Stay Away from These 2 Overvalued Reddit Stocks in December -Breaking
WallStreetBets has been causing many investors short squeezes since January 1. Given that meme stock rallies don’t always last a long time, and there are rising uncertainties due to the new coronavirus strain, we believe investors should avoid Lucid Group (LCID) and Upstart Holdings (NASDAQ:). This stock looks highly overvalued, and is susceptible to a pullback. Subreddit r/wallstreetbets has revolutionized the investment world and dramatically reshaped financial markets. WSB has helped short sellers out of their stocks by driving skyrocketing rallies and removing them from the market. The fundamental weakness of some such stocks has caused the rally’s end.
Stock market gains could be wiped out by rising uncertainty due to the new coronavirus strain. Investors need to be aware of the potential for a short-term pullback, given the mounting concern about how the new coronavirus strain could impact economic activity and inflationary pressure.
We believe that speculative stocks like Lucid Group Inc. (LCID), are overvalued. Upstart Holdings Inc . Reddit’s current favorite, UPST (User-Program for Self-Tracking), should be avoided.
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