⁠What Are Meme Stocks?

Orange Lightning

Fueled by online buzz, meme stocks surge in popularity, but their wild swings and dependence on social media hype make them risky bets, here are some things to know.

1

Social Media Stars

Meme stocks are stocks that rise in popularity due to hype on social media, especially among retail investors.

2

Reddit Rules

The online forum Reddit, particularly the subreddit WallStreetBets, is a popular breeding ground for meme stocks.

3

Viral Vocabulary

Meme stocks often have their own online lingo and catchphrases used by online communities promoting them.

4

Short Squeeze Science

Sometimes, meme stocks are targeted by retail investors hoping to trigger a short squeeze.

5

Risky Rollercoaster

Meme stocks are known for  their high volatility, with prices fluctuating wildly based on online sentiment.

6

Fundamentals Fade

The price of a meme stock may not reflect the actual performance of the company behind it.

7

2021 Frenzy

The meme stock craze initially took hold in early 2021, and while it has calmed down, it can still resurface.