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August 4, 2025

What makes a meme stock?

  • Online buzz is usually the key source powering a meme stock and not any change in the company's fundamentals.
    • By DAMIAN TROISE
    AP Business Writer

    iStock image
    Investing in meme stocks takes nerve. Gains can evaporate as quickly as they came.

    NEW YORK — Investors occasionally scoop up shares of companies whose financial prospects appear dim. The consensus around such companies is that the shares should, if anything, fall further. But they suddenly get touted in online forums and take off for no fundamental reason. Wall Street has dubbed them “meme stocks.”


     
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