Definition Of Meme Stock

Meme stock communities can thus greatly influence the prices of those shares through coordinated efforts to, for example, initiate short squeezes in heavily shorted names. A meme stock is a stock that has seen an increase in volume not because of how well the company performs, but rather because of hype on social media and online forums like Reddit. Instead, a meme stock label is a part of the language of the Internet. For this reason, these stocks often become overvalued, seeing drastic price increases in just a short amount of time. Meme stocks are both like memes (due to their potential for viral popularity) and influenced by memes and internet trends. Though there is a potential for monumental gains, meme investors are more likely to. The concept of a meme stock is a new one, and there's no single definition or official designation. In meme stock, the word meme is used in the sense of a cultural item (such as an image, video, or phrase) that is popularly spread on the internet (and often altered in a humorous way). A meme stock's value is a result of its hype on social media and not necessarily the company's performance. Definition and Examples of a Meme Stock.