By Dhirendra Tripathi
Investing.com – Meme stocks are surging one more time.
In Friday’s session so far, GameStop (NYSE:), the leader of the pack, rose 10% while Koss (NASDAQ:) was up 24%. AMC Entertainment (NYSE:) shares also traded with 10% gains. This is even as most broader indices were weak on concerns over rising bond yields and the stimulus getting tapered.
Meme stocks are popular on social media platforms and have come to acquire a loyal following among young investors, who are out to beat the large established institutions.
While the surge of meme stocks created riches for some, there are fears they could end up hurting investors caught on the wrong side of the trade. Market experts believe that it’s just a frenzy driving them and not fundamentals.
GameStop now has a market cap of $19.52 billion. Several pundits have said they believe the valuation isn’t justified.
Bank of America (NYSE:) remains negative on GameStop, notwithstanding the company’s decision to go for a digital makeover, according to Seeking Alpha.
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