more news on gamestop.p saying they have got a request from the s.e.c. for voluntary production of documents. this was on may 26th they say this was a request from the s.e.c. for information concerning trading activity. an investigation into trading activity and securities securities here of other companies. they say they are in the process of resuing that s.e.c. request and producing those documents. they say they intend to cooperate with s.e.c. staff. close here saying the inquiry is not expected to adversely impact the company. back to you. >> kate rooney, thanks en thou, i am sure that is not a surprise we know in a the s.e.c. is digging around on what has been happening with retail mania. what about the way the company has just handled the rise of the retail reddit trading army and the embrace of their stock how we have a cop. now we have adam aron going at it from a different strategy, and some of the other ceos what do you make of the way they dealt with it, the share offerings and the lack of public

sherman joined gamestop back in april 2019 a few months after the company failed to find a buyer gamestop'sth ceo since 2017 and he also pledged to turn the company around and the company reduced costs and debt while there, but revenue fell by more than $1 billion in his first year alone, and losses topped $680 million in the past two years combined guys, sherman's not alone. three other executives including cfo with that same accelerated vesting period question now, will they sell guys, back to you. >> wow quite a development, kate. appreciate that. >>> peeking of which, one group of executives leaves, another crop comes in and all from the same place we just told you gamestop named matt furlong ceo and a new cfo both previously worked for amazon's consumer business those counting, five former amazon executives in the gamestop sea sweep.cto and a spl proprietary tool calmed ly linkedin the search beginning typing amazon in the search bar de, years ago ge executives figured they wouldn't help run the company, highly courted by other management to come run their business clearly a generation

coming up, gamestop ceo.berg. ♪ emily: a company has tapped sophia to help run its ipo's. each expects to offer 5% of its shares via the platform. gamestop has announced hiring two former amazon execs to lead the company. let's get more on the developing story. what do we know about these two new hires? >> one ran the australia business. they have talked about how he is seen a rapid growth there from amazon and they wanted him to bring the e-commerce experience that gamestop is moving toward. not just by doing more online, but changing the offering into products and services that they are selling. a similar story with the ceo -- he was the cfo of amazon prime. these are really well-known guys but they have experience. one was at procter & gamble before amazon. the biggest take away is the new man at the top. it was the current ceo last call and he kept it brief. 11 minutes, he said his peace and he was out of there. emily: he wants gamestop to compete with amazon so i guess is one approach. gamestop also disc

gamestop is up 1500% so far in 2021.all street analysts stopped covering the stock in recent months. this rally has been driven by the meme stock traders. staff from the sec have been scouring social media for months, trying to work out what has been going on. they said at the end of their statement that this inquiry is not expected to impact adversely. emily: we have been waiting for this call, this earnings call for some time, to see what ryan cohen has had up his sleeve. you have been listening in. what have you heard, there is a lot of momentum behind gamestop, a lot of love it and there are a lot of folks who say this stock is not. worth it ed: for all the frenzy around the stock, it was incredibly adult earnings call. 11 minutes. the real focus of the chairman was on financial prudence. the company paid off its debt early and boosted its balance sheet. it focused on the transition away from brick-and-mortar stores that sell video games, consoles and memorabilia to a much wider range of services. it will offer 5 mil

more than gamestop. why is gamestop issue in and amc not? >> there's a little bit of vagueness.hey are ranked based. they rank u.s. companies that share certain criteria by market cap. on that day they set the criteria for who is going to be in the russell 3000 e, the total cap index. from there they do incremental changes to the index each week until they get to those rebound states or reconstitution dates. that's when the final changes made. it's not clear if amc will meet the criteria or not given what we know. taylor: about 24 hours ago, caroline and i were having a conversation with the ftse russell benchmark. helping walk through what some of these reconstitution's and rebalancing's mean. when our conversations was what this is mean for volatility -- was, what does this mean for volatility? the more big the stocks get, what does that mean for volatility in these indices going forward? >> we did a little bit of work on that as well. i don't think it's going to be a huge difference. if you remove the 26 stocks we think are going to make it out of the russell 2000 and into 10

gamestop shares taking a tumble today. but the company sharing few details about the turnaround planned. it will have the latest, next. this is bloomberg. ♪ emily: a stock drop and an unclear strategy, the recent story of gamestop. the retailer tapped a pair of amazon executive to lead the country. it may sell millions of additional shares to convert the videogame chain into an e-commerce powerhouse. it did not seem to sit well with some current investors. others were clearly excited, but shares falling 27% on the day. michael pachter is with us to talk about the moves. how hopeful are you about this new amazon team? michael: i am pretty impressed by them. we haven't been told the strategy, but clearly it's to expand the e-commerce offering. recent the one of the new hires -- and every single one of the new hires have an e-commerce background. three from amazon. very capable executives. to his credit, running a $20 billion company is probably a bit more complex than running a $300 million company. he is out with the old, i

