Reddit and Trump Media have recently made headlines as the first notable social media companies to go public in the last five years. Both companies have quickly become meme stocks, attracting significant attention from investors despite uncertain profit prospects.
Meme stocks are characterized by a disconnect between a company's stock price and its actual business performance. These surges are often fueled by individual investors who believe in a company's potential turnaround, oppose short sellers, support specific figures like former President Donald Trump, or simply seek financial gain.
