meme stock
A meme stock is a share of a company that quickly jumps in price due to a dedicated online following. Meme stocks are usually struggling companies that have gained a cult-like following on social media, which can influence share prices.
Historical perspective: GameStop is considered the original meme stock due to it's meteoric rise fueled by a massive short squeeze in early 2021. It became so popular that it even inspired a documentary and a movie in theaters. AMC was also considered a meme stock that year when retail traders on Reddit threads encouraged the purchase of shares while institutional investors were trying to short the beaten-down stock.
NetLingo Classification: Online Business
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