meme stock

A meme stock is a share of a company that quickly jumps in price due to a dedicated online following. Meme stocks are usually struggling companies that have gained a cult-like following on social media, which can influence share prices.

Historical perspective: GameStop is considered the original meme stock due to it's meteoric rise fueled by a massive short squeeze in early 2021. It became so popular that it even inspired a documentary and a movie in theaters. AMC was also considered a meme stock that year when retail traders on Reddit threads encouraged the purchase of shares while institutional investors were trying to short the beaten-down stock.

In 2024, "Roaring Kitty" (real name Keith Gill) woke up the degens again. He amassed a legion of disciples with his promotion of unloved stocks and tapped into a common YOLO ethos amongst young people who also worry they will never make enough money to reach the milestones prior generations did. They coordinate trades on platforms like Discord. Apparently when the degens stick together, they have the potential to spark wild swings in assets, and disrupt traditional stock trading.

See also : common stock preferred stock YOLO degen newsgroups

NetLingo Classification: Online Business

meme stock

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