Don’t rely on social media tips, EU watchdog warns retail investors

LONDON (Reuters) – Retail investors should avoid using unverified information from social media to buy and sell stocks, the European Union’s markets watchdog said on Wednesday.

Retail investors following the Reddit forum WallStreetBets in the United States piled into GameStop Corp last month, sending shares in the retailer rocketing at the expense of prominent investors who had bet against the stock, ringing alarm bells in Europe.

“A key step for any investor before making an investment decision is to gather investment information from reliable sources, while keeping in mind one’s investment objectives, the benefits of diversification and the ability to bear losses,” the European Securities and Markets Authority said in a statement.

(Reporting by Huw Jones; editing by Jason Neely)

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