2 Reasons to Sell GameStop Stock
Shares in GameStop (NYSE: GME) have soared over 1,700% year to date amid a massive short squeeze as retail investors pile into the stock. This rally is part of a market-wide push into heavily shorted companies. But investors should think twice before taking a position in this struggling brick-and-mortar video game retailer. GameStop's fundamentals don't support its large valuation, making the stock is a risky bet.
According to The Wall Street Journal, retail investors are coordinating on social media to drive up the prices of heavily shorted stocks to trigger short squeezes -- or a chain reaction of short-sellers attempting to buy back shorted shares to exit their positions, causing the price to soar.
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Source Fool.com
