Small investors change the game, but it won’t last

Earlier this month, a Reddit-driven investor coup sent shockwaves through the market as heavily shorted stocks skyrocketed in price. Professor Mo Chaudhury weighs in on the mania, attributing the rising number of new investors to the COVID-19 pandemic.

As free apps allow virtually anyone with a smartphone to buy and sell stocks, social networks are enabling inexperienced investors to act without performing any research or analysis. According to Chaudhury, the recent boom of shorted stocks exists inside a bubble that won’t last.