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
Meme stocks are stocks that rise in popularity due to hype on social media, especially among retail investors.
2
The online forum Reddit, particularly the subreddit WallStreetBets, is a popular breeding ground for meme stocks.
3
Meme stocks often have their own online lingo and catchphrases used by online communities promoting them.
4
Sometimes, meme stocks are targeted by retail investors hoping to trigger a short squeeze.
5
Meme stocks are known for their high volatility, with prices fluctuating wildly based on online sentiment.
6
The price of a meme stock may not reflect the actual performance of the company behind it.
7
The meme stock craze initially took hold in early 2021, and while it has calmed down, it can still resurface.