Posted 3/27/2024, 6:32:00 PM
The Rise of Meme Stocks: How Social Media Hype and 'Belief' Overrides Traditional Stock Fundamentals
- Displays "quasi-religious fervor" and an "us versus them" mentality among its most devoted investors
- Fundamentals like valuations and profits are disregarded by its biggest champions
- Sky-high valuations not rooted in financial fundamentals or growth prospects
- Attracts high short interest from investors betting against overvalued shares
- Powerful momentum and enthusiasm can persist, fueling further meme stock gains