Understanding Meme Stocks | Money Masters

Understanding Meme Stocks

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A meme stock is a publicly traded company, popularized by an online cult following, often despite its lack of fundamental value. GameStop Corp (GME) and AMC Entertainment Holdings Inc. (AMC) are two of the most well-known meme stocks. Both brick-and-mortar businesses took a particularly hard hit during the Covid-19 pandemic and were also already being threatened by the increasing dominance of online retailers and streaming services.

Meme stocks arise from several phenomena particular to our internet age: popular social media platforms, an unprecedented access to investment platforms, and a reaction to larger, institutional investors.

Meme stocks arise from several phenomena particular to our internet age: popular social media platforms, an unprecedented access to investment platforms, and a reaction to larger, institutional investors.

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