CALM is a company producing eggs. One of the farms has been hit with bird flu so production has been shutdown there.
Yet stock price has gone up 9% on the view that the potential egg shortage means that prices will go up. How does this make any sense at all?!
Same as a company (Hertz) having its stock price shooting up in 2020 after filing for bankruptcy.
[sarcasm] This is the new investing paradigm. Get used to it: Patrick Boyle’s Youtube video - ALL IN FLOKI INU [/sarcasm]
On a more serious note, crazes have come and gone since throwing away money has been made possible. Following them isn’t an investing strategy (it’s a lottery playing event). I would not pay attention to that and let it flow.
Edit: my real serious answer is: “there’s a lot of dumb money running around and it will take quite some time (or a big and lasting crash) for it to be meaningfully captured by more skilled investors. Until they do, many things that don’t make sense will happen and some/many will have short/medium or even sometimes long term success.”
Edit2: not directly related (more “venture capital is given away freely to any confident teenager spewing they’re going to revolutionize the world” than “wallstreetbets are pumping meme stocks”) but this other video from Patrick Boyle about Wework is also worth watching to understand the investing world we are living in, in my opinion: https://www.youtube.com/watch?v=n3Q_4vjPMSE
With the popularity of leveraged bets (options), might not even need that much money (so it could be a lasting situation).