"Bond King" Bill Gross: Stay Away from Meme Stocks! But GameStop is Now Like Bitcoin

"Bond King" Bill Gross recently stated that he is not interested in meme stocks, but pointed out that the former meme stock king GameStop now performs more like Bitcoin in the market. (Background: Buffett has net sold stocks for 11 consecutive quarters! Berkshire's Q2 report shows a 59% drop in net profit, Kraft Heinz writes down $3.8 billion becoming a landmine) (Additional context: Investment guru Jim Rogers announces he has liquidated all U.S. stocks! Predicts the next stock market crash will be the worst of his life) Investment guru Bill Gross, known as the "Bond King," recently mentioned that meme stocks like Opendoor, Kohl's, and American Eagle have been heavily speculated on social media platforms like Reddit, attracting a large number of retail investors, causing their stock prices to soar. However, he expressed that he is completely uninterested in these meme stocks, bluntly stating that they are like "lotteries" with risks so high that one cannot sleep peacefully. He believes that day traders currently have better options, such as Microsoft and Meta, which have seen their stock prices rise by 30% and 25% respectively this year due to the AI boom, making them much more stable 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 speculation frenzy for meme stocks, now performs quite differently. He stated that GameStop is no longer "like a meme stock," and its volatility has significantly decreased compared to the past, with its market performance increasingly resembling Bitcoin. He further explained that the price movement of GameStop is somewhat similar to that of Bitcoin: a big pump in Q4 2024, a fall in the spring of this year, and a rebound beginning in early June. Bitcoin saw a drop of one-quarter at the beginning of this year, but then soared to over $110,000, hitting an all-time high; meanwhile, GameStop announced at the end of May that it had bought 4,710 Bitcoins worth approximately $537 million, further tying GameStop's stock price to BTC. Formerly shorting GameStop made millions Gross is referred to as the "Bond King" because he has expanded the flagship total return fund of fixed-income giant PIMCO to a staggering $270 billion over nearly 30 years, achieving impressive results. Looking back at the peak of the meme stock trading frenzy in January 2021, he boldly shorted GameStop, but at that time, the stock price of GameStop skyrocketed, and Gross incurred a loss of $15 million. Nevertheless, he gritted his teeth and increased his bets, ultimately profiting between $15 million and $20 million from shorting GameStop and AMC. Over the years, Gross has also been a leading critic of meme stocks, describing them as "lotteries," and those going long on meme stocks as "fish at the poker table," destined to be cleaned out. He also warned that each time the meme stock craze ends, it will be like a "musical chairs" game, where investors will scramble to escape during a market crash, leaving nothing but chaos behind. In January 2021, GameStop (GME) experienced a historic short squeeze due to retail investors collectively buying stocks and call options on Reddit's WallStreetBets to fight against Wall Street hedge funds' excessive shorting. The stock price soared from about $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 vulnerabilities of the market's short-selling mechanism but also became a symbol of retail investors uniting to challenge financial institutions. Related reports Experts cry foul for Fed's Powell: Why lower interest rates when Bitcoin, US stocks, and gold hit new highs, and the economy is doing great? Ten questions and answers about Ethereum's micro-strategy: Analysis of the logic and holdings of four major US companies betting on ETH The hidden agenda of tokenization in US stocks: Siphoning "global liquidity" with "regulatory dividends". This article titled "Bond King Bill Gross: Don't Touch the Meme Stock Craze! But GameStop Now Looks Like Bitcoin" was first published on BlockTempo, the most influential blockchain news media.