this is a different dynamic than gamestop. even across the earnings stories , the idea they are and bracing them. this is something that we have seen in other parts of the world. china is well known for retail mania and volatility. it looks like it is becoming more and more part of the american story. romaine: when was the last time you were in an express? kriti: i can't admit that in good faith. joe: did anybody talk about the jobs report today? kriti: that is part of the story. a lot of it will be positioning, but there is a wait and see element that amped up the chatter a little bit more. romaine: thank you for helping us break it down. we will catch up with you soon. coming up, we will focus is on crypto and discuss this with the ceo of a platform that allows traders to trade. he is joining us next. this is bloomberg. ♪ joe: it is time for the business flash timelines -- headlines. united airlines placing the first order for boom technologies supersonic aircraft. united will buy 15 jets, valued at $3 billion. the airplanes

sec was looking into trading activity in gamestop.he company says the inquiry is not expected to adversely impact the company and they are cooperating with the request. joe: coming up, summer travel eyeing a comeback with pandemic restrictions easing across the globe. and look at the return of international travel, next. be sure to stick around after "what'd you miss." i will be speaking to senator elizabeth warren at 5:10 new york time. this is bloomberg. ♪ rg. ♪ romaine: gamestop shares are down in the post. some of this decline seems to be tied to a headline crossing the wire right now. the company saying it received a request from the staff of the securities any change commission in the u.s. regarding the trading activity going on in the company. it had the wild january where the stock just skyrocketed. the company saying the inquiry is not expected to adversely impact the company. it is cooperative with the process. caroline: many other meme stocks down. it's turn our attention to travel. the european union approving the use of q

gamestop, crypto, and more. plus -- and the winner is?hance to join jeff bezos on blue origin's first passenger flight. we will have the details, coming up. this is bloomberg. ♪ (announcer) back pain hurts, and it's frustrating. you can spend thousands on drugs, doctors, devices, and mattresses, and still not get relief. now there's aerotrainer by golo, the ergonomically correct exercise breakthrough that cradles your body so you can stretch and strengthen your core, relieve back pain, and tone your entire body. since i've been using the aerotrainer, my back pain is gone. when you're stretching your lower back on there, there is no better feeling. (announcer) do pelvic tilts for perfect abs and to strengthen your back. do planks for maximum core and total body conditioning. (woman) aerotrainer makes me want to work out. look at me, it works 100%. (announcer) think it'll break on you? think again! even a jeep can't burst it. give the aerotrainer a shot. pain and stress is the only thing you have to lose. get it and get it now. your body wi

. >>> plus gamestop stock move loeger after the company reported results and named a new ceo. gamestop's call just getting under way we'll break in with any big headlines. >>> and later, why karen thinks there's a real opportunity in this online retailer, that name straight ahead we start with inflation warning, signed, sealed and delivered, ups falling 40% with market outlook below expectations, looking to ring the alarm on rising costs -- rates fall today with ten-year yield dropping below 1.5%. who is telling the real story on inflation, company like ups and others warning of pressures recently, or the bond market saying everything is just fine dan what do you say? >> it's like what tom lee said the other day, bond market sniffed this out long ago, fears of inflation expectation is what we're looking at here. and i think you want to go with the wonned market the bond market, it's one of the major expectations when you look at yields you look at the conversations ups is having, you said we know that a lot of companies on their q1 call said inflation, inflation, inflation, bu

here is the gamestop news we were referring to. shares pulling back a little this morning i didn't see it. it was above 300 as people hold it it's down, as you can see, 21 points back below 300 the company says sales rose 25% in the recent quarter. the loss reported was 45 cents a share. the street was looking for 84 cents. beat by a wide margin. revenue was up by expectations the company declined to provide an outlook and filed a prospective with the s.e.c. to sell shares of stock it will use money for general purpose. >> you think that is what is spooking people or no earnings the reason they have revenue at all is because of playstation and the consoles which you cannot get anywhere. they are all sold out. do you see the sales of games for them down down 5%. while the industry is up 14% >> i wouldn't call that -- i'm not looking to figure out something that's wrong when i see it at $281 i wonder what the end-game looks like. >> right >> i don't know. we've given up on trying to figure it out. >> trying to figure out the stock. y

we went through gamestop before. romaine: you got stomped out of gamestop.no, that bill -- no, ve t bill had gamestop. i don't want to ask, do we even know what doge is doing this morning? lisa: amc is now more valuable than over half of s&p 500 stocks. it really raises the question of the meaning of fundamentals. how do you understand this? romaine: seven months ago, this was probably one of the smallest stocks, now pretty much at the top of the board. tom: we will have more on this through the morning and through the close. much more coming up, including our conversation with william dudley of the new york fed. economic data and less than one hour. michael mckee with perspective on two jobs statistics, adp and claims. on radio and television, this is bloomberg. ♪ wanna help kids get their homework done? well, an internet connection's a good start. but kids also need computers. and sometimes the hardest thing about homework is finding a place to do it. so why not hook community centers up with wifi? for kids like us, and all the amazing things we're gonna l

