(CTN News) – As a result of the GameStop recently released film “Dumb Money” which tells the story of a YouTube content creator who encourages his followers to invest in heavily shorted stocks, there has been a great deal of discourse regarding meme stocks in the media.
Since memeviral over two years ago, are they still investment?
Meme stocks are what they sound like.
In 2021, meme stocks, or stocks whose performance is GameStop greatly influenced by social media, took off in popularity.
Meme stocks gained popularity in partpopular online forums such as the r/WallStreetBets subreddit. Several users of these forums encouraged others to purchase and hold heavily shorted stocks, with AMC and GameStop being the most popular.
The result was a meme stock frenzy duringmeme stocks skyrocketed over a short period of time.
According to Forbes Magazine, the luring retail investors seeking to overthrow institutional control.
Risky, with unknowable rewards
As a result of the high risk and unknown rewards associated withGameStop speculative trading on shorted stocks, short-term speculative trading is not recommended. risky investment.
“The excitement [of meme stocks] has since waned, even if it hasn’taway completely, and traders who purchased shares [during the meme stock craze] would now be deep in the red,” CNBC reported.
You should always conduct your due diligence before investing inInvesting emotionally, or succumbing to can often lead to loss of capital.
The battle between GameStop and AMC
There may be a better solution than investingor AMC if you are debating whether to in either.