ZOM Stock: Is Zomedica Out of Favor With Meme Stocks Investors?

Today, investors in Zomedica (NYSEMKT:ZOM) and ZOM stock have seen gains of approximately 5%. Today’s move appears to be a reversion of some pretty negative momentum in ZOM stock of late. In fact, over the past month this stock has been down roughly 30%.

a puppy and a kitten sniggling together. represents pet stocks

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Now, let’s not forget this stock has been a 4-bagger for investors since the beginning of the year. Indeed, this trade still appears to have legs among the retail crowd. There’s still a ton of excitement around this name, and Zomedica certainly has the potential to turn around from here. Indeed, a significant amount of excitement following the company’s announced commercialization of its TRUFORMA platform sent this stock climbing.

However, investors appear to be antsy with respect to a lack of updates on this front. Worse, social media-related sentiment doesn’t appear to be as strong as it once was with this stock. Therefore, worries are building that ZOM stock’s recent declines may be more indicative of a longer-term trend at play here.

Let’s dive into what investors are looking at with Zomedica today.

Has ZOM Stock Lost Favor With the Retail Crowd?

An interesting report from Bloomberg today highlighted this sentiment shift in more detail. The article poses the idea to investors that “in the twitchy world of meme stocks, Brooklyn ImmunoTherapeutics Inc. is in and Zomedica Corp. may be out.”

The reason for this? Well, retail investors appear to be heavily trading other biotech stocks right now. Other biotechs such as Brooklyn ImmunoTherapeutics have a much better story than that of Zomedica. And that’s enough to change the game when it comes to picking these speculative small-cap stocks today.

The rise of the retail investor makes picking winners difficult in this environment. Indeed, investor preferences change, and investors banking on big wins with such stocks are betting heavily on the story rather than the fundamentals.

While it’s likely too early to tell which direction Zomedica stock will trade in the near term, this idea is intriguing. Investors ought to take such concerns into consideration before buying any highly touted speculative stock today.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Article printed from InvestorPlace Media, https://investorplace.com/2021/04/zom-stock-is-zomedica-out-of-favor-with-meme-stocks-investors/.

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