we put companies like gamestop and blackberry into some of the thematic portfolios last year with 2% allocations, something like that. by i think february gamestop got to be 25% of the portfolio so we were able to take advantage of that and rebalance it back to 2 but you're right you go is gamestop really worth what it is and we think that -- i have seen irrational marks behave irrationally than the fundamental players can be solvent. >> what brought you into gamestop in the first place? let me ask you that. was it because you thought there was a legitimate business there? it was notgoing to be the next blockbuster and go away and go out of business? >> right so what we -- one of the themes we have, nine themes and one is future consumer and look at where they generate revenues and because of the bulk is generated from gaming, gaming being an evolving and continuing to accelerate theme in the consumer it was in there. i think if, for example, that becomes less of a revenue play orb it gets too small it is kicked out of the portfolio and replace it with something else but what we want

dow on pace to snap a three-day losing streak the dow up 85 points, but the original meme stock, gamestop, under fire after revealing the sec is sniffing around for abnormalities in the trading of its stock, even as the company plans to sell more, and of course, we'll have the floor show and charlie gasparino all here to analyze the very latest developments in that, meantime worker shortage, the ceo of citrix will be here to reveal results of a new survey about what millennials want in a job. maybe not the office, so does that mean the virtual workplace is here to stay? we'll get into it. plus the marquette ceo is here the day after his payment processing company made its debut on the nasdaq. it has been a wild run for mark etta, and president joe biden practicing vaccine diplomacy with british prime minister boris johnson ahead of the g 7 summit we will have the very latest on the president 's first full day on his first overseas visit. but first, this afternoon, that original meme stock favorite game stock, we've talked about it so much taking a hit today as you can see down 26% after t

so far, the losses have climbed to $7.3 billion for gamestop short-sellers.ainst amc. dom, back to you >> so, kate, i mean, clove ore i say this because clover is backed by none other than social capital ceo turned spac star thomas p-- that he's involved in >> yes, yesterday was a big day for chamath. in that clover stock, they took through a blank check merger that is now worth $680 billion that is on paper the big question, will he hold on to his lockup period. one of the big questions will chamath and social capital hold on to shares and sell as they did in march for virgin galactic one headline called him the pied piper of spacs he's almost a celebrity when it comes to taking publics in this way. a huge day for sofi, virgin galactic and as we mentioned, clover, for example, underperforming since february there are headlines, one short is seller's report hit and potential issues with the doj. they came out against that shares have recovered. so, he is making up ground for the losses he suffered in february >> we'll see if the hands are diamond or cubic zir

amc was $2 per share gamestop was an outliar.is trading at $20 a share all of the names blackberry and bed, bath & beyond and nokia that is all around the sweet spot to discover the next meme stock, it has to have the entry point where someone who is thinking this would be a waste of money what the hell? it's $2 a share. let's go for it. anyone who did that with amc in january, they are very happy today. >> yeah. by the way, i'm happy for these people you know, you place a bet. how much money you have. you iimply, peter, a lot of this is money people can afford to lose with the stimulus check or whatever it may be a couple bucks i'll buy a couple shares if i lose it, i lose it. now they are sitting on $20,000 or $30,000 good for them. i want to know what the next one is going to e. >> wouldn't we all that is supposition on my part when i say amc is different from the rest of them think of 448 million shares of amc in existence and the turn of 420 million shares this is not buy and hold where people are anticipating that amc will

neither is gamestop.ight now, they could keep going up a lot more, but at some point if an amazon can go down 95% with revenues doubling, you're going to have a real problem in names that aren't going to change the world and it's just a matter of time and being patient. >> if amc and gamestop don't change the world or their industries would you allow that they may at least change the way that companies communicate with their investor base do you think we have seen ceos speak to the retail investor the same way adam aron goes to them and elon musk is that a trend that could be here to stay >> social media starteded that trend. if you go all the way back, netflix, reed hastings has been great about putting out interviews on the internet this has been going on for a while. why we're talking about this you have stocks, gamestop started before the pandemic at $6 and now $250 if i'm a ceo looking at that, how can i do that and raise money at those kind of valuations it's ridiculously cheap money, right. your jo

we don't know what gamestop is planning amc wants to be the most powerful movie theater chain in the world. perhaps part of a larger hospitality theme and maybe adam aaron gets it from the resorts, star ward hotels and norwegian cruise lines to say nothing of a successful ownership stake in the 76ers where he trusted the process that has him in the playoffs so many professionals are on vacation, making it easier for home gamers to really assert themselves if not take over. the new york stock and change is real and symbolic functions and offerings, at least the ones versus the nasdaq and a feeling of tremendous excitement as traders crowd around the post of where the offering is to figure out what it will open at we're at pose nine once a hub of trading. we witness the principles of companies ring the bell if the promise is comical what i love today suggests the pandemic may be waning people jawboning over the price of goods on a day like today that means giving traders big acokoccountsa picture what a stock looks like and people willing to pay higher prices you can't give secrets in

it reminds me of the days we saw gamestop rally big, but gamestop is no longer the darling of wall streetets some mentions, for sure. it really is about amc. it's our stock of the hour and it shows little signs of stopping this incredible run. dave, i am still perplexed as to why this company which has helped amc out for a long time now would then turn around and tell customers that it is undervalued. it doesn't make a lot of sense. dave: you mean overvalued. that hasn't stopped amc from taking off today. it is been building for the past week and a half with shares having more than doubled last week. you can make the case that now that we're getting past the memorial day weekend, that people are starting to go back to movies, the big-budget films are coming back. that is what has brought about the excitement at amc. in terms of stock performance, it has supplanted gamestop as the company among those amateur traders. that is the thing. you are talking about a company that if it weren't in the s&p 500, it would be in the top half as far as bargain value. it shows you how much has changed in

