’s unit to be located in Memphis.

Antibiotic Resistance - AI model predicts ~1M new potential antibiotics.

Humane - Recalled its AI Pin device’s charging case due to fire safety risk.

DEALS WE’RE WATCHING
Closed Deals:

$5B Valuation - Canadian Enterprise AI startup Cohere raised $450M  from Nvidia, Salesforce, Cisco, & Canadian pension fund PSP Investments.

Laser Nuclear Fusion - Denver startup Xcimer Energy raised a $100M Series A backed by Breakthrough Energy, Prelude, & Emerson Collective.

Deals to Watch:

ByteDance - Aims to raise between $700M - $800M for its online auto marketplace business, Dongchedi, ahead of an IPO. The round is led by HongShan (fka Sequoia Capital China) joined by KKR and General Atlantic.