The tide continued to turn for the worse for bear market investors. The public knew famed short-seller Michael Burry, best known for his bet against the housing market during the financial crisis in 2007.
In the time after that successful trade, Burry’s bearish bets often did not play out. Unfortunately, he likely underestimated the power of the momentum mob traders. Since the Covid lockdown, meme trading ideas shared on Reddit’s (RDDT) WallStreetBets have let weak firms rise irrationally. In addition, the central banks, such as the Federal Reserve, increased M2 money.
The excessive M2 money fueled inflation. It also hurt fundamental analysis, since broken firms could trade at high prices for many years.
In the telecom sector, Verizon Communications (VZ) announced that it would cut around 15,000 jobs. The company is facing a smaller addressable market for new customers. It must offer inexpensive mobile plans, while cable operators add supply to the market. This cut represents around 15% of Verizon’s total staff count.
Investors should avoid Verizon. The job cut might lead to worsening service quality and declining customer service levels. That would accelerate a decline in customers.
Nvidia (NVDA) fell by a modest 3.58% on Thursday. Since August, the stock has formed a rally zone in the $180 range. Nervous investors took profits ahead of its earnings report set for November 19, 2025.
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