we have first-quarter earnings out of gamestop.he caveat is that about half the number of analysts are now tracking gamestop since the retail frenzy. haidi: let's get to our bloomberg scoop. the group has pledged to add one billion doses of the covid vaccine. they have pledged to end the virus by the end of 2022. shery: meanwhile, the imf moving ahead with a massive plan to reissue reserve assets to help the global recovery. i spoke to a managing director during a livestream event on the future of health care about how poorer nations will benefit. >> we are very much on track. the g7 seems to have confirmed that from the perspective of this sizable group of countries, this is going forward. we are looking into ways in which we can direct some ideas from wealthy nations to those that so much need help. we expect by mid august to have the governments voting on $650 billion. for those who may not have hurt -- heard much about it, this is a reserve we create on the strength of our membership. it is the largest in the history of the imf

gamestop, the stock that started this all, short interest fell by 9% 126,000 shares borrowed. million return and cannabis company sun dial 4 million shares borrowed, 20 million returned jeff mills, thoughts on any of those stocks we just talked about? >> i think you would be crazy to short amc or gamestop here the fundamentals obviously are not the driver i think these retrail traders can keep the prices high for a long period of time. they're the anointed ones. when you start talking about other stocks there ends up being a coordination issue and more capital is spread out it's harder to sustain higher price you saw it in clover, wendy's, sun dial, these big pops, but they don't stay, they retreat, i think that's the issue when you start talking about other names, it creates an opportunity for short sellers because there isn't enough volume to keep the price high. >> yeah, i would just add listening to the gentleman before, they're talking about these positions that they're long, very focused on them, spending a lot of their time, resources and capital on, institutions don't

later we're live in texas at gamestop's annual shareholder meeting. carl >> jon, also ahead this hour the street starting to make calls on big meme names like coinbase, even wendy's today and the ceo of unipath as that company reports its first earnings since going public >>> looking forward to that interview. guys, we start with the spacs, are they back. clover health climbed 86% yesterday. volatile again today about 4% thanks to the surge, the initial $16 million investment in the spac was worth $682 million as of the close amid these types of rallies, companies line amc and gamestop have raised new capital from their shareholder base benchmark partner bill gurley yesterday told us that this was ingenuous. have a listen. >> they're actually i think quite ingenuous from a capital formation, capital raising standpoint once you've scared the shorts out of the market you don't really have anything to balance supply and demand if you just have over base demand for the stock. these two companies at the top of your list, probably would have been brupt and

, when that happened, i think there were kamakaze shareholders that recognized gamestop was trading at crazy valuations but they had the joy of really putting it to big hedge funds and seeing them in pain and it was worth it if they were going to lose money so there's that element. there's that guess, maybe an altruistic amc element here. i just can't believe that ultimately the gravity of fundamentals and free cash flow, i can't believe that that doesn't ultimately come into play and you know, aaron's telling you that. >> right back in march guests came on this show after slapping a penny price on amc share saying there would be no way it could pay down the debt. since have raid $1.2 billion in equity and added $30 billion in market cap let's bring in rich great to have you with us i know u. have a model you're going to stick with your model same time, has anything changed? has amc at least given itself a small lifeline to sort of navigate the very, very rough waters of this reopening >> well, let's just step back and i want to address something that you and the "fast money" team were

coming up on "daybreak asia," gamestop declines after announcing a shakeup.e have the details, next. this is bloomberg. ♪ shery: gamestop something in after-hours trade with plans for another stock sale not sitting well with investors, down more than 6% at the moment. the company disclosed an investigation into its recent trading activities and announced a c-suite shakeup. our markets critic joins us for more analysis on this. another stock sale, investigation and shakeup, not adding to a positive outlook for the stock. >> not really and it is interesting. gamestop is taking a page out of the amc playbook, saying that embrace this retail mania and use it as another fundraising opportunity. 5 million shares is how much they could be issuing to make that veil. the question is, do investors play along? do they rally the stock, knowing that gamestop is going to capitalize on it? you also mentioned a shakeup. two new members of the c-suite, both amazon veterans, really bolstering the case for that e-commerce vision that ryan cohen has for the company. >> of course

i think they should, mentioned that earlier with disney gamestop is down $100 from recent highs need around ryan cohen has brought in crackerjacks but need to transform itself now can't hold on as brick and mortar videogame retailer. doesn't work betting can use the meme wave to remake the business but no insight what that may be tiny series of best buys maybe no desire to give us one, maybe don't have one just spitballing all day don't know if meme playbook will work with amc and gamestop but branching out, they crushed everyone who listened to them. only have enough firepower to prop up a couple of stocks at most i think nothing more than tough to read eugene o'neill plays the hairy ape, not planet of the apes horrendous picks, and like we used to say, the ice man cometh. i promise to find it just for you on you tomorrow. "the news with shepard smith" starts now >>> an active nfl player kicks down the closet door and the southeast cleaning up, after tropical storm claudette makes landfall i'm shepard smith, this is the news on cnbc. >>> destroyed homes, power outages, and more than

