The SEC’s effort to inform the public about the potential pitfalls of investing in so-called “meme stocks” angered some Redditors this week — with users of “Wallstreetbets” and other boards grumbling that the agency was hypocritical and out of touch. was outside.
The SEC’s 30-second video titled “Meme Stocks” features a comedic sketch based on a fictional game show. A competitor attempts to invest in meme shares, only to find their money missing and a pie to hit them in the face.
Another competitor says they are “going to do some research” before investing – prompting the first competitor to ask, “Can we do the research?”
The video, which has garnered nearly 200,000 views on YouTube, spawned a series of Reddit posts on WallStreetBets, a popular board for retail investors, and Superstock, a site focused on one of the original “meme stocks,” GameStop.
“Whoever made or decided to post that video should be fired. The thought process behind this is out of this world in his thinking, if not explicitly spotlighting government corruption,” Wallstreetbets user Thorbins wrote in a post titled “A Message to the SEC.”
“The entire market is a meme stock to be labeled small- to mid-cap stocks, as meme stocks are themselves manipulated through denting,” the post said.
“SEC Video makes me want to double down on MEME Stonex,” wrote another user on the Wallstreetbets Reddit board.
A third wrote: “No chance of less memestock as a result of this BS video [sic] Business. Chances are they will have more results.”
The SEC’s “Meme Stock” video was the latest entry in its “Investomania” video series. The agency said the series of public service videos “uses the game show concept to educate investors in a playful way that investing is not a game and that they should do their due diligence when making investment decisions.”
Previous editions of the series have included videos on cryptocurrencies, margin investing, and “easy money”.
The SEC did not immediately return requests for comment to Reddit threads.
Barron was the first to report on the backlash.
Meme stocks like GameStop and AMC rose during the COVID-19 pandemic, but have declined in recent days during a downturn in the broader market.
A recent analysis by Morgan Stanley found that retail traders have on average lost almost all of their gains since 2020. Another study by Goldman Sachs showed almost similar results.
The cryptocurrency has been under similar pressure, falling from pandemic-era highs and draining the reserves of some retail investors betting on the digital token.