To The Moon

Big Tech vs Meme

When u compare so called big tech vs meme stocks, it depends on your definition of a meme stock really. For me, I classify meme stocks as speculative stocks with not much of a fundamental story where their values have been inflated by participants bent on taking on the so called juggernauts of wall streets. So they come together much like vigilantes to strike at the heart of wall street with particular reference to the hedge funds. Hedge funds are famous for shorting stocks which they deem highly valued or not fundamentally sound. But they run the risk