Meme stock frenzy drives iRobot (IRBT) surge as U.S. government backs robotics sector. Stock breaks resistance, with 45% short float, potential for squeeze. Trading at 3.5x Nov. 20 price. But chasing meme stocks risky, detached from fundamentals, can lead to losses. IRBT rally may lack substance, risks outweigh potential gains.

IRBT’s weak Q3 earnings and declining revenue indicate challenges. Bullish momentum waning, RSI at 70. Stock still a penny stock, prone to extreme volatility and sharp reversals. Limited analyst coverage raises risk of sentiment-driven swings. Proceed with caution, as risks outweigh potential rewards for iRobot investors.

Read more at Yahoo Finance: Nearly 45% of Its Float Is Being Sold Short. Should You Bet on iRobot Stock Here?