Meme stocks are back – but you shouldn’t chase them

GAMESTOP is back on the radar after Keith Gill, the man behind its infamous short squeeze saga in 2021, broke his three-year silence on his X account TheRoaringKitty on May 12, 2024.

His return caused GameStop’s stock price to skyrocket, closing 74.4 per cent higher on the second day. Gill’s reappearance on social media also had a broader impact, boosting the share prices of various meme stocks and crypto meme tokens.

Meme stocks phenomenon

Meme stocks refer to companies that gain hype through social media or Internet forums, causing their share prices to spike due to frenzied buying by retail investors. Many of these companies are heavily shorted by hedge funds because of their weak fundamentals.