So far this year, retail investors have pocketed fast gains thanks to the
Reddit stocks phenomenon. Names like
Gamestop (NYSE: >GME
>GME) may be most well-known, popular with traders on subreddit forums like r/WallStreetBets.
However, there are scores of Reddit penny stocks that have made tremendous gains as well. Is this recent investing trend continuing? Or, like fads eventually do, is it fading away? Count on the latter. Some popular names have seen brief rebounds, but overall these “meme stocks” have lost much of their momentum since hitting highs back in February.
And unfortunately for a lot of them, “buying the dip” may not be the best call. With the enthusiasm fading and their fundamentals far from enough to sustain current valuations, these picks have more room to fall than potential to gain.
So, among the scores of penny stocks that once flew high as “Reddit stocks,” which ones should you be cautious about? These nine fading stars first come to mind:
Asensus Surgical (NYSEAMERICAN:
Castor Maritime (NASDAQ:
Genius Brands (NASDAQ:
Hall of Game Resort & Entertainment (NASDAQ:
Naked Brand Group (NASDAQ:
Sundial Growers (NASDAQ: