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Definition: meme stock


A publicly traded equity that is popular because a post on social media goes viral. For example, in 2021, GameStop jumped from $20 a share to nearly $350 in two weeks because hedge funds had shorted the stock and a Reddit post encouraged people to buy it out of revenge. The stock dropped precipitously into the $40's but rose into the 200+ range within a couple months. The early adopters who cash out of meme stocks make the money. See meme and meme coin.