Is the European version of the "Meme stock frenzy" coming? Retail investors are gathering to fight against hedge funds shorting.

According to the Financial Times, a handful of European stocks have become a battleground for retail traders and hedge fund short sellers, reminiscent of the "meme stock frenzy" that swept Wall Street during the new crown epidemic. Shares of companies including German defense stocks Renk Group and Hensoldt and French satellite company Eutelsat have surged in recent weeks, far outpacing the overall rally led by the defense sector, as investors expect a sharp increase in military spending across Europe. Small-scale traders, who sometimes coordinate their actions on social media forums like Reddit, fueled the rally by deliberately buying stocks shorted by hedge funds like Marshall Wace and Millennium, analysts said. Roland Kaloyan, equity strategist at Société Générale, said, "There is a structural shift taking place in Europe. He likened the recent general interest among retail investors to the meme stock frenzy of 2021. But Europe's recent stock price movements have not been as extreme, and their valuations have not reached the level of GME.N. However, Kaloyan said that the mechanism involved in the short squeeze instigated by retail investors was the same as that of the meme stock frenzy at the time.