experience amazing at your lexus dealer. >>> gamestop has a c suite, our dom chu has more. >> gamestoproles. ho mike recuepra most recently served as the cfo of amazon's north american consumer business it's not all bad news for the outgoing executives they are replacing. ceo george sherman is going to walk away with more than a million shares of gamestop, worth more than $300 million as of yesterday's close those shares are going to invest when he exits the firm as will the shares of four other executives as well upon their departures a few things of note here on the whole gamestop realm the company formally naming ryan cohen as its chairman during investor day, cohen has been -- yesterday he told shareholders that a new era was being ushered in at gamestop but did not really offer many details on that strategy. some analysts, though, are honing in on that with baird calling the turn around plan a mystery, and analysts at web bush telling reuters that every day cohen doesn't reveal his strategy, quote unquote weakens the mean in the company's better than expected quarterly results, ga

we saw that in january, february with gamestop, blackberry, other names and it's pretty widely known.ou have to, you do have to put it in a filing every quarter what names you're short. i think it's a pretty easy strategy to start pumping up a stock and force the shorts to cover. so i think generally from an institutional perspective you know, we're benefiting by some of the names that are in some of our longer term thematic strategies and we're just using those gains to rebalance back where our normal weight should job gary k., it is interesting, on monday you actually mentioned the restaurant names were a a wobbly. the reddit crowd was in wendy's way got a downgrade. what is interesting about the wendy's move, all the restaurant names went higher. do you sense there is a broad move here? >> the redditters have a influence. i think more after short-term nature. wendy's is down 12, 13%. i got 100 emails from radio listeners on one stock, clover. it hit 29. back down to 19. my canned language don't be the last one in. all these stocks when said and done will go back to where they came

gamestop down now about 5% on that news.ring from some of these companies after the bell today when they report quarterly results we'll hear from lululemon, five below, crowdstrike and docusign and broadcom all coming back after this esg is responsible investing. who's responsible for building esg into your investments? at pgim, the pursuit is on for outperformance. as active investors, to outdeliver with customized strategies, integrating esg best practices into our investment decisions. as asset managers and fiduciaries, to outserve, with our commitment to better esg outcomes. join the pursuit of outperformance at pgim. the investment management business of prudential. >>> the white house said president biden and senator capito had a successful meeting yesterday. we're joined by mick mulvaney. he's the founder of exodus capital. heidi heitkamp, founding member of one country project also cnbc contributor and, folks, the headlines on this may be a little bit more optimistic than reality politico has a report out suggesting

gam gamestop naming two amazon executives as its new ceo and cfo. that was after voting in chewy cofounder to the board shares are falling as the company plans to sell up to $5 million in shares and disclosed a request for documents from the s.e.c. about trading activity. shares off 8% in pre-market. >>> still on deck for the show, tracking the travel rebound. why the demand surge may not be isolated to holiday weekends alone. a.b. bernstein's richard clark is here to tell us the stocks to watch when "worldwide exchange" returns after this >> announcer: today's big p number $4.4 trillion. that's how much the national retail federation expects total u.s. retail sales will reach this year. that's an increase of at least 10.5% over 2020. ♪ i wish that i knew what i know now ♪ ♪ when i was young... ♪ you need a financial plan that fits the way you want to live in retirement. a plan that can help grow and protect your money - now or in the future. with an annuity in your plan to help cover essential expenses, you'll have the freedom to live the retiremen

gamestop has the market cap of 21 billion down from $25 billion in january overtaken gamestop on theto date mark. mark: free popcorn and a doubling of their investment in one day. what are they saying about the outlook from here? >> there's a lot of concern. it has a heavy debt burden with analysts expecting amc to lose $100 million over the next 12 months. are people going to return to cinemas? even once people are vaccinated, to they want to return to pack cinemas? we still do have the price targets for amc over the average 12 months about 90% where the stock is at the moment. a bloomberg opinion columnist saying don't dismiss this as young, and responsible gamers. there have been ultra-loose policies and risk-taking. the mania goes beyond a casino mentality. anna: interesting comments, making a broader points around us. i know at least one retail investor who used to go for the free lunch. don't underestimate the allure the free popcorn could bring. let's get a bloomberg business flash for you. >> a third seat on the oil giant's board. the private equity investor alexander partner

this is a burst higher when the robinhood craze and the burst of gamestop enthusiasm peaked in februaryround the time once that gave way when blackrock caught up and basically has shown that the buy and hold traders are fully engaged in this market take a look at the volatility index. it will tell you that the meme traders are not necessarily setting the market's agenda in the sense of how jumpy it is a one-year low, and in january and february you did see the spike, once all the gamestop short squeeze it caused distress with hedge funds to cause them to cut the positions and not se seeing it right now. they might come tension with each other and the upshot is the public very, very fully engaged in this market right now. >> so what is -- is there a connection then that you are pointing to between the meme investors, the interactive broker player and the more staid and reserved and conventional player as represented by blackrock? in other words, are one following the other? >> i don't think it's like that. i would say a bull market invites in all kinds and every bull market is a mix of p

