Thursday, July 1, 2021

Meme stocks

Meme stocks are stocks that see sudden and dramatic surges thanks to social media hype (primarily Reddit, Twitter and Tik Tok).
The first prominent example of a meme stock in 2021 was struggling video game retailer GameStop (GME). The stock traded $19 per share at the start of the year, but by January 28, it hit an all-time high of $483 per share.
FOMO is one of the main drivers of investor buying. The term FOMO is an acronym that stands for the ‘fear of missing out’, originally coined by Patrick J. McGinnis in 2004 and used largely by the highly connected millennial and Gen Y generations.

Much of the manic interest in speculative stocks is gone now. (July 20, 2021) 


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