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Meme stocks are shares whose prices are heavily influenced by social media hype, online forums, and viral posts. Unlike traditional stocks driven by company fundamentals or economic indicators, meme stocks see their valuations rise or fall sharply based on collective online activity.
One of the most notable examples is GameStop (GME), which earned the title King of Meme Stocks. During the 2020-2021 frenzy, a Reddit community called WallStreetBets helped propel GameStop’s stock from around $5 to nearly $500 in a matter of weeks, causing tremors across the financial markets.