After soaring earlier in the year, several stocks that have become favorites among investors on Reddit and other social media sites have pulled back sharply in recent days.
Here's how some of the most popular of these stocks performed today:
- Zomedica (NYSEMKT:ZOM), down 6%
- Naked Brand Group (NASDAQ:NAKD), down 8%
- Ocugen (NASDAQ:OCGN), down 20%
Millions of investors have turned to investment forums such as the WallStreetBets Reddit group in search of ways to make money in the current market environment. After some traders made a fortune by buying shares of GameStop early into its epic Reddit-fueled short squeeze, investors began searching for other volatile stocks to buy. Many of these traders turned to small-cap stocks like Naked Brand, Zomedica, and Ocugen in hopes of mimicking GameStop's explosive returns.
Image source: Getty Images.
For investors who bought these stocks early in the year, this has been a winning strategy. Ocugen, Zomedica, and Naked Brand are up 587%, 290%, and 207%, respectively, so far in 2021.