Wealthsimple adds 'risky' label to GameStop, BlackBerry stocks amid investor frenzy

GameStop stock crumbles, but damage is done Technology analysts Carmi Levy and Shruti Shekar look at the GameStop saga as the stock plummeted, but not before hurting Wall Street.

Canadian investing app Wealthsimple is labelling some stocks as "risky" after a volatile week for shares of GameStop, BlackBerry and other social media darlings.

The GameStop stock page on Wealthsimple's app advises users that the ticker, GME, is considered risky and that traders should expect high volatility.

The Toronto-based robo-adviser suggests that investors who want to trade the stock place a limit order with a set price.

AMC Entertainment and BlackBerry stocks also carry a warning on the app after prices whipsawed this week, posting steep gains or losses from day to day.

Wealthsimple has said it will not restrict trading on certain securities, after TD said it would increase margin requirements for short-selling and uncovered options of GameStop, Express Inc. and AMC Entertainment Holdings Inc. on the New York Stock Exchange.

But Wealthsimple chief investment officer Ben Reeves says on the company's website that followers of the GameStop frenzy could end up being worse off from the trend, adding that trading based solely on online forums is a "pretty lousy strategy."

This report by The Canadian Press was first published Jan. 29, 2021