1 Stock to Avoid No Matter What
GameStop (NYSE: GME) has certainly had a wild ride this year. If you owned the stock coming into 2021, it was a lot of fun watching the per-share price go from about $17 to the current $212.
But you shouldn't get lulled into buying the hype surrounding this meme stock. The run was partly fueled by a Reddit group, which promoted the stock and also created a short squeeze that led the price higher. That makes for great headlines, but there are strong reasons to avoid getting pulled in.
GameStop, which sells video game consoles and software, was already experiencing weakening sales heading into 2020. Same-store sales (comps) fell by 19.4% in 2019, following that up with a 9.5% drop last year.
Source Fool.com
