What Are Meme Stock

A meme stock is a stock that has gone viral online, drawing the attention of retail investors. A meme is a broad term that's used to define any running joke or idea that gets recycled on the internet, particularly through social media channels. Though there is a potential for monumental gains, meme investors are more likely to. In contrast, prices of meme stocks are closely tied to sentiment and chatter among day traders. A meme stock is a stock that gains popularity among retail investors through social media. In a traditional buy-and-hold strategy, investors seek stocks whose shares appear undervalued relative to the company's fundamental worth or growth potential. Meme stocks are company shares that have gone viral due to popularity among retail investors on social-media platforms. Meme stocks usually gain popularity through discussion. A meme stock is widely considered to be a stock of a company that has gained significant traction with one internet community or another. 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.