Quicktake
Some stocks are prone to sudden rallies and swift declines, not because their underlying businesses have changed but because of the influence of social media personalities. GameStop Corp. reawakened the “meme stock” animal spirits twice since May, spurred by a well-known Reddit user who set off the first frenzy in 2021. A smattering of meme moments this year have caused multibillion-dollar stock moves — and big losses for investors who were late to the trade.
Meme stocks tend to share several characteristics — including that they catch the internet’s imagination and get promoted on social media by influential retail investors. The posts are often accompanied by images or videos — memes — that incorporate pop culture references.
