After a logic-defying 2021, the meme stock frenzy has made a return of late. Individual traders’ willingness to jump on riskier trades and bet against short-selling hedge funds has led the frenzy to make a comeback, as was evidenced during the recent skyrocketing rally of Bed Bath & Beyond Inc. (BBBY). However, the stock has fallen drastically since late August.
The rapid up move in meme stocks that are not backed by fundamentals or positive news has always had a terrible ending. Despite significant gains, most meme stocks slumped to record lows, wiping out almost all of their gains from the short-lived rallies.
