Retail Investors Learn Hard Lessons as VinFast Shares Plummet After Massive Rally

Retail investors in the US stock market are engaging in speculative trading, reminiscent of the GameStop and AMC frenzy, bidding up obscure stocks only to see them crash spectacularly. The latest example is VinFast Auto Ltd, an unprofitable electric-vehicle maker whose stock soared 504% in a four-week trading frenzy before plummeting roughly 80% in eight days. This trend suggests that the greater fool theory has become a prominent feature of the investing landscape, where investors seek dream-like possibilities and manipulate stocks in lock-step. The boom in risky bets on companies going public through blank check deals, with limited stock floats, has drawn retail investors to social media platforms to drive up interest. Despite the record losing streak, VinFast's market value remains high, but the stock's still-lofty valuation may have further to fall.