Disclaimer: I bought and sold AMC stock on Monday. I am not a financial adviser.
The past week the Stock Market has been going crazy as a result of the price boom of several stocks specifically GameStop and AMC Entertainment. The reddit page r/wallstreetbets has fueled the boom of these companies. However, as the results of this week have shown so far that the boom appears to be over. I personally blame Robinhood for this and you can read about what I wrote about Robinhood here and here. Robinhood and other brokerage firms by limiting the amount people could buy of GameStop and AMC have caused the price to tank because people could not buy anymore of the stock. We will never truly know the demand of those stocks because of Robinhood. This boom is over.
If you look onto the reddit page r/wallstreetbets you will see people saying “Hold the line” and “buy the dip.” This kind of rhetoric is insanely irresponsible as GameStop and AMC are not valuable companies. GameStop is a dying business and will go the way of the Blockbuster within the next few years. While I love going to the movies as much as the next guy, AMC is not a valuable company in a pandemic with hundreds of their theaters closed. These companies stock prices won’t go back up to their peaks from last week ever again. So it is irresponsible of all these idiots who think they are sticking it to the man to double down and continue to lose money. Currently on r/wallstreetbets you will see dozens of posts of people losing money on GameStop and AMC. Losing your money isn’t funny or cool. This boom was fun while it lasted, but its now over, sell your stock and invest in other ideas. Be smart and good luck.
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