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What is a Meme Stock, and What relevance does this hold?

Stock trading is a procedure of buying and selling a specific company stock to gain profits and a slice of the business. Earlier, there were different methods and types of stocks available in the stock universe, but as time goes on and everything is getting modernized and taken over socially, a meme stock has been introduced in 2020. A Meme stock is an asset of the company that has gained significant popularity due to the augmentation of social media culture. The research and resources behind this stock have been immense, as social media has massive analysis and exposure on websites like Reddit and followers on platforms like Facebook and Twitter.


Meme stock investors are usually a chaotic set of liberated individuals, each with their own investment thoughts and recommendations. Simultaneously, their independent decisions have resulted in starting with the short interest theory. Simply put, meme stocks can be highly overvalued to fundamental technical analysis. The first meme stock, GameStop (GME), is highly famous as the stock price knocked off x100 as the meme community had found relevance and similarity for the craft.


Meme stocks have created their lingos and vocabulary that has been used in social media and different other forums:-

  • Diamond hands – This slang is an expression that refers to holding on to volatile assets when there is a compulsion to sell. Although, it is mainly popular to tolerate high-risk investments such as meme stock. 

  •  BTFD – It is an acronym for “buy the f***ing dip.” Buying the dips refers to holding long on a stock after its price has declined in the near future and is meant to be repeated after each such spend.

  • FOMO – ‘Fear of missing out’ is a term used for traders because if they miss out on catching the meme stock wave, they will regret it.

  • Stonks – an ironic misspelled word for “stocks.” This lingo anticipates WallStreetBets and commonly portrays a roughly designed bald man wearing a suit and staring blankly at an arrow that is pointing upward to the price chart.

  • To the Moon – this term depicts that the meme stock will rise extremely high, as if to the distance of the Moon.

  • YOLO – ‘You only live once’ is a term used to describe that everyone should invest and trade in meme stock, as it is a growing network and will scale in the coming years.


Is investing in Meme Stock a real thing?

Meme stocks are available and listed on various exchanges like any other stock trading platform. However, the experts argue that their price performance and interest have less to do with their essentials and much to do with entertainment values such as investing in amusement, like casino games. Named after the viral internet meme templates found on social media, meme stocks discovered that the online community has formed around them to hype and boost up their curriculum.

As a result, booming the market with the support of young entrepreneurs, meme stock is aimed to scale in the future according to their strategy of coming up with the meme template lingos in the stock market. Moreover, to get updated with the latest social media trends and place an impact in the market, connect with Blockchain Tradein.

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