Responding to extreme volatility and speculation

It’s hard not to be fixated by the extreme volatility in today’s markets, in particular around the stock prices of companies like GameStop, AMC Entertainment, and Bed Bath & Beyond. These swings are a feedback loop created by speculators seeking profit off of fleeting prices through short interest mechanics that increase volatility, not the actual corporate value of these companies.

Recent activities underscore why it’s critical for companies to have a strong base of long-term investors, those who invest in a company’s success and the value they deliver to all their stakeholders — shareholders as well as employees and communities.

Long-term investors have learned to ignore noise, bumps, and the speculators. They prioritize how the company creates ongoing value over managing a stock price crisis that can be manufactured by the microsecond.

LTSE offers a public market option focused on creating mutually beneficial relationships and sustained value. It’s why our solutions are concentrated on long-term alignment over optimizing for trading frequency and volume.

Recent events are harmful to many, including company employees, local communities, and emerging investors who see no benefit from such volatility. We aim to lead by prioritizing a broader set of stakeholders, and creating an ecosystem that is more resilient to short-selling activities and the market gyrations.