What does meme mean?
Are there meme stocks?
Meme coins or meme stocks
are currencies or stocks that gain huge and rapid popularity among individual investors (small traders) through social media platforms like Reddit, X, YouTube, and Telegram.
They are promoted through "memes" (humorous or viral images or videos) instead of traditional financial analyses. This hype leads to sharp rises or falls in the prices of currencies or stocks, making them highly volatile, and often not supported by strong economic fundamentals.
The main driver of these memes:
In currencies, everyone knows what the driver is, but in stocks, individual traders encourage each other to buy the stock to "punish" large investment funds (like hedge funds) that are in short positions, leading to a "short squeeze" where they are forced to buy the stock to cover their losses, causing the price to rise further.
Risks: High volatility, rapid loss of value, and often unsuitable for novice or long-term investors, as emotional factors dominate decisions.
Examples of memes:
- Currencies: 90% of currencies have this approach.
- American stocks:
GME
AMC
BBBY
BB
OPEN
