(C) Reuters. 3 WallStreetBets Tech Stocks to Avoid
Most tech stocks have skyrocketed over the past year thanks to individuals’ and businesses’ increased reliance on technology products. However, some fundamentally weak tech stocks hit record price highs during this rally due solely to a short squeeze triggered by the Reddit forum WallStreetBets (WSB). As such, we think WBS favorites Palantir (PLTR), BlackBerry (NYSE:BB), and MicroVision (MVIS) look extremely risky now given their weak financials. So, they are best avoided. Read on.Barring the sell-off earlier this year, most tech stocks witnessed a blistering rally over the past year thanks to an increased demand for technology products and services amid the COVID-19 pandemic. However, not all stocks gained based on their business growth. Some fundamentally weak stocks took Wall Street by storm thanks to short squeezes triggered by young or novice investors on Reddit’s r/WallStreetBets (WSB) chatroom.
Following the forum’s huge success in squeezing short sellers out of their positions in GameStop (NYSE:GME) earlier this year, by betting against them and buying the stock despite GameStop’s weak financials and growth prospects, WSB has targeted many other fundamentally weak stocks that possess high short interest and benefited by causing short squeezes in them too.
Palantir Technologies (PLTR), BlackBerry Limited (BB), and MicroVision, Inc. (MVIS) are among the top 10 most discussed stocks on the Reddit forum. We think these stocks are overvalued at their current price levels considering their weak financials and bleak growth prospects. So, they are best avoided now.
3 WallStreetBets Tech Stocks to Avoid
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