This year a new frenzy has been unleashed on the stock market by retail investors on Reddit that has seen many unheralded stocks making enormous and the most famous example this far is the GameStop Corp. (NYSE:GME) stock.
The video game retailer may be looking to move into e-commerce but many experts believe that the historic rally in the stock is not going to last for too long. The short interest in the stock had been exploited to create a short squeeze in the stock and that sent it soaring.
At this point, the stock is trading at around $144 a share and many of the Reddit investors are still holding on to it in the hopes of a big payout.
However, the fundamentals do not support the current price level of the stock and eventually, it is believed that the investors would want to cash in by selling their stocks. When that happens, the stock is expected to collapse and hence, investors could do well to avoid the GameStop stock.
Finance and Entertainment Reporter
Richard is a bottle of wine – the older the sweeter. He has already found the sweetest hobby in writing entertainment and finance news for Own Snap. Readers get the updated posts regularly from him searching for real-time news.