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StockCram is not a broker-dealer, investment adviser, or financial institution. All content is for educational and informational purposes only and should not be construed as personalized investment advice. Consult a qualified financial professional before making investment decisions. Past performance does not guarantee future results.Simple Definition
A stock that goes viral on social media and skyrockets due to retail investor hype rather than fundamentals.
Why It Matters
GameStop in January 2021 changed everything. Reddit's WallStreetBets community coordinated to squeeze short sellers, sending GME from $20 to $483 in weeks. AMC, Bed Bath & Beyond, and others followed. Some made fortunes; many more lost them. Meme stocks proved that social media can move markets - but also that what goes up on hype usually comes down hard.
Key Points
- Driven by social media momentum, not company fundamentals
- Extremely volatile - can double or halve in a single day
- If you're not early, you're the exit liquidity for those who were
Related Terms
Common Questions
A stock that goes viral on social media and skyrockets due to retail investor hype rather than fundamentals. GameStop in January 2021 changed everything. Reddit's WallStreetBets community coordinated to squeeze short sellers, sending GME from $20 to $483 in weeks.
GameStop in January 2021 changed everything. Reddit's WallStreetBets community coordinated to squeeze short sellers, sending GME from $20 to $483 in weeks. AMC, Bed Bath & Beyond, and others followed. Some made fortunes; many more lost them. Meme stocks proved that social media can move markets - but also that what goes up on hype usually comes down hard.
Driven by social media momentum, not company fundamentals
Extremely volatile - can double or halve in a single day
If you're not early, you're the exit liquidity for those who were