Meme Stock Massacre: 3 Reddit Darlings on the Brink of Collapse

InvestorPlace04-19

It may be tough to hear, but these Reddit stocks aren’t doing your portfolio any favors. GameStop (GME): The company’s business model, or lack thereof, should be reason enough to move on. Nio (NIO):...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2428630076?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2024-04-19 19:30","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2428630076","market":"us","top_or_hot":-1,"title":"Meme Stock Massacre: 3 Reddit Darlings on the Brink of Collapse","media":"InvestorPlace","content":"<div>\n<p>It may be tough to hear, but these Reddit stocks aren’t doing your portfolio any favors. \nGameStop (GME): The company’s business model, or lack thereof, should be reason enough to move on. \nNio (NIO):...</p>\n\n<a href=\"https://investorplace.com/2024/04/meme-stock-massacre-3-reddit-darlings-on-the-brink-of-collapse/\">Source Link</a>\n\n</div>\n","source":"investorplace_stock_picks","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Meme Stock Massacre: 3 Reddit Darlings on the Brink of Collapse</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMeme Stock Massacre: 3 Reddit Darlings on the Brink of Collapse\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-04-19 19:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://investorplace.com/2024/04/meme-stock-massacre-3-reddit-darlings-on-the-brink-of-collapse/><strong>InvestorPlace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>It may be tough to hear, but these Reddit stocks aren’t doing your portfolio any favors. \nGameStop (GME): The company’s business model, or lack thereof, should be reason enough to move on. \nNio (NIO):...</p>\n\n<a href=\"https://investorplace.com/2024/04/meme-stock-massacre-3-reddit-darlings-on-the-brink-of-collapse/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4535","symbol_name":"淡马锡持仓","start_time":0,"source_url":"https://investorplace.com/2024/04/meme-stock-massacre-3-reddit-darlings-on-the-brink-of-collapse/","article_id":"2428630076","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2428630076","pubTimestamp":1713526200,"sourceInfo":{"source_id":"investorplace_stock_picks","name":"InvestorPlace stock picks"},"weMediaInfo":null,"summary":"It may be tough to hear, but for a variety of reasons, it's time for investors to say goodbye to these troubled Reddit stocks.","collect":0,"end_time":0,"defaultTopTitle":"investorplace.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4535":"淡马锡持仓","BK4577":"网络游戏","SG9999015986.USD":"LIONGLOBAL DISRUPTIVE INNOVATION \"I\" (USD) ACC","SG9999015978.USD":"利安颠覆性创新基金A","BK4077":"互动媒体与服务","LU2326559502.SGD":"Natixis Loomis Sayles US Growth Equity P/A SGD-H","BK4550":"红杉资本持仓","BK4588":"碎股","SG9999014898.SGD":"United Global Quality Growth Fund Dis SGD","LU1046421795.USD":"富达环球科技A-ACC","UBER":"优步","NIO":"蔚来","LU1720051017.SGD":"Allianz Global Artificial Intelligence AT Acc H2-SGD","BK4076":"电脑与电子产品零售","BK4551":"寇图资本持仓","BK4022":"陆运","BK4230":"旅客陆运","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","IPO":"Renaissance IPO ETF","SG9999014906.USD":"大华全球优质成长基金Acc USD","GME":"游戏驿站","SG9999017495.SGD":"UGDP UNITED GLOBAL QUALITY GROWTH \"B\" (SGD) ACC","SG9999014880.SGD":"大华全球优质成长基金Acc SGD","LU1316542783.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD","BK4099":"汽车制造商","NFLX":"奈飞","SG9999014914.USD":"UNITED GLOBAL QUALITY GROWTH (USDHDG) INC","LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","LYFT":"Lyft, Inc.","09866":"蔚来-SW","BK4566":"资本集团","RDDT":"Reddit","LU0642271901.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD-H","EVS.SI":"MSCI China Electric Vehicles and Future Mobility ETF-NikkoAM","LU0708995583.HKD":"TEMPLETON CHINA \"A\" (HKD) ACC","GB00BDT5M118.USD":"天利环球扩展Alpha基金A Acc","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","BK4509":"腾讯概念","IE00B19Z3B42.SGD":"Legg Mason ClearBridge - Value A Acc SGD","LU0353189680.USD":"富国美国全盘成长基金Cl A Acc","LU1823568750.SGD":"Fidelity Global Technology A-ACC SGD","BK4585":"ETF&股票定投概念","BK4507":"流媒体概念","BK4555":"新能源车","SG9999004303.SGD":"Nikko AM Shenton Global Opportunities SGD","NIO.SI":"蔚来","BK4587":"ChatGPT概念","SG9999015945.SGD":"LionGlobal Disruptive Innovation Fund A SGD"},"translate_title":"迷因股票大屠杀：3个Reddit宠儿濒临崩溃","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"UBER":1,"IPO":1,"GME":1,"RDDT":1,"LYFT":1,"NIO":1,"NFLX":1,"NIO.SI":0.6,"EVS.SI":0.6,"09866":0.6},"content_text":"It may be tough to hear, but these Reddit stocks aren’t doing your portfolio any favors. \nGameStop (GME): The company’s business model, or lack thereof, should be reason enough to move on. \nNio (NIO): The company is falling behind in its home market which is likely to halt expansion plans. \nLyft (LYFT): A recent court decision highlights the fundamental obstacle that Lyft may not be able to overcome.