The Power of Retail Investors is Increasing

Retail Investors: The New Force of the Market

Retail investors have significantly increased their power over the stock market in recent years. Dan Ives, managing director of Wedbush Securities, stated at an investment event organized by Yahoo Finance that retail investors have reached a higher level in the financial world.

Ives said, "Retail investors are now at the adult table. They are in the spotlight." In major companies like Robinhood (HOOD), Palantir (PLTR), and Tesla (TSLA), retail investors often act with a high level of knowledge. Ives expressed that he has observed retail investors often outpacing institutional investors.

Palantir, Ives said, "Institutional investors start crying when the stock hits 100." In the post-2020 rally, retail investors once again demonstrated their strength. The stock of GameStop (GME) rose by 2,500%, putting institutional investors in a seriously difficult position.

Melvin Capital and other hedge funds incurred significant losses during this process. Hedge fund manager Eric Jackson noted that the market is increasingly paying more attention to retail investors. Companies focused on retail, such as Opendoor Technologies (OPEN), saw their values increase by 470% annually.

Jackson stated, "Institutional investors lose confidence when they see certain stocks skyrocketing, but retail investors don’t miss these opportunities." Palantir CEO Alex Karp emphasizes the importance of engaging with retail investors during earnings calls.

According to Ives, retail investors are no longer in a leading position in terms of information in the market. Ives expressed that this class of investors is significant and conscious, stating, "They are in the spotlight."

retail investor, stock market, finance, Dan Ives, GameStop, Tesla, Palantir