meme stock

noun

plural meme stocks

: a stock (see stock entry 1 sense 2a) that experiences a temporary sudden surge in popularity and price due to a coordinated effort (such as a viral social media campaign) by small investors

… 'meme stock' refers to a stock that attains viral attention on social media platforms, but predominately Reddit.

—Andrew Rocco

The theory was that if enough small investors got in the game and drove the stock higher, it would force large hedge funds with short positions (bets that the stock would fall), to capitulate and sell those positions at a massive loss. … that dynamic appears to be driving the stocks of GameStop, AMC, and other so-called meme stocks.

—Michelle Chapman

Price spikes in several meme stocks appear to be linked to the amount of talk about them on r/WallStreetBets, a forum on Reddit, a discussion website whose users are known for mischief-making. From this comes the name: an internet meme being an idea or behaviour, usually a humorous one, spread via social media.

—The Economist

—often hyphenated before another noun

meme-stock investors

the meme-stock craze

Examples of meme stock in a Sentence

Recent Examples on the Web

Yet Trump Media has morphed into a multi-billion-dollar meme stock and a favorite way for traders to bet on how this election cliffhanger will end, inflating the net worth of its biggest shareholder along the way. —Matt Egan, CNN, 5 Nov. 2024

The sharp swings in DJT shares has prompted comparisons with a meme stock, or a company whose shares trade on social media buzz instead of traditional analytical measures such as revenue growth and profitability. —Aimee Picchi, CBS News, 29 Oct. 2024

There are bubbles and crashes and meme stocks, and front-running (legal and otherwise), and high-frequency algorithmic trading designed to exploit volatility rather than the fundamentals, hedge funds that trade numbers rather than companies, and so on. —George Calhoun, Forbes, 23 Oct. 2024

The meme stock company is looking raise more funds, filing for an offering of as many as 20 million shares. —Jim Cramer, CNBC, 11 Sep. 2024

Word History

First Known Use

2019, in the meaning defined above