Why I Won't Buy Into the GameStop Frenzy

Last week, GameStop (NYSE: GME) not only blew up the stock market, but the internet on a whole, as shares of the company skyrocketed in the course of a single week. And it's not because the company released solid earnings or did something to specifically lend investors to believe in its stock. Rather, it's because a group of savvy Reddit users effectively forced a group of Wall Street pros to close out their positions in a tactic known as a short squeeze.

Of course, anyone sitting on non-shorted shares of GameStop before the recent frenzy clearly made out like a bandit this week. But alas, I didn't own GameStop before its recent rally, and I have no plans to buy it right now. Here's why.

Image source: Getty Images.

Source Fool.com