Why hyped up stocks will destroy your account
If you had been invested in hyped up and meme stocks, let me present some clear cut signs why it will eventually destroy your account.
AMC
AMC Entertainment Holdings is in the theatrical exhibition business, which operates theatres in the United States & Europe. Clearly revenues have been declining while costs are rising. Consumer trends have changed these days, as they are waiting for theatrical releases to be out on direct to consumer streaming platforms like Netflix, Disney+, Amazon Prime, etc.
If you had been in a stock like AMC, you would have been down 53% for the last one year. In fact it gets a warning signal on Seeking Alpha. AMC has EV/EBITDA (FWD) of 35.34 vs the communications services sector median of 8.36. It also carries a profitability grade of D & valuation grade of F!
GameStop
GameStop Corp is a retailer that sells video games and entertainment products on its e-commerce platforms in the United States, Canada, Australia and Europe. The company sells new and pre-owned gaming platforms, accessories such as controllers, headsets and virtual reality products, new and pre-owned video game software, and others.
Unfortunately for GameStop, their business continues to be eroded by gaming platforms and their online stores. Console providers like Sony, Microsoft & Nintendo all have their own online stores that have points and benefits for their customers. The only benefit of buying a physical copy of a game today is that the customer can resell the copy of the game upon completion, or customers can buy a used copy for a cheaper price. Financial metrics look bad since 2020, where the company has had negative operating income. Their net income has been nagative since 2019. Unless the company takes significant measures to change their business model, there appears to be no way out for GameStop.
If you were invested in hyped up names, sell and reinvest in a profitable undervalued business
If you do own shares of hyped up stocks, it would be best to take a loss early and reinvest the proceeds in a business that is profitable and still under valued today!
Google is trading at a 18% discount
One such example of a profitable business is Google! The online search market is dominated by Google, with 80%-plus market share. For now, macro headwinds keeps pressure on advertising revenue for Google. Additionally, Google's Cloud business will gain traction, it currently has a 10% market share in the global cloud market and will continue to chip away at the top two of Amazon's AWS & Microsoft's Azure.
The technicals do suggest that investors are still buying the dip when it recently tested the 50 daily moving average.
Do you agree that hyped up stocks will eventually blow up your account?
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Just want to point out that the 52 week high for both amc and ape will be ~$10 by the time of the annual meeting.
We're so diligent at grinding lies and insults for our low pay. Makes you wonder why we don't have the ambition to find a real job requiring real skill, instead of being subservient doormats for corruption
AMC was once worth $72. This means that most people who shorted it have already closed at a profit
Spam hate, lies and insults over and over. So what if it's textbook racketeering and illegal. This is our demeaning, low pay role in life.
If you are considering investing in a hyped up stock, it is important to do your research and understand the risks involved.
When you buy a hyped up stock, you are essentially betting that the hype will continue and that the price of the stock will go up.
1053.34% CTB that's over 20% a week. Geez. The conversion needs to happen really soon for shorts! LOL.
A few of you need to take a chill pill. This stock is garbage and everyone invested in it is underwater.
Even if you do your research and avoid hyped up stocks, you could still lose money.
We witness one more morning AMC pump and dump almost identical to yesterday's.