2 Red-Hot Stocks That Could Crash

If you thought 2020 was a weird year for the stock market, welcome to 2021. Short squeezes initially fueled by Reddit users have driven massive gains in various heavily shorted stocks, most notably the troubled video game retailer GameStop. While each mania is different, they all end the same way. GameStop stock is almost certain to eventually crash.

While GameStop is an obvious bubble, there are plenty of stocks that soared last year to levels that make little sense relative to their fundamentals. Two examples are electric car maker Tesla (NASDAQ: TSLA) and insurance company Lemonade (NYSE: LMND). Both have valuations that raise some serious eyebrows.

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Source Fool.com