Jan 27, 2021 | 10:15 am
Here is a useful article from Yahoo Finance, explaining why some stocks, like Gamestop, have surged recently.
The key is that these companies have been benefitting from short-term herding behavior--not from fundamental economic improvements in their circumstances. Most likely, their stock prices will eventually revert to more accurate representations of their economic realities. As always, the investors who suffer wil be the last ones to join the "party," which means they will "buy high and be forced to sell low" after prices come back down to Earth.