$Microsoft(MSFT)$ $Alphabet(GOOG)$ 

These are the tech stocks I would hold as AIgains traction. I will not hold Meme stock due to the lack of fundamentals.

The excitement to make a large amount of money in a short period of time can be enormously tempting – therefore, investors may sometimes resort to meme stocks, succumbing to that temptation.

Before you make like an ape and go bananas, here's what you should know.

Meme stocks have become quite popular in the last few years. During the COVID-19 pandemic, some traders started talking up stocks on social media sites such as Reddit. The excitement potentially urged many other people to buy and/or sell based on those talking up a particular meme investment.

If you are considering investing in a meme stock, it can be wise to:

Do your due diligence to ensure it is indeed a good pick that aligns with your investment goals

Have a strategy, whether you’re buying and quickly flipping the stock or hanging on

Although you may see the potential for a quick gain, you may not want to invest more than you can afford to lose, because you can lose a lot and fast

What is a meme stock?

A meme stock is essentially a stock that’s gone viral. Just as a funny photo or video can get passed around the internet for all to see, so can a meme stock. The word "meme" refers to ideas or images that spread exponentially on the internet. The big difference is that receiving a ridiculous picture from a friend is free, while buying a stock position based on a recommendation from an anonymous person online can be costly.

Meme stocks tend to be the subject of discussion on social media platforms such as Reddit or Twitter, which can lead to cult-like loyalty from retail investors and a massive jump in trading volume and price movements. The discussion is rarely focused on the fundamental attributes of the company. In some cases, as can be seen from the history of meme stocks, it can even be a punitive attempt to “squeeze” professional investors who have sold the stock short to cover their positions.

 There may be a few reasons why investors have jumped onto the meme stock craze. The first is that many hope to make a large amount of money in a short period of time.

The other reason why people buy in can simply be: It’s fun to join the crowd. Similar to jumping on a bandwagon when a sports team makes it to the finals ⁠— many people enjoy taking part in the excitement. In the case of meme stocks there may be no better bandwagon than joining the social media masses. Ultimately, there may be nothing wrong with having a little fun if you have the extra money to spend. Using retirement or money allocated for reasons other than investing to play the meme, however, could be more dangerous.

 The biggest risk with a meme stock is losing all of your money. Without solid fundamentals to back up the price increase ⁠— such as increasing revenues or profit growth ⁠— sustaining excitement for a company can be difficult after the initial wave of exuberance subsides. Stock prices of meme stocks tend to plummet as soon as sentiment turns.

Because price gains are driven by what the masses think and not by fundamentals or core value meme stocks have shown to be highly volatile. After their initial run-up in price, some return to the levels they traded at before they went viral. Others continue to fluctuate in a range between their peak and previous levels. Retail investors who bought meme stocks on their way up may have been left with shares that now trade below the price they were purchased at.

Before buying into a meme stock, it can be important to review the company’s fundamentals and make a case for investing. Just like you wouldn't buy a company simply because a colleague told you they have a hot stock tip, you may not want to follow the crowd into a business that could go bust. Look at annual and quarterly reports to see whether the company is growing. Are revenues rising? Is the company increasing earnings year after year? Does it have a product lineup that makes sense to you? Research other fundamentals to see how the meme stock may add value to your portfolio. Analyst reports often list price targets ⁠— take a look at those to see what pricing level the professionals recommend. If you want to jump in, it may be a good idea consider if the price is sustainable.

@TigerStars @MillionaireTiger 

DYODD  

# Hold Big Tech or Meme Stock?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment17

  • Top
  • Latest
  • pangspurs
    ·2023-02-08
    Ya g, let them compete
    Reply
    Report
    Fold Replies
  • YvetteGunther
    ·2023-02-09
    META is easy long-term money. Still, the question remains, will META go back down to fill the $153 earnings gap before going to $200, or will the gap remain unfilled?
    Reply
    Report
  • shining87
    ·2023-02-09
    I agree with this statement but if you're truly in it for the long term, meta will not be going anywhere. the metaverse is something that is never going away.
    Reply
    Report
  • XantheJuliana
    ·2023-02-09
    Meta spent way too much into this concept, too early on while there is so much to be done that lies ahead for what the metaverse will behold. this will be apart of the future...
    Reply
    Report
  • YeddaJohnson
    ·2023-02-09
    meta using most of its cash to buy back shares.. For meta to be able to keep operation running they will lean toward future dilusion.
    Reply
    Report
  • AthanasiusT
    ·2023-02-08
    nice
    Reply
    Report
  • Nglamx
    ·2023-02-08
    [Cool]
    Reply
    Report
    Fold Replies
  • Yyangg
    ·2023-02-08
    👍🏻
    Reply
    Report
    Fold Replies
  • Dvdkoh
    ·2023-02-08
    yes
    Reply
    Report
    Fold Replies
  • Shank88
    ·2023-02-08
    nice
    Reply
    Report
    Fold Replies
  • Cash88
    ·2023-02-08
    g
    Reply
    Report
    Fold Replies