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The exceptional rally of some stocks has been driven by their popularity with social-media-influenced retail traders, in some cases despite their companies’ weak financials and bleak growth prospects.
Chinese EV-maker NIO Inc. (NIO) and American movie theater chain AMC Entertainment Holding, Inc. (AMC) have witnessed a skyrocketing rally based solely on their popularity and social media hype. But, since their current price levels are not in sync with their fundamentals, they could witness a price retreat in the near term. Therefore, we think these two stocks are best avoided now.
