Stay Away from These 2 WallStreetBets Stocks By StockNews

© Reuters. Stay Away from These 2 WallStreetBets Stocks

Clover Health (CLOV) and MicroVision (MVIS) are two heavily discussed stocks by Reddit’s WallStreetBets (WSB) group currently. While these two fundamentally weak stocks have gained significantly solely on the actions of WSB, we think their weak financials and sky-high valuations make them highly risky bets now.WallStreetBets (WSB), the Reddit forum that of late have gamed the shares of GameStop (NYSE:) and many other fundamentally weak and heavily-shorted companies to squeeze short sellers out of their positions, has a keen interest in Clover Health Investments, Corp. (CLOV) and MicroVision, Inc. (MVIS). This is evidenced by the significant number of posts highlighting these two stocks in the chat room.

With extremely high valuations relative to their underlying business fundamentals, both CLOV and MVIS are WSB targets primarily because of the whopping short interest in them. But, in the absence of fundamental strength, the rally in these stocks is probably over, and we think they could suffer a significant decline in the near term.

So, we think it’s wise to stay away from these stocks now.

Continue reading on StockNews

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Most Related Links :
Business News Governmental News Finance News

Need Your Help Today. Your $1 can change life.

[charitable_donation_form campaign_id=57167]

Source link

Back to top button