The Reddit forum WallStreetBets came into the limelight after the community helped push the stocks of GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC) to sky-high levels, despite their bleak fundamentals. Retail trading has increased significantly over the pandemic period. Moreover, the retail trading frenzy is expected to continue next year. Wall Street analysts have predicted a more than 90% upsides in the stocks of Peloton (PTON), Virgin Galactic (SPCE), and IronNet (IRNT).The Reddit community, r/WallStreetBets, gained popularity after retail investors on the forum helped push GameStop Corporation (GME) and AMC Entertainment Holdings, Inc. (AMC) stock to astronomical highs. However, the price gains could not be sustained, given the stocks’ weak fundamentals.
Over the past year, retail trading has increased significantly, owing to the easy to access trading apps like Robinhood Markets , Inc. (NASDAQ:HOOD). Retail investing is primarily influenced by trends, the news, and social media. Amateur investors have increased to around 23% of all equity trading in the US, compared to just 10% in 2019. Retail investors on Reddit forums have triggered several short squeezes this year. Experts anticipate that the retail trading frenzy raising stocks to astronomical heights can continue into the next year.
Wall Street analysts expect a more than 90% upside in WallStreetBets stocks Peloton Interactive, Inc. (NASDAQ:PTON), Virgin Galactic Holdings, Inc. (NYSE:SPCE), and IronNet, Inc. (IRNT).