Retail Crowd Is Taking Bigger and Riskier Swings
From Tesla ETFs to frothy AI stocks, day traders are eager to speculate.
Whether you look at record inflows into a Tesla ETF or Palantir’s meteoric rally, it’s clear that day traders are eager to speculate.
Investors poured $651 million into the Direxion Daily TSLA Bull 2X Shares (ticker TSLL), marking the largest weekly inflow since the fund’s 2022 debut, according to data compiled by Bloomberg. The biggest chunks came in Thursday and Friday.
And in the AI space, investors are hunting for the next Nvidia-like play as tech giants keep spending heavily on computing infrastructure. (Just look at Zuckerberg’s new effort to micromanage an new AI project that the company is doing alongside a planned multi-billion dollar investment in Scale AI.)
Palantir has soared 75% this year and now carries a valuation of 71 times estimated sales, making it the most expensive stock in the S&P 500. Coreweave, which rents cloud-computing capacity, has quadrupled since going public in March.