Dallas Mavericks owner Mark Cuban has advised investors who plan to invest in meme cryptocurrency Dogecoin (DOGE) or so-called stonks such as GameStop Corp (NYSE:GME) and AMC Entertainment Holdings Inc. (NYSE:AMC) to make sure they first know why they are investing in these assets.
What Happened: “It’s easy to get lost in the hype of Dogecoin, GameStop or AMC, and I’m not saying don’t invest in those companies because they can be good investments, but you’ve got to know why you’re investing,” Cuban said during a recent interview with The Daily Beast.
See also: How to Buy Dogecoin (DOGE)
The NBA owner advised investors not to invest in Dogecoin or these companies just after seeing a video on TikTok or YouTube, as those “aren’t good enough reasons.” Instead, he asked investors to do “the homework” and invest in companies they agree with, and believe in.
See Also: Why Mark Cuban Sees Cryptocurrencies, Including Dogecoin, As 'Evolving In Real Time'
Why It Matters: Cuban is a big advocate of Dogecoin and other cryptocurrencies. In March, the Dallas Mavericks began to accept the Shiba Inu-themed cryptocurrency as a means of payments for Mavs tickets and merchandise. Cuban revealed in April that Maverick’s sales in Dogecoin jumped up over 550% compared to the prior month.
Meanwhile, shares of GameStop, AMC Entertainment and other stocks that are favored by the retail crowd have seen extreme volatility in recent sessions. AMC Entertainment’s valuation shot past fellow stonk GameStop earlier this month amid increasing interest from retail investors as they attempt a new short squeeze.
AMC Entertainment’s year-to-date returns stand at 2,588.68%, while GameStop’s stock has returned year-to-date gains of 1,117.83%.
Price Action: AMC Entertainment shares closed 15.4% higher in Monday’s regular trading session at $57.00 and further rose almost 2% in the after-hours session to $58.11.
GameStop shares closed 1.7% lower in the regular trading session and further declined almost 0.6% in the after-hours session to $228.16.
Dogecoin is almost 0.5% higher during the last 24 hours and is trading at $0.3252 at press time.
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