Forget AMC: This Growth Stock Is a Better Buy
AMC Entertainment Holdings (NYSE: AMC) has crushed the market this year, with the stock surging 2,080% since January. However, the Reddit-fueled enthusiasm surrounding AMC has also made it a very dangerous investment.
Over the past six months, retail investors have orchestrated campaigns across social media, urging people to buy the stock. They've done so in the hopes of sparking a short squeeze, an event that occurs when rising prices force short sellers to cover their position by purchasing the stock, creating a snowball effect that sends the stock price even higher.
Unfortunately, that type of short-term thinking is tantamount to gambling. There's no guarantee it will work, and many retail investors are likely to get burned in the process. So, rather than waste money on meme stocks, investors should look for better ways to build long-term wealth. For example, Roku (NASDAQ: ROKU) looks like a better buy. Here's why.
Source Fool.com
