A look at the first meme stock helps to provide an idea of what can transform a stock into a meme stock. GameStop stock had a 140% short interest, making it highly susceptible to a short squeeze, akin to lighting a match in a kerosene-soaked warehouse. While meme stocks are often driven by hype, understanding the underlying fundamentals of the company can help you make more informed decisions. Look at factors such as the company’s financial health, business model, and growth prospects. Meme stocks are back in the spotlight after “Roaring Kitty,” the YouTuber behind the original meme stock frenzy, posted on X for the first time since 2021.

Monitor performance

Click the link below and we’ll send you MarketBeat’s list of ten stocks that will drive in any economic environment. Its shares jumped 15% on 14 October 2024, adding more than $500 million to Trump’s net worth. Ironically, this action actually reduces Euraud correlation the value of shares held by the speculators. But on Monday, one of the chief meme-stock cheerleaders, known by the online moniker Roaring Kitty, posted a meme signaling he was planning to become active again.

How meme stocks work

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• GameStop followed suit in 2021, raising nearly $1.7 billion via a secondary offering of 8.5 million additional shares at an average price of more than $200 per share.

Gill has become a hero online, known for continually professing how much he liked GameStop’s stock as it charged to heights in 2021 that professional investors saw as irrational. He even said it in testimony before Congress when it was looking into the meme-stock craze. While some thought that the meme stock craze would be short-lived, the phenomenon remains java developer hiring trends in force years later. Meme stock communities pumped the brick-and-mortar retailer Bed Bath & Beyond (BBBY) to extreme levels in the summer of 2022, when it was up 314% for a short period before crashing back down. In 2022, Bed Bath & Beyond announced intentions to sell 12 million shares in a secondary offering as meme stock promoters pumped the value of its stock. However, the stock fell steeply following the company’s announcement of the plan.

This website accurately tracks mentions of potential meme stocks on the subreddit r/WallStreetBets, the origin of the first meme stock in 2021, when GameStop experienced a short squeeze. Meme stocks are the shares of publicly listed companies that experience a sudden and quick upward market movement, largely due to discussions, memes and videos on social media platforms like Reddit. These online communities hold detailed discussions speculating on how a stock might perform. In general, many of the meme stocks that saw sky-high stock prices in 2021 have come down significantly in 2022. They are often now trading below where they started before the meme frenzy. Others, notably GameStop, remain elevated, although still far lower than its all-time highs.

One method for doing this is to look at 12-month share price forecasts, available via online investing platforms. Although GameStop’s share price subsequently fell, a fresh rally in May 2024 has sparked renewed interest in the concept of meme stocks. GameStop has been one of the biggest winners of the frenzy this week, along with AMC Entertainment (AMC).

Nokia Oyj’s 5-Year Share Price Performance

Expense ratios can be as low as 0.02%, meaning every $10,000 invested costs xor neural network $2 annually. AMC’s stock closed Tuesday at $6.85 and has risen 135% since Friday, but it’s a far cry from its all-time highs above $300 set in June 2021. GameStop’s stock price has gained 179% over the past two sessions, though at $48.75 it’s still well below its record of more than $85 in January 2021. SoFi’s financial services — all unified together via a singular app — got its start in the student loan niche of the industry.

Meme Stocks and Short Selling

When investors bet a stock’s price will go down in the future, they “short” it by borrowing shares and selling them. Later, if the price does indeed fall, the short sellers can buy the stock, return the borrowed shares and pocket the difference. Meme stock activity was given a great boost from bored individuals stuck at home during COVID-19 lockdowns combined with zero-commission brokerage apps like Robinhood.

Data analysis and trends

It’s my goal to ensure that as many people as possible can make informed decisions about their money, and get the most out of their finances with the least amount of stress. Most providers offer a dashboard where you can view the total value of your portfolio, and a breakdown of how each investment has performed. Many of the most popular providers allow users to open and manage their account online or via an app. Tax treatment depends on one’s individual circumstances and may be subject to future change. The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of tax advice. Investment experts caution that the stock’s latest rally could prove equally short-lived.

This is known as a short squeeze, and it accelerates a stock’s price increases as more and more short sellers are forced to bail out to cut their losses. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

The more irrational it is, the more likely short-sellers get involved and the more potential it has to short squeeze. Meme stocks are low-priced stocks that ran up in price for no particular fundamental reason other than short-squeezes perpetuated by retail investor enthusiasm and social media hype. The ridiculous nature of the underlying price move exposed it to ridicule with clever memes that would gain popularity and go viral. Meme stocks are closer to penny stocks than blue-chip stocks and don’t pay dividends. While it is possible to profit from meme stocks, it is an extremely risky endeavour.

The company saw sales decline when it failed to keep pace with rapidly evolving smartphone technology in the late 2000s and early 2010s. To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive payment from the companies that advertise on the Forbes Advisor site. This Canadian company is known for pioneering the smartphone, but it quickly went by the wayside when Apple revolutionized the space. These days, Blackberry is a software firm that provides endpoint security software and other Internet of Things management products for customers such as the auto industry. Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. While Tupperware Brands currently has a “Hold” rating among analysts, top-rated analysts believe these five stocks are better buys.