Could Meme stocks be overvalued?
Meme stocks can also be understood as Internet celebrity stocks. They're driven by retail investors, achieve viral spread with the help of social media platforms. But without the boring stuff like financial analysis and due diligence, they're super volatile and all about the hype.
$GameStop(GME)$ was the first big meme stock in the US. It was a rallying cry for retail investors to take on Wall Street's big guns. The stock shot up 100 times in just a few months, which is also a subversive victory for retail investors to force short Wall Street bears.
Some people think meme stock communities work together to move prices, but it's more like a chaotic mosh pit of individual investors, each with their own opinions and biases.
As it turns out, the independent actions of these investors can collectively trigger a large number of short-selling stocks. As a result,, meme stocks may be overvalued relative to fundamental technical analysis.
After GameStop's success, WallStreetBets users started targeting other heavily shorted stocks like $AMC Entertainment(AMC)$ and $BlackBerry(BB)$ . Their prices skyrocketed too.
Other meme stocks include $Bed Bath & Beyond(BBBY)$ $Koss(KOSS)$ $Vinco Ventures, Inc.(BBIG)$ $SCIENCE SPRT(SIS.UK)$, and even $Robinhood(HOOD)$, the one that helps fuel the meme stock craze!
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