VinFast Stock Soars then Crashes in Retail Investor Frenzy, Exhibiting 'Greater Fool' Behavior

VinFast, an unprofitable EV maker, saw its stock surge 504% in 4 weeks before crashing 80% in 8 days, exhibiting "greater fool" behavior.
Retail investors piled into VinFast late, helping drive the frenzy, similar to meme stocks like GameStop and AMC early in the pandemic.
Tiny floats of shares, like VinFast's 1% availability, can make stocks prone to wild swings when small groups coordinate buys.
Traders treat stocks like casino bets, spurred by free money, personalities, and ease of access from phones.
The "greater fool theory" of betting on stocks hoping a greater fool will buy at a higher price appears here to stay.

yahoo.com

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Posted 9/9/2023, 12:00:00 PM