gamestop down fractionally. a couple of things to know call this the rbi.p is the biggest holding by far in the russell 2000 short interest on amc is about 20%. a lot of shorts are in there they are not blown out options volume on these and other so-called cult stocks is soaring again. what's old is new again. things to pay attention to if you are going to trade these names. >>> back to markets and money in a moment to the other top stories kristina is back with those. >> reporter: this time we start with breaking news vivendi is in talks with bill ackman regarding the sale of the 10% stake of the music group if it closes, it would be the largest spac to date and valued at $42 billion the spac will distribute to the shareholders later in the year umg has taylor swift and lady gaga as some of the music gr groups vivendi is down .50% >>> facebook will end the policy that mostly shields politicians from the rules that apply to other users. a reversal that could have ramifications for how elected officials use the social ne network. the change which facebook is

but i'm not against gamestop or amc at these levels. gamestop is currently below where i told you to ring the register in january and getting hammered and wake up with a terrific quarter management said they would sell 5 million shares in an at the money transaction you won't notice it frankly if you're in the stock. these companies have the ability to reinvent themselves because higher stock prices allow them to raise capital i like that. if you have written them up for much lower levels, take little off the table. these stories can get dinged like gamestop is doing even though the numbers were good and bringing in a couple seasoned amazon alumnis to run the company. great people there is also an fcc inquiry into the trading of the stock but doesn't sound that serious to me or would have been sent to justice and made 26 and it's voluntarily so i'm not worried suffice to say that nothing i heard will stop the people who like it from wall street bets continuing to buy the shares tomorrow morning now, let's look at yesterday's meme stock

gamestop is also top of the list.ther names that are really in this squeeze issue, that might have a squeeze issue down the line, our beyond meat, virgin galactic, lemonade, bed, bath & beyond, nicola. these are all crowded, and the shorts are losing money. no one exits a winning trade. for someone to get squeezed out, they've got to be losing money. these guys are losing. alix: bed, bath & beyond. i would not have thought that. thanks so much. this is a perfect set up. ihor dusaniwsky, s3 partners head of productive analytics, thank you. this is bloomberg. ♪ ♪ alix:alix: live from new york, i'm alix steel. this is "bloomberg markets." the s&p 500 is bouncing off the lows up th -- the lows of this -- the s&p 500 is bouncing off the lows of the session. dave wilson is here with what could be the next catalyst. dave: one thing is for sure, the stock market has a history of rising after gains similar to what we saw this year. nautilus research ran the numbers. i reproduced them for a chart. they looked at years in which

let's compare gamestop versus chew chewy. short selling hedge funds to their knees by taking the share price up quickly via a blitz of buying call options and common stock at the same time. it worked. and lots of betters made money i say good for them. they won but many of these guys don't seem to understand why they won. in reality what they did is engineered a gigantic short squeeze and they are backing an investor, rain cohen who is gamestop's chairman. he owns a lot of stock in the gamestop originally co-founded chewy, the fabulously successful web based pet food retailer. co cohen's history makes it a sure thing they will be able to turn around gamestop. they returned the team of former amazon executives and think he's ready to roll. i say wait a second. if you idolize ryan cohen because you think he built something incredible at chewy, why not buy chewy which was down badly today. last we have the ceo that talked about how the company is winning on so many fronts with pet foods, health care, even simple things, dog birt

this is not a gamestop problem, it's a, you know, trading problem.t to the naked shorting, i don't think the problem is naked shorting, shorting is a good thing, i mean, we have this balance that goes on. we have people who buy a stock and, you know, they want good things to happen, they want the price to good up, but sometimes the price is too high so how do we bring it back down? shorting is one of the few ways we can get that price back to reality. when it's too hot. >> sure. i don't think anyone is disputing the role of shorting, it's whether or not naked shorting which has been illegal since the financial crisis actually exicstanbuls actually exists and we know it exists or doesn't when so much is traded off exchange and not as transparent i want to get back to s.e.c. looking into traders why would they go after in large part seems to be retaylor traders if you look at what ceo amc sent out yesterday 4.1 million individual investor with an average of 120 shares of amc, this group of people, this cohort doesn't seem like they would have their wea

just look today in gamestop. have the 580 call and the 680 call the 580 call i think is pricing for $3 it expires friday. so for a hedge fund to go out, let's say, spend half a million dollars, throw up a print that 2,000 calls have traded or to go to the 680 which is trading 1.50, put up 3,000 traded there, they create the excitement they're creating the excitement that's enticing retail i think hedge funds are participating in this as much as retail is. let's not lose that premise. >> good point. glade you made it. we will take a quick break >>> we will debate the financials in our call of the day coming you have. do not miss the cnbc "evolve global summit" coming up on june 16th to register go to cnbcevents.com/evolve. we will be back in two minutes (vo) this is more than just a building. it's an ai-powered investment firm with billion-dollar views. a cutting-edge data-security enterprise. yes, with a slide. a perfect location for the world's first one-hour delivery. an inspiration for the next workout cult. a

