Newsletter #75 - Meme stocks

Insights: What are meme stocks? How communities mobilise capital & markets quickly

  • Meme stocks are transforming the market
  • NC Team picks: emotional design; delegating work
  • We’re hiring; join the NewCampus team

#TRENDS

🚀 The meme stocks keep coming

  • When investment meets social media - Ever since retail traders drove a record rally in shares of GameStop earlier this year, a new term has emerged on Wall Street: meme stocks. Unlike other equities, meme stocks aren't governed by the company's fundamentals or technicals. [Markets Insider]
  • How meme stocks work - Meme stocks are stocks that see dramatic price increases, mostly fuelled by people on social media (primarily Reddit, Twitter and Tik Tok). These stocks rarely have company fundamentals that back the rise in price, and are often highly volatile. [Morningstar]
  • Meme stock prices are not an accurate reflection of demand - The prices of so-called meme stocks may be distorted because the majority of trades in those names are executed away from public exchanges where share price formation occurs, according to the head of the New York Stock Exchange. [Reuters]
  • ‘Community’ is profitable - The retail investor and meme stock forums have forged a new path for the future of finance, as retail investors are becoming a force in the investing community that can mobilise capital quickly and dramatically influence stock price movements. [Yahoo Finance]

🔍 Further reading

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