What Are Meme Stocks?

Meme Stocks

With the recent GameStop craze / bubble, you may have heard the term Meme Stocks. So what exactly is a Meme Stock? A Meme Stock is simply a stock where the share price of that company is pushed either by internal or external forces significantly upwards in trajectory.

GameStop is a perfect example of this, trading between $10-$20 in December 2020 and sky rockets to over $400 in January 2021 and does so in a 2-3 day period. On top of this, Meme Stocks are generally shares of companies whose share price is pushed by external forces such as the Reddit message board WallStreetBets. Many of those users used the trading platform Robinhood.

Another characteristic of Meme Stocks is a low share price and high short interest. Typically the fundamentals of the company are lacking to say the least, however some such as Bed Bath & Beyond could be a turnaround story. Some current Meme Stocks besides GameStop are Bed Bath and Beyond, AMC Theaters, Nokia, Blackberry, iRobot, Koss Corp, Express, National Beverage Corp, Accelerate Diagnostics, and Advanz Pharm Corp.

We advise interested parties do their due diligence when investing / trading in these companies. By the time many hear about them, they are already too late to the party. Don’t be left holding the bag! BEARISH