According to HypeEquity data, retail investors who are active on subreddit r/wallstreetbets have been boosting the hype this week with words like “short” and “squeeze.” However, getting caught up in such frenzies could potentially lead to significant losses, given the extreme volatility that meme stocks experience.
Amid the renewed interest in buying meme stocks, BlackBerry Limited (BB), Sundial Growers Inc . (SNDL), and Workhorse Group Inc. (WKHS) have hogged the spotlight. Although the gains in these stocks are irresistible, we believe these companies do not possess sufficient fundamental strength and cash positions to sustain their sky-high valuations. So, we think these meme stocks are best avoided now.