Liquid Media (NASDAQ:YVR) stock is taking a beating on Friday despite a lack of news concerning the content creator assistance company.
Instead of recent news, we can likely turn to retail traders to learn why UVR stock is falling today. The company was targeted for a short squeeze by day traders yesterday and that sent shares of the stock running 59.8% higher.
Now, it appears that the pump is over and retail traders are content to let the stock fall. It’s also possible this could be a dip that traders are letting happen before a second push on the stock to try and take it higher.
No matter the case, there’s no denying the risk that comes with investing in YVR stock right now. The company is already firmly in penny-stock territory and this extra volatility makes any kind of investment in it even risker.
Penny stocks like YVR are often the targets of retail traders for pump and dumps. While this can make some quick cash for some investors, there are always those that don’t get out soon enough and are left holding the bag.
It’s also worth pointing out that YVR stock is experiencing heavy trading today. As of this writing, more than 9 million shares of the stock have changed hands. That’s a major increase over its daily average trading volume of 5 million shares.
Keeping all of these factors in mind, investors will want to be careful about taking a stake in YVR stock right now.
YVR stock was down 22.3% as of Friday morning.
Retail traders have been playing havoc with the stock market all week.
InvestorPlace.com has all the latest retail trading and short-squeeze news that traders need to know about. That includes a list of short squeeze stocks to keep an eye on, what meme stocks have been doing lately, as well as what pushed Wilhelmina International (NASDAQ:WHLM) higher.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks. Read More: Penny Stocks — How to Profit Without Getting Scammed