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  3. Meme Stock

Meme Stock

steadyfirst seen 2021 — Reddit and financial media0

what it means

The value comes from coordination and attention. Meme stocks move on forum sentiment, and the disconnect from fundamentals is the defining feature.

A stock whose price is driven by online enthusiasm rather than company fundamentals.

the origin story

The term emerged around the January 2021 GameStop short squeeze, when retail investors organised on Reddit drove extraordinary price movements.

the lore

The episode prompted congressional hearings in the US and lasting changes in how brokerages and regulators think about coordinated retail activity. The term stuck as a permanent category in financial vocabulary, which is unusual for slang born on a forum.

in the wild

About a price move

It's up 400% and the company loses money.

Meme stock.

About the mechanism

What's driving it?

A forum. That's genuinely the answer.

how to use it

when to use
  • Describing sentiment-driven stocks
  • Discussing retail investing
  • Referencing 2021 market history
when not to use
  • As investment advice
  • For any volatile stock
  • Professionally without acknowledging the specific mechanism

related terms

CopiumDiamond HandsRecession IndicatorStonksNPCCatfish

receipts

  1. 1.Wikipedia: Meme stock
  2. 2.Know Your Meme: GameStop Short Squeeze

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