A significant increase of more than 200% within seven days. - Considering purchasing GameStop shares?
Presently, prices for both GameStop and AMC plummeted significantly (dropping from EUR 73 to EUR 35 for GameStop and from almost EUR 12 to EUR 6 for AMC). However, they seem to be bouncing back strongly. The catalyst for this comes from the fact that they are commonly known as "meme stocks."
Meme stocks are different from regular stocks as their value is primarily influenced through social media platforms like Reddit. Just like how viral memes spread on social networks, meme stocks follow a similar trajectory. Wrote Schmitt, "Meme stock price swings are unrelated to fundamental data. GameStop's business isn't thriving, but the buying pressure is causing hedge funds to scoop up shares, which in turn is boosting their worth in the short term... until eventually the whole system crashes once again."
To sum up: Feel free to participate in stock market as entertainment, but seasoned investors are advised to avoid investing in GameStop and such "meme stocks."
Note: GameStop is a prominent American chain that deals with computer games and entertainment software. Meanwhile, AMC Entertainment Inc. is a prominent global operator of movie theaters.
Read also:
- BVB trails 1-0 against Paris, with Füllkrug leading them towards the final.
- Munich Drama: Late Real Penalty Leaves Bayern Shocked
- Lars is capable of leading BVB, according to many.
- Subsequent torrential rainfall leads to 48 fatalities due to partial highway collapse in China.
Source: symclub.org
