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Avoid These 3 Meme Stocks Like the Plague in November

Stock MarketsNov 01, 2021 10:30AM ET
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© Reuters. Avoid These 3 Meme Stocks Like the Plague in November

The meme stock mania, which started earlier this year thanks to social-media forums, is gradually fading because most meme stocks don’t possess sufficient financial strength to support their massive price gains. Hence, we believe fundamentally weak meme stocks Robinhood (NASDAQ:HOOD), GameStop (GME), and IronNet (IRNT) are best avoided now. Read on.Meme stocks emerged as a pandemic-induced diversion from traditional investing practices, with the zealous involvement of millennials as retail traders. Several social media forums helped retail traders bet against hedge funds, causing a short squeeze in some fundamentally weak stocks. However, with most meme stocks failing to maintain the price levels they achieved, the meme craze is gradually fading. Another reason for the declining interest in meme stocks is the revival of cryptocurrencies. Retail traders’ attention is shifting toward potentially lucrative opportunities offered by cryptocurrencies. So, while there are still new meme names on social media forums, the most popular candidates in this space are losing focus.

According to the alternative data provider Quiver Quantitative, the average number of daily comments on Reddit’s WallStreetBets forum last month was only half of its last year’s value. Furthermore, the number of active users and funded accounts on a few financial platforms that allow investors to invest in stocks saw a dip in the third quarter.

So, we think it could be wise to avoid meme stocks Robinhood Markets , Inc. (HOOD), GameStop Corp . (NYSE:GME), and IronNet, Inc. (IRNT) because of their weak growth prospects and bleak financials.

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Avoid These 3 Meme Stocks Like the Plague in November
 

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Comments (6)
GFlen BC
GFlen BC Nov 02, 2021 9:48PM ET
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I normally do exact the opposite what you advise. Thank you !
Pupi Pi
Pupi Pi Nov 01, 2021 6:35PM ET
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Hahaha what a bad advice. Plague just jumped 15% in 2 days. Avoiding your advices is the best an investor can do. Paid shills.
Simon Braun
Simon Braun Nov 01, 2021 3:40PM ET
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Probably best to avoid your horrible advice and terrible track record instead.
Truth Trader
Truth Trader Nov 01, 2021 3:12PM ET
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Amen.
Henrik Lindberg
Henrik Nov 01, 2021 11:45AM ET
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Bought my first gme today, then drs
Chris Garcia
Chris Garcia Nov 01, 2021 11:17AM ET
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Fake news financial media is terrified of GameStop. We will continue to Buy, Hold, and DRS until it’s Game Over for the criminals on Wallstreet. GME to Infinity and Beyond 🚀
 
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