"The 'Bond King' Bill Gross recently stated that he is not interested in meme stocks, but he pointed out that the former meme stock king GameStop is now performing more like Bitcoin in the market. (Background: Buffett has net sold stocks for 11 consecutive quarters! Berkshire's Q2 net profit plummeted 59%, and Kraft Heinz wrote down $3.8 billion, becoming a landmine.) (Supplementary background: Investment master Jim Rogers announced he has cleared out of U.S. stocks! He predicts the next stock market crash will be the worst of his life.) Bill Gross, known as the 'Bond King', recently stated that meme stocks like Opendoor, Kohl's, and American Eagle have attracted a lot of retail investors due to their hype on social media platforms like Reddit, leading to soaring prices. However, he expressed that he is completely uninterested in these meme stocks, bluntly stating that these stocks are like 'lottery tickets', with risks so high that one cannot sleep soundly at night. He believes that current day traders have better options, such as Microsoft and Meta, which have seen their stock prices surge by 30% and 25% respectively this year due to the AI boom, making them a much safer bet compared to meme stocks. Opendoor Technologies Inc stock price. Source: Google Finance GameStop is somewhat like Bitcoin However, Gross specifically mentioned that GameStop, which once sparked a speculative frenzy in meme stocks, is now performing quite differently. He stated that GameStop no longer 'resembles a meme stock', with volatility significantly lower than in the past, and its market performance increasingly resembles Bitcoin. He further explained that GameStop's price trend is somewhat similar to Bitcoin's: surging in Q4 2024, retreating in the spring, and starting to rebound in early June. Bitcoin dropped by a quarter earlier this year but later soared to a historic high of over $110,000; meanwhile, GameStop announced at the end of May that it had purchased 4,710 bitcoins worth approximately $537 million, further tying GameStop's stock price to BTC. Once shorted GameStop, making tens of millions Gross is called the 'Bond King' because he expanded the flagship total return fund of fixed income giant PIMCO to a staggering $270 billion over nearly 30 years, a remarkable achievement. Looking back at the peak of the meme stock trading frenzy in January 2021, he boldly shorted GameStop, but at that time, GameStop's stock price skyrocketed, leading to a temporary loss of $15 million for Gross. Nevertheless, he gritted his teeth and increased his bet, ultimately making $15 million to $20 million by shorting GameStop and AMC. Over the years, Gross has also been a leading critic of meme stocks, describing them as 'lottery tickets', with those going long on meme stocks akin to 'fish at the poker table', destined to be cleaned out. He also warned that every meme stock frenzy ultimately ends like a 'musical chairs' game, where investors rush to escape during a market crash, leaving only chaos in the end. In January 2021, GameStop (GME) saw a historic short squeeze triggered by retail investors collectively buying stocks and call options through Reddit's WallStreetBets, countering Wall Street hedge funds' excessive short selling. The stock price skyrocketed from around $17 at the beginning of the year to $347 on January 27, an increase of over 1600%, causing short-sellers like Melvin Capital to lose billions of dollars. This event, driven by retail leaders like Keith Gill (Roaring Kitty), not only exposed the vulnerability of the market's short-selling mechanism but also became a symbol of retail unity challenging financial institutions. Related reports Experts cry foul for Fed's Powell: Why lower interest rates when Bitcoin, U.S. stocks, and gold hit new highs amid a strong economy? Ethereum's version of MicroStrategy: Four major U.S. companies betting on ETH logic and position analysis The conspiracy of tokenizing U.S. stocks: Using 'regulatory dividends' to siphon 'global liquidity'"

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