Buzzfeed News

bowtrix Updated   
NASDAQ:BZFD   BuzzFeed, Inc.
Hello friends.

We think that the announcement on the 20th that Buzzfeed News will be shutting down is very bullish since it led many unskilled retail traders to panic sell as the share price plummeted in reaction to the 'bad news'.

The reality is that this news isn't actually bad, since Buzzfeed is just consolidating its Buzzfeed news segment into its Huffpost news segment which will cut costs and allow for lower cash burn in the future. Retail investors only care about how the news makes them FEEL, however, so the news is 'bearish' as far as they care since it seems scary for 'investors'. Usually, when a lot of retail traders panic in a market all at once and the price crashes as a result, especially after a prolonged sell-off, we see a resurgence of the price in order to punish these retailers and convince some of them to buy back in at a higher price.

It's been an entire trading day since the news event occurred, so I would estimate that 90% of panicked retailers who wanted to exit the market have already done so. The effect of extreme selling that eases off as the sellers empty out is a reversal. Expect something a bit similar to the FTX-induced bottom for crypto.

Thanks for playing.
Trade closed manually
I have no idea what that spike was about, but damn! GG. We got out at around 80 cents.


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