In late January, retail investors drove up the share prices of heavily shorted companies in an attempt to trigger short squeezes. Now the meme stock movement is melting down, leaving many speculators with massive holes in their portfolios. Unfortunately for some, the pain could be just beginning.
AMC Entertainment (NYSE: AMC) and GameStop (NYSE: GME) are likely to face continued declines this week because of their weak fundamentals. Let’s explore the reasons investors should avoid these stocks.