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However, the resurgence of coronavirus infections has raised concerns over the economy’s faltering recovery and overshadowed the optimism about the Federal Reserve’s possible continuation of its accommodative policy. Hence, fundamentally weak and overvalued stocks that surged in price over the past few months, driven solely by social-media hype, could witness a significant pullback in the near term.
Therefore, we believe the shaky fundamentals and excessively stretched valuations of Reddit stocks Upstart Holdings, Inc. (UPST), Clover Health Investments Corp. (CLOV), and Root Inc. (ROOT) could potentially cause their share prices to retreat in the near term. So, they are best avoided now.
