Why $NAKD Stock crashed Down Sharply from last week?
The WallStreetBets short squeeze continued to unravel this week with investors pocketing gains and latecomers hoping for a second bounce.
A number of factors are driving the ongoing sell-off as $NAKDe stock peaked last week.
The first is that many short-sellers closed out their bets as the stocks soared last week, riding a massive short squeeze and gamma squeeze.
Second, savvy traders who rode the stocks up sold it to take profits. Third, fundamentals matter, and stocks will naturally revert to their mean barring any significant change in fundamentals. After all, a stock is a part-ownership in a business, not a lottery ticket.
So the possibility of a short squeeze is diminished, and the "easy money" has come and gone.
Traders who now buy any of these three stocks are banking on another pump-and-dump rally to lift them.
Investors should also be aware that $NAKD stock is still significantly above historical trading level and fundamentals are weak, meaning stock could fall significantly further.
www.fool.com/investi...ain-why-these-3-sto/
The WallStreetBets short squeeze continued to unravel this week with investors pocketing gains and latecomers hoping for a second bounce.
A number of factors are driving the ongoing sell-off as $NAKDe stock peaked last week.
The first is that many short-sellers closed out their bets as the stocks soared last week, riding a massive short squeeze and gamma squeeze.
Second, savvy traders who rode the stocks up sold it to take profits. Third, fundamentals matter, and stocks will naturally revert to their mean barring any significant change in fundamentals. After all, a stock is a part-ownership in a business, not a lottery ticket.
So the possibility of a short squeeze is diminished, and the "easy money" has come and gone.
Traders who now buy any of these three stocks are banking on another pump-and-dump rally to lift them.
Investors should also be aware that $NAKD stock is still significantly above historical trading level and fundamentals are weak, meaning stock could fall significantly further.
www.fool.com/investi...ain-why-these-3-sto/