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Meme stock

From EverybodyWiki Bios & Wiki


Meme stock is a term used to describe a stock which is heavily trending on social media sites[1], bought by a large amount of small individual investors[2], causing in a short amount of time, surging price[3], high volatility and high trade volume[4]. Meme stocks have become increasing common in the late 2010s and particularly in 2020-2021[5]. Online investing communities such as r/wallstreetbets on Reddit and Stockwits, are important drivers for meme stocks[6]. Meme stocks tend to be companies which are well know to the public at large and have had long trends of declining prices due to falling earnings[7] and prospects of bankruptcy[8][9]. They usually have high short floats[10], thus making them vulnerable to a short squeeze and makes it easier to inflate their prices.[11] Investors for meme stocks tend to be younger adults. Critics worry the meme stock booms are speculative bubbles[12] and connected to illegal market manipulation[13]. Stocks which have become meme stocks are Hertz, Kodak, GameStop, AMC, Blackberry, Nokia, Bed Bath & Beyond, ect.[14] [15]

Possible causes:

• A culture of taking massive gambles on the stock market in the hopes of making money quickly.[16]

• Anger towards Wall Street hedge funds for their role in the financial crisis of 2007 and 2008.[17]

• Buying stocks to try to help struggling companies, while viewing shorters as hurting them.[18]

• Commission-free trading, which has opened the stock market to a wider public.[19]

• COVID-19 restrictions leading to more time spend online and investing using stimulus checks.

Common words and phrases of meme stock investors are:[20] [21]

Stonks: An intentional misspelling of stocks.[22]

Diamond hands: When a trader is prepared to hold onto their stocks or securities for a long time.

Paper hands/Weak hands: When a trader is not prepared to hold onto their stocks or securities for a long time.

Rockets: When someone wants a stock price to skyrocket.

“To the moon”: When someone wants a stock price to skyrocket to a very high level.

Hold the line: Holding on to a stock, even if it goes down in value.

"We like the stock": A meme used for a currently trending stock.

References[edit]

  1. https://www.cbsnews.com/news/meme-stocks-reddit-wallstreetbets-amc-nokia-stock/
  2. https://marker.medium.com/gamestop-proves-were-in-a-meme-stock-bubble-b3f39163a77f
  3. https://finance.yahoo.com/news/still-16-meme-stocks-least-162201532.html
  4. https://www.marketwatch.com/story/gamestops-stock-surge-is-making-it-one-of-the-most-traded-in-the-u-s-11611767301
  5. https://trends.google.com/trends/explore?date=all&q=meme%20stock
  6. https://blog.mywallst.com/what-is-a-meme-stock/
  7. https://www.bbc.com/news/business-55817918
  8. https://www.latimes.com/business/story/2020-06-08/bankrupt-stock-hertz
  9. https://www.thegamer.com/forget-gamestop-blockbuster-stock-surging/
  10. https://www.highshortinterest.com/
  11. https://www.investopedia.com/terms/s/shortsqueeze.asp
  12. https://www.wsj.com/articles/gamestop-is-a-bubble-in-its-purest-form-11611756239
  13. https://www.reuters.com/article/us-retail-trading-gamestop/sec-studies-social-media-posts-for-signs-of-fraud-in-gamestop-frenzy-bloomberg-idUSKBN2A32XT
  14. https://www.businesstimes.com.sg/companies-markets/year-of-the-meme-stock-hertz-kodak-top-2020-list
  15. https://finance.yahoo.com/news/still-16-meme-stocks-least-162201532.html
  16. https://ca.finance.yahoo.com/news/generation-investors-treating-stock-market-170305579.html
  17. https://www.bloomberg.com/opinion/articles/2021-01-27/gamestop-short-squeeze-is-rage-against-the-financial-machine
  18. https://www.independent.ie/business/explainer-is-saving-gamestop-from-short-sellers-a-peasants-revolt-against-wall-street-or-an-internet-meme-that-will-leave-little-guys-carrying-big-losses-40022421.html
  19. https://www.cnbc.com/2019/12/04/robinhood-co-ceo-10-million-users-are-a-testament-to-our-mission.html
  20. https://www.cnet.com/personal-finance/gamestop-stock-spike-lingo-heres-what-reddits-wallstreetbets-vocabulary-means/
  21. https://www.reddit.com/r/wallstreetbets/
  22. https://knowyourmeme.com/memes/stonks


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