Hockey-stick increases in a company's shares even as it loses money is typical of meme stocks, which can surge as retail investors in pursuit of a quick killing crowd into the stock — often at the expense of other investors who have shorted, or bet against, the company. "In this charged atmosphere, even a single dollar of uncommitted capital — dry powder waiting in the wings — can unleash a stampede, tipping the balance in a heartbeat and generating jaw-dropping price swings within a single session," he said in a research note. Adam Crisafulli, head of investment advisory firm Vital Knowledge, said in a report Tuesday that the spikes in stocks like Kohl's and Opendoor "act like giant red flags" for the market and that "froth this extreme is never a good sign," while noting that corporate profits overall remain solid.
Author: Megan Cerullo
Published at: 2025-07-22 22:05:01
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