“It’s just like wearing the trendiest clothes or knowing the latest viral challenge, people use social media as a way to connect and get views,” said Giles. “Hearing the latest stock trend is fun and makes people feel like they are ‘in the know.’ It also makes people dream about what it would be like to get rich. This article explores the meaning of a meme stock, what causes it and what are its likely consequences for the investor. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. He’s written over 1,000 articles to help readers understand complex crypto and investment subjects, as well as to find the best cryptocurrency products to meet their needs.
This trend has been continuing so far in 2025, with BYD outpacing Tesla not only in China but in crucial markets such as Europe. Once upon a time in the 17th century, Dutch traders turned tulip bulbs into gold, until the bubble burst. This infamous example of financial folly reflects a timeless pattern of human behavior. A fact perhaps pointing to the latter is how coy they got about what they said in the tweet questrade forex claiming they understood the short interest better than the general investing public. During the summer of 2020, activist-investor Ryan Cohen argued that GameStop could be a great investment.
However, in the last few years, exposure to stocks with high short interest or exposure to the best meme stocks has done wonders. The focus of this column is on meme stocks to buy that can skyrocket in the next few months. These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .
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- However, many naive investors have cheered this refinancing deal as if it were a cure for cancer, completely ignoring the fact that Tupperware’s fundamentals still look like an expired casserole.
- The origins of the official meme stocks can be traced down to the summer of 2020 when people were becoming increasingly bored by the restrictions imposed due to the COVID-19 pandemic.
- Furthermore, associating certain stocks with certain ideas and emotions is very important.
Pamela is a firm believer in financial education and closing the generational wealth gap. She got into journalism to tell the kind of stories that change the world, in big and small ways. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Investing can be the most surefire path to becoming and remaining financially free. Rivian is currently in the midst of “production hell,” a phrase coined by Tesla CEO Elon Musk when his company was trying to ramp up factory production to stem cash losses.
- While Tupperware Brands currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.
- Meme stocks lure investors with the promise of potentially big returns in little time.
- As bond yields spike, recession fears loom, and market volatility worsens, DJT holders are busy posting memes and shouting “To the moon!
- The social media world has given a much greater voice and larger platform to the average investor, who doesn’t have as many resources as a hedge fund for example.
Its free cash flow was negative $1.5 billion in the first quarter of 2024. Rivian needs to get itself to breakeven before its cash and short-term investment balance ($6 billion at the end of March 2024) dries up. Fartcoin is currently the top project by social engagement, signaling intense community energy. Bowlero is an interesting company because it has invested heavily in M&A within the industry. It’s also interesting because bowling is an activity or sport that doesn’t get a lot of attention.
What Did the Authorities Say About GME? 💬
Intentional or not, Musk’s continued and increasing presence in the public conscience is sure to only increase his influence. Due to their very nature, memes can influence us profoundly both on a conscious and subconscious level and lend themselves well to marketing, propaganda, and opinion-shaping. This means that they, among other things, have always had great power to influence our purchases both in the supermarket and on the stock market. Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.
In late January 2021, they tweeted that the Reddit crowd has a losing crowd and GameStop is about to crash down $20 very soon. Obviously, the future isn’t guaranteed to be rosy and it might lead to a bizarre form of corporate populism. You think that the ruling in the Nestle child slavery case is outrageous and that the chocolate giant should suffer? You found a really good startup still struggling to escape the penny stock phase?
The Future of Meme Stocks 🗓
Bear in mind that meme stocks can be especially volatile, so plan accordingly and be prepared to continue investing more over time. The meme coin market is surging again, with the total market cap reaching $70 billion as trading volumes pick up across exchanges. As the hype around meme coins like Pepe continues to grow, investors are looking for the next big thing that will bring big returns to early investors. Individuals on popular social media sites like Reddit, X and Facebook now regularly discuss the class of shares known as meme stocks. The company hired some of the key people of the online retailer Chewy in early January indicating its willingness to grow out of its brick and mortar shoes.
One example is the VanEck Social Sentiment ETF (BUZZ -0.55%), an actively managed portfolio of 75 stocks that rank high in social media conversations. Top holdings in the portfolio include Robinhood Markets, Microstrategy (MSTR 0.72%), and Palantir. This ETF has an annual expense ratio of 0.75% (meaning it costs $7.50 per year for every $1,000 invested).
JOBY stock has been relatively subdued, with returns of 24% in the last 12 months. However, business developments point to a bigger rally in the coming quarters. Recently, Joby announced the progress to the next phase of its aircraft flight test program. The company will use its production prototype aircraft to prepare for upcoming for-credit flight testing. I believe that it’s a good time to remain invested What Is the S&P 500 in cannabis stocks. Further, with the presidential election around the corner, cannabis stocks will likely witness price action.
The future of meme stocks
However, significant volatility among the meme stocks can spark some volatility in the index, and it remains one of the more popular choices on social media, perhaps for the ease of options access. We want to clarify that IG International does not have an official Line Forex timeframe account at this time. We have not established any official presence on Line messaging platform. Therefore, any accounts claiming to represent IG International on Line are unauthorized and should be considered as fake. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.
Other meme stocks emerged after GameStop, some with varying degrees of success. On one hand, as we’ve said, ideally all prices should accurately reflect the state of the company they belong to. On the other hand, it isn’t like big-name investors haven’t been using online platforms to inform their audiences which stocks they were going to buy, which they were going to short, etc.
And if you are a FOMO-type person, you may enjoy being part of the action. To participate, you need to be connected to the relevant social media sites. Also, no research or knowledge of the stock market or the company you invest in is required. Meme stocks are a relatively new phenomenon, beginning in late 2020 and early 2021. According to the Corporate Finance Institute, it was then that online groups and communities developed interest in select companies’ shares and generated positive stories that they posted online to attract buyers.
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PayPal offers an online wallet solution what allows you to make and receive payments from companies and individuals without having to share your financial information, which adds a layer of security to the process. Tesla is the original electric vehicle (EV) trailblazer, and at times has been ‘worth’ more than every other car manufacturer in the world combined. For context, the stock was worth more than $400 three years ago, has fallen to less than $200 today — and is up more than 1,100% over the past five years. Semiconductor giant Nvidia reports earnings next week, and all eyes are on the stock as the bellwether for the AI-fuelled surge in tech stocks. AMC has in the past diluted shareholders when it spikes in order to take advantage of the financial optionality created by meme volatility. Despite the often-flawed analysis involved in these discussions, because of the high volume of participants, these forums have been known to influence the markets in unexpected ways.