certainly that is the case with amc and gamestop.ndex is now is not going to be what it is come the end of the month. taylor: i am still trying to teach romaine the difference between mean and median. where are the forecasts relative to the median in the russell 2000? dave: that's an easy one, median versus mean, at least for someone who has been doing charts for years. both amc and gamestop are well above the median for the russell 1000. you see the numbers there. $15 billion compared with $1.1 billion for the russell 2000. it shows you, even if you were to see these stocks fall as amc is doing today, they would still be well within the range to move to the russell 1000. so there go your biggest influences on the russell 2000 because of an index overhaul. romaine: what is the influence on the dow? dave: well, i don't know. we will figure that out when the dow gets reconstituted. actually, that is a good example -- romaine: will he get reconstituted with the meme stocks? dave: i don't know about that, but this a rolling process. comp

maybe amc is jackson maybe gamestop is a glimpse. maybe philadelphia adam aaron, the ceo of amc can take advantage of the real estate stocks and they have a lot of empty space. who wouldn't want a spanking new rent paying cinema in the mall i like the ones that give you drinks and movies. throw in a little dinner tomorrow gamestop reports. the chairman has a lot of flexibility and buy a series of visibility and offer those games free to gamestop's 55 million power up rewards members what if he announces global competitions to currencies and meme potential and that's what gamestop trades on why not become the preeminent seller of the chip boards made by invidia that are the hottest thing being sold in retail right now and a major reason for the semi conductor i have to argue the 55 million power rewards members could be worth billions correctly now i can hear somebody saying cramer, who would be dumb enough to be paid over inflated shares of amc and game stop if the wall street bets keeps buying and there is a perception this has to e

greatly valued than half of the s&p 500 companies, and it's ripple effects, too not just amc or gamestop or bed bath and beyond and some of the specific individual names that we've seen major moves in, it is also stuff like the russell 2000 value index which both amc and gamestop are actually a part of, "the wall street journal" did a good takedown on this last night, actually, just noting that the rallies of those two stocks have helped push the value index to its biggest outperformance versus the growth counterpart for the russell 2000, on record. and that is going to be something to watch as well, because you have that next annual rebalancing of the russ schedule index, the news or the announcements around that will be happening later this week as well so in general, this has had ripple effects to other parts of the market, carl >> yes, your point about the growing list of meme names is actually tallied today, b of a note, guys, they look at the small and big cap names that are getting the most mentions on wall street bet, amc and gme are by far number one and two, and followed by spa

amc is overtaking gamestop on a year-to-date basis, up 400%, still short of gamestop's peak of being up 1700%, but making up ground because, in part, we have seen so much call options in this stock. 2 million calls by thursday. 2.5 on friday. as we learned back in january and february, when a dealer sells a call, they have to buy a little but of the underlying stock to hedge, so they can turn into a feedback loop and we are seeing some of that play out in amc as these gains continue. alix: great. thank you. to d.c. president biden is heading to tulsa, oklahoma later tomorrow the 100th anniversary of the tulsa race massacre, planning to announce policy measures to address the racial wealth gap. more from josh wingrove. what can we expect? >> you can start by commemorating the anniversary of the race massacre. molly parker will be traveling with him. mario has written about what he will announce. that includes additional contracts or spending for small, disadvantaged businesses owned by people of color. and home appraisal, aimed at tackling a problem whereby black owned homes tend to a

there is a plan with gamestop. i suspect gamestop will start to give love from wall street., i don't get it. what is really let investment thesis? >> we'll see. we'll see. bed, bath & beyond now has three sell ratings on it. three or four months ago wall street said it was dead money. last year it looked like dead money. genevieve, that's it. the folks are focusing on names they know. there is a moat todd. there is a certain way of going about finding these. names heavily shorted times with more stocks sold short than even exists. they think maybe the companies come back. if they do there will be a big payoff for them. >> that is true. they see the economy coming back. it has been coming back as you know, charles for some time. they see people coming out, spending money. friend going to the movies again. getting on cruise ships again. some of this may be what you're culturally seeing people feeling good about these companies that they haven't been able to interact with for the past year. so i think people do have to be careful. reality is, you can't invest today you know, ju

we tell partners like gamestop are integral to that.le prefer to buy their hardware and software in person. some people prefer to do things digitally. we -- we are giving everybody options. emily: with the new executive team at gamestop, does that mean you are bullish and what they have planned? sarah: you know, when i look at gamestop i'm excited that their partners of ours, because people love games. and having a retail partner and working all of our retail partners is integral to giving people the experience they want. emily: all right. sarah bond, corporate vice president of gaming ecosystem at microsoft. sounds like it is going to be a busy and exciting holiday for you. thanks so much for joining us. apple is working on the new apple watch, new models and new features. our tech reporter mark berman has the latest edition of "power up." mark: i'm mark berman with "bloomberg technology." and this week's episode of "power up," what to expect from the apple watch year, in the years to come. for this year, for what is likely to be calle

that's one way that you're - >> right >> a dividend on gamestop? >> well, these people by the way, have total contempt, take it from me, and i think that's because i'm actually trying to figure them out, and like wendy's, why did i call nelson peltz, because i happen to like wendy's, i thought the stock should go higher and i wasn't focused on the garden salad, i was focused on same store sales. and that little comment i made, they hate that. >> i know. >> they hate that. and i'm philly, i never threw batteries but snow balls >> my father was hit with an eagles playoff game, buddy ryan, we did not go for five years, but he was hit in the head with a beer bottle. my father passed away. my mother died in 1985, why don't you give her a jingle and see what she has to say. they've got everything. >> they got it all. >> they can go after my mother >> i think you got to keep doing what you are doing and don't let them get in your head. >> i'm convinced if you explain to people what moved this in part, because people are saying wendy's tendies, and wendy's

>> i think one more name i think gamestop some of the attention has been taken off gamestop recentlyhat's being talked about gamestop still a lot of great due diligence done on wall street bets so don't forget gamestop. even though there's other names that have been popping up. >> maybe now we'll see if new management sees opportunities where the stock price where it is thank you. tyler, over to you. >> all right. >>> the dow on the pace for the worst week in eight months which should you buy on the dip? our traders will discuss those potential opportunities next it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. get ready for it all with an advanced network and managed services from comcast business. and get cybersecurity solutions that let you see everything on your network. plus an expert team looking ahead 24/7 to help prevent threats. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. there's interest you accr

that is exactly what gamestop is doing.t is investors challenges the company to do it. what a world if you have got that happening. stuart: the world turned upside down. the wall street world. >> exactly. stuart: that's a fact. brian, stay there. a lot more to come. this, president trump was slammed, big time, slammed on the media suggesting using hydroxychloroquine would help fight covid. there a new study, it may indeed help against covid. the president, former president was right. doc siegel is here to tell us about that. >>> one teacher confronting her school board over their progressive agenda. roll tape. >> do not allow anybody to tell you can't accomplish anything because of your skin color or hate yourself because of your skin color. students it is up to you to be the next generation of victims or victors. stuart: a very eloquent statement of opinion, if you ask me. professor brenberg will sound off on critical race theory. the backlash to it after this. ♪. ♪. stuart: well the rally is holding. i would say barely. t

. >>> what is next for amc and gamestop and other trader favorites?ns market may be a crystal ball one of the options experts is here. >>> it is tuesday, june 8th. this is "worldwide exchange. >>> good morning, good afternoon or good evening. welcome from wherever in the world you may be watching. i'm brian sullivan glad to be back with you on "worldwide exchange. here is how your money and the global markets are setting up their day. stock futures are flat to maybe slightly down. a dow down about 40 points nasdaq on the rise let's call that mixed to flat. that may not be moving a lot, but here is something you might want to pay attention to the transports often seen as a leads indicator the coming off a four-session losing streak. something for you to start watching real estate is looking solid up more than 20% in the past three months maybe not the real estate you think of that sector, right now, is being powered largely by things like cell phone tower makers. crown castle as well as data center providers. that sector has been on the move so, too, h

if you're investing in gamestop, what do you think they're actually going to do to have a significantlace in gaming going forward? is ecommerce going to get them there or as we'll hear from microsoft in a couple minutes. is cloud and streaming going to come in, in such a wave, they're a middleman that gets cut out? >> right and we've talked about this as well maybe you have to get creative with valuations. that's not something that old school, traditional investors really want to hear, but i think that's the new cohort of retail investors, thinking about this creatively, perhaps a gamestop or amc could use the capital raising on back of their surging stock prices to become something that they aren't right now hence that distinction magic beans, maybe, jon. lot oh tickets could be some riskier than others. >> yeah. and then you've got stocks that you don't know what's behind them and you've got ais, snowflakes and others with a big run but technology underlines that how do you value that going forward? we mentioned gme and the gaming space. diving deeper into it. microsoft off a big th

unlike january and february when gamestop was really the marquee name in all of this, that was happeningconjunction with a huge rush into hyper growth tech, into the arc funds that was the real blow off into february of all those strategies, sad stocks, cloud stocks this is not happening in that environment. this is extremely idiosyncratic. no big picture, transformation or innovation story attached really to amc. it's much more kind of out of left field and i think it can coexist with the core of the market being relatively calm >> right, that's what makes is it so fascinating this time around mike, thank you for that that is where we will start with our next guest who is arguing that the move isn't about means, it's about decentralization. tech investor and board c.e.o. joins us now to discuss. david, thanks for joining us and good morning you joke that every public company board is forming a mean committee, but you know, should companies, should c.e.o.s be looking to tap into the rise of the retail investor and the themes that we've seen with amc and gamestop >> yeah, i mean, i think

lisa: there's another gamestop news item from yesterday.hey are going to sell potentially millions of new shares. this is fascinating because they are trying to de-memify themselves. actually raise more money so they can try to update their business model to the amazon era, and this is the question. can this rally actually have some fundamental purpose beyond just a parlor game? romaine: and it already has. how many of these meme stocks were already bankruptcy cases, or just the potential of them may be going bankrupt during the pandemic, and have been saved during this run-up in the share price? they are in a healthier position. there's still a long-term case that may be that business model isn't going to carry them much further, but for now they are any much better position today than they were six months ago. tom: so campers, what is our key take away from this discussion as we move forward to the data check? [laughter] it is the pendulum of de-m emification. [laughter] dow futures up 71. the vix comes in, 17.79. important inflation data