Most Volatile US Stocks in 2021: A Deep Dive

The stock market can be a rollercoaster ride, and the volatility of certain stocks can make or break investors. In 2021, the United States saw some stocks that experienced extraordinary price fluctuations, making them the most volatile of the year. This article delves into the top five most volatile US stocks of 2021, analyzing their performance and factors that contributed to their extreme volatility.

1. AMC Theatres (AMC)

AMC Theatres, the largest movie exhibitor in the United States, topped the list of most volatile stocks in 2021. The stock skyrocketed after AMC announced that it would start accepting cryptocurrency payments for movie tickets, sending the share price soaring. However, the stock took a nosedive in late 2021, as the company's financials took a hit due to the ongoing pandemic and competition from streaming services.

2. Tesla (TSLA)

Tesla, the electric vehicle manufacturer, was another volatile stock in 2021. The stock experienced significant price swings throughout the year, driven by CEO Elon Musk's tweets and the company's expansion into new markets. In January, the stock surged to an all-time high, reaching $875 per share. However, it took a dive in April after a bearish report from JPMorgan Chase & Co.

3. Coinbase (COIN)

Coinbase, the largest cryptocurrency exchange in the United States, was also among the most volatile stocks in 2021. The stock soared after the company's initial public offering (IPO) in April, reaching a peak of $429.54 per share. However, the stock took a nosedive in May, as concerns about regulatory scrutiny and competition from other exchanges weighed on investors.

4. GameStop (GME)

GameStop, the video game retailer, experienced an extraordinary surge in 2021, driven by a "Reddit army" of investors who banded together to drive up the stock price. The stock soared from 17 per share in January to over 350 in January 2021. However, the stock took a dive in February, as regulators and short sellers targeted the stock.

5. Roku (ROKU)

Roku, the streaming device manufacturer, was another volatile stock in 2021. The stock soared in February after the company reported strong subscriber growth and revenue, reaching a peak of $528.49 per share. However, the stock took a dive in March, as concerns about competition from other streaming devices and regulatory scrutiny weighed on investors.

Conclusion

The volatile nature of the stock market can make it challenging for investors to predict stock price movements. However, understanding the factors that contribute to a stock's volatility can help investors make informed decisions. The five most volatile US stocks in 2021 – AMC Theatres, Tesla, Coinbase, GameStop, and Roku – demonstrate the impact of market sentiment, regulatory scrutiny, and company performance on stock prices. As investors continue to navigate the turbulent stock market, staying informed and patient will be key to success.