The US stock market took a tumble early in August 2024 as fears rose of an economic slowdown. Then a few days later calm was restored, reminding us how quickly things can change in the financial world.
And of all the market rises and falls, one type of stock has become particularly volatile. Known as “meme stocks”, they are shares that gain viral popularity with large numbers of investors through social media.
This means that meme stocks often have a price which doesn’t reflect the true estimated value of the firm that has issued them. One of the most famous is GameStop, which soared in value earlier this year, apparently in response to a single posting by an influencer known as Roaring Kitty.
