What Is GameStop’s Current Position In Comparison To AMC’s?

(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 meme stocks first went viral over two years ago, are they still a good 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 part as a result of popular 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 during which the value of key meme stocks skyrocketed over a short period of time.

According to Forbes Magazine, the craze began to spread as social media debates gained traction, capturing the attention of the mainstream media and luring retail investors seeking to overthrow institutional control.

Risky, with unknowable rewards

As a result of the high risk and unknown rewards associated with short-term GameStop speculative trading on shorted stocks, short-term speculative trading is not recommended. The purchase of such stocks is generally considered to be a risky investment.

“The excitement [of meme stocks] has since waned, even if it hasn’t gone away 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 in any particular position. Investing emotionally, or succumbing to the herd mentality that comes with meme stocks, can often lead to loss of capital.

The battle between GameStop and AMC

There may be a better solution than investing in either GameStop or AMC if you are debating whether to make an investment in either.

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