The term “meme stocks” was made popular in 2021 when retail traders banded together to buy Gamestop (GME) stock en masse, sending the stock price up 1,915% in a matter of weeks on seemingly no news around company fundamentals or the Gamestop business model. The stock subsequently crashed back down to earth in price. These traders have often targeted stocks with a high amount of short sale interest, as a rush of buying activity can squeeze out short sellers and violently propel the stock price upward.
In this week’s Market Note, we illustrate five stocks that have recently seen a significant amount of retail investor buying activity―perhaps a sign that “meme stocks” have returned as a market theme for certain unloved stocks.
The Verus Market Note provides market commentary along with relevant charts and graphs. Each week, we highlight a key story from the finance world that we believe will pique your interest. While these insights are meant to inform and enrich your understanding of the current market landscape, they do not constitute investment advice or a recommendation to buy, sell or hold a particular security or pursue a particular trading strategy.
