Meme Stock

Extracted Attributes

• Origin Year

  2020

• Primary Drivers

  Social media sentiment, internet memes, and retail investor enthusiasm

• Common Platforms

  Reddit (r/wallstreetbets), X (formerly Twitter), TikTok, and Robinhood

• Investor Profile

  Typically young and inexperienced retail investors

• Performance Metric

  Up to 160% annual performance in some cases

• Market Characteristics

  High volatility, speculative trading, and valuations untethered from fundamentals

Timeline

• The U.S. Securities and Exchange Commission identifies the start of the 'meme stock phenomenon'. (Source: Wikipedia)

  2020-01-01

• GameStop (GME) experiences a massive short squeeze, with the stock price rising as much as 100 times over several months. (Source: Investopedia)

  2021-01-01

• Trump Media & Technology Group (DJT) debuts on the public market via a SPAC, quickly becoming categorized as a meme stock. (Source: All-In Podcast Episode 172)

  2024-03-26

• Meme stocks remain an evolving part of the financial landscape, continuing to experience surges driven by online hype. (Source: XTB Education)

  2025-01-01

Meme stock

A meme stock is a stock that gains popularity among retail investors through social media. The popularity of meme stocks is generally based on internet memes shared among traders, on platforms such as Reddit's r/wallstreetbets. Investors in such stocks are often young and inexperienced investors. As a result of their popularity, meme stocks often trade at prices that are above their estimated value – as based on fundamental analysis – and are known for being extremely speculative and volatile.

Web Search Results

• Meme stock - Wikipedia

  A meme stock is a stock that gains popularity among retail investors through social media. The popularity of meme stocks is generally based on internet memes shared among traders, on platforms such as Reddit's r/wallstreetbets. Investors in such stocks are often young and inexperienced investors. As a result of their popularity, meme stocks often trade at prices that are above their estimated value – as based on fundamental analysis – and are known for being extremely speculative and volatile [...] Interest in meme stocks started in 2020, in what the U.S. Securities and Exchange Commission has called a "meme stock phenomenon". The stock of American video game retailer GameStop has been one of the most popular meme stocks, with mass purchases of the stock leading to a short squeeze on GameStop in early 2021. The stock of the entertainment company AMC is also cited as a prominent example. Other examples include the stocks of Bed, Bath & Beyond, National Beverage, and Koss. The distinction [...] Some meme stocks have often become popular among retail investors after being targeted by short-selling professional investors, such as hedge funds, with participants having the explicit aim of causing losses among those firms. News coverage has described the choice to purchase such stocks as an act of rebellion intended to humble short-selling professional investors.

• What Are Meme Stocks? Why They're Surging in 2025

  At its core, a meme stock refers to a publicly traded company whose stock price experiences rapid and extreme fluctuations, often driven by online communities, rather than traditional financial metrics. These stocks typically gain momentum through viral internet memes, catchy slogans, and grassroots online movements — not based on company fundamentals. The rise of meme stocks is closely tied to the democratisation of information and the power of social media to amplify individual voices. [...] In conclusion, meme stocks represent a unique intersection of finance, technology, and online culture. They continue to capture the attention of investors and market observers alike, challenging traditional views of how markets behave and who can influence them. While meme stocks have shown that collective sentiment and social media can move markets, they have also highlighted the importance of approaching such trends with caution. [...] Whether driven by humour, rebellion, or curiosity, the meme stock phenomenon remains an evolving part of the financial landscape in 2025. For some investors, it may offer learning opportunities about market psychology and volatility. For others, it serves as a reminder of the risks involved in following market trends based on online hype.

• Meme Stocks: Up to 160% Annual Performance

  A meme stock is a share of a company that quickly jumps in price due to the attention of a dedicated online following. Meme stocks usually gain popularity through discussion threads on community forum sites such as Reddit and social media platforms. The first successful meme stock was GameStop Corp (GME) U.S. Securities and Exchange Commission. Staff Report on Equity and Options Market Structure Conditions in Early 2021. Accessed May 14, 2024. View all sources . [...] ## How meme stocks work Without their cult followings, meme stocks are not necessarily valuable assets. These online communities, such as the popular Reddit forum WallStreetBets, coordinate buying and selling efforts to influence stock prices. With enough online support, meme stocks can maintain elevated stock prices regardless of the underlying company's worth. [...] While it is possible to make money with meme stocks, it is an extremely risky venture. Meme stock investing relies on trying to time the market, which humans, even those professionally trained, are notoriously bad at. It also depends on knowing which stocks will pop and which won't — which is essentially impossible.

• What Are Meme Stocks? Origins and Impact

  Meme stocks are shares of companies that gain sudden popularity, often driven by online social communities rather than traditional financial fundamentals. Unlike stocks that perform based on a company’s revenues, profits, or growth potential, meme stocks trend due to internet buzz, virality, or coordinated group enthusiasm. They typically have a passionate online following, with retail investors rallying together to buy and hold the same stock. [...] At its core, the meme stock craze epitomizes the growing influence of social media platforms like Reddit, Twitter, and TikTok on investment behavior. Retail investors noticed that institutional players, such as hedge funds, had taken significant short positions against GameStop, essentially betting the company’s stock price would fall. [...] At Howland Capital, we see the meme stock phenomenon as an important discussion point in today’s investing world—a reflection of how technology and culture are reshaping markets. However, we do not advocate trying to chase trends or time the market. Our investment philosophy is steady and disciplined: we are long-term investors who choose investments based on solid company fundamentals and sound management teams. We manage client portfolios that are tailored to their values and needs

• What Are Meme Stocks and Are They Real Investments?

  A meme stock refers to the shares of a company that have gained viral popularity due to heightened social sentiment. This is usually due to activity online and particularly on social media platforms. These online communities can dedicate heavy research and resources toward a particular stock. Meme stocks often have heavier discourse and analysis in discussion threads on websites like Reddit and posts on platforms such as X (formerly Twitter) and Facebook. ### Key Takeaways [...] Meme stocks are shares of companies around which online communities have formed to promote and build narratives. GameStop (GME) is widely regarded as the first meme stock. GameStop's price rose as much as 100 times over several months when its meme community crafted a short squeeze. Meme stocks have generated slang and language that's used in online forums and social media. [...] ## Why Are They Called Meme Stocks? A meme is an idea that spreads rapidly among people. Memes began to take the form of humorous social media posts and viral videos with the advent of the internet. Meme stocks are so named because ideas about them spread rapidly on social media and web forums. Communities are built around them that promote the hype and elaborate on the original meme, inventing specific terms and symbols to accompany the stock. ## Is There a Meme Stock ETF?