GEO Group (GEO) stock Continues to Move Higher: How To Trade Now?
4:41 pm Thursday, June 10th, 2021
If you are currently looking into exploring the possibility of investing in real estate investment trusts then it might be a good move to take a look at the GEO Group (NYSE:GEO) stock. GEO is a real estate investment trust and primarily deals in secure facilities.
Yesterday, the stock soared by as much as 35% as investors piled on to it in a big way. It appears that the rally in the stock was triggered by the heightened interest in stocks that have a considerable short interest. In recent days, the meme stock phenomenon has reared its head again and some of the good meme stocks like GameStop and AMC Entertainment have clocked considerable gains.
The Reddit community WallStreetBets, which boasts of as many as 10 million members at this point, has managed to wreak havoc on short-sellers through the activities of its members. Many of the retail traders from the community have searched for heavily shorted stocks and then gone in aggressively into those stocks.
Due to the rising price, it forced many short sellers to buy back shares in order to limit their losses and that, in turn, led to even higher gains. Hence, it is no surprise that with the return of the meme stock frenzy, people are now actively looking for shorted stocks like GEO Group.
However, in this regard, it is also necessary to note that once a stock starts to be the center of attention on WallStreetBets, the chatter soon spreads to other platforms and that may result in more publicity for a particular stock.
It should be pointed out that there has been no recent news about GEO Group that may have triggered such a strong rally in the stock and hence, it can be concluded that the rally is entirely speculative at this point. Hence, interested investors could do well to tread cautiously.