\n\n\n\n\n\n \n\nSource: shutterstock.com/ChrisStock82\n\n\n\nAs of this writing, Reddit (NYSE:RDDT) stock has been publicly trading for about a month. For a variety of reasons, the stock is down about 20%. But what may be most concerning is that volume is down sharply. It’s too early to draw firm conclusions. However, the stock does not appear to have the committed following of some Reddit stocks that were a core argument for the company’s initial public offering (IPO).\nThe popularity of these “meme stocks,” on subreddits such as WallStreetBets made the social media site a household name among investors. Documentaries have been made to describe the phenomenon and perhaps serve as a cautionary tale. \nIn fairness, meme stocks get a bad rap. There are many popular Reddit stocks that most investors would be happy to own. But this is a site for speculators, many of whom have a “go big or go home” mindset that encourages risk-taking. \nThe Reddit community is great for providing investors with support and knowledge they may not otherwise get. But the herd mentality is real. And it can blind you to some risks that are simply not worth taking. Here are three Reddit stocks that present risks that don’t appear to be worth taking anymore. \nGameStop (GME)\nSource: shutterstock.com/EchoVisualsGameStop (NYSE:GME) is one of the original Reddit stocks to gain prominence. Investors remember it for its meteoric rise caused by an epic short squeeze in 2021. The issue for investors then, as now, is the desire to confuse an inexpensive stock with a stock having hidden value. GME stock is cheap, but does it still have value? \nGameStop’s core business is to the gaming industry what Blockbuster video is to Netflix (NASDAQ:NFLX). It’s simply been bypassed by the proverbial better mousetrap. And the company’s pivot into collectibles, while interesting, won’t be a significant driver of revenue. \nThat leaves the company’s chairman, Ryan Cohen, who has the opportunity to buy securities of other companies. That makes GameStop a hedge fund by another name. Could it work? In theory, it could. But as my InvestorPlace colleague Rich Duprey summarized recently, “…Profits Mean Nothing When Your Business Is Dying.” Another short squeeze is improbable. The game appears to be over. \nNio (NIO)\nSource: Freer / Shutterstock.comFor a time, Nio (NYSE:NIO) looked like it would be a rags-to-riches story. As the electric vehicle (EV) market revved up, Nio appeared to be a clear winner. But with the stock down 60% in the last 12 months, Nio faces some difficult challenges as the stock sinks back into penny stock territory. \nThe company managed to increase deliveries in its most recent quarter. But that doesn’t change the reality that the company is losing market share in its home country, China. And it was losing market share when the Chinese market was red hot. That market is cooling, and so is the company’s gross margins. The general cooling in the EV market is also affecting the company’s deliveries in Europe. \nAlso, a core piece of Nio’s business model is its battery swap program. The company is committed to building 1,000 more swapping stations in 2024. That will also come at the expense of profitability. \nAnd if you need another reason to stay away from NIO stock, it’s essential to note that short interest is up 16.5% in the last month. In a competitive market, Nio appears to be running out of juice. \nLyft (LYFT) \nSource: OpturaDesign / Shutterstock.comLyft (NASDAQ:LYFT) is part of a duopoly, such as it is, with Uber Technologies (NYSE:UBER). The company has been increasing its revenue steadily. It’s also getting closer to profitability. But being close is not the same as being profitable. And higher interest rates will hurt unprofitable companies harder. \nHowever, the bigger issue for Lyft, and the ride-hailing model in general, is coming from Minneapolis, Minnesota. On August 17, the city council passed an ordinance that, if passed into law, would guarantee the city’s $15 minimum wage for any driver with rides originating in Minneapolis. \nBoth Lyft and Uber are threatening to pull out of the city if the law is passed. It’s not hard to see why. The driver/gig worker remaining as an independent contractor is essential to Lyft’s ability to manage its costs, particularly as it prioritizes profitability. \nAt this time, it’s unclear if the law will pass. But it seems likely that Minneapolis won’t be the only city trying to pass such laws. Investors hate uncertainty with the bluest of blue-chip companies and like it even less with an unprofitable mid-cap stock with an entrenched and profitable competitor in the sector. \nOn the date of publication, Chris Markoch did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. \nChris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.Meme Stocks\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nSubmit\n\n\n\n\n\n\n\nArticle printed from InvestorPlace Media, https://investorplace.com/2024/04/meme-stock-massacre-3-reddit-darlings-on-the-brink-of-collapse/.\n©2024 InvestorPlace Media, LLC","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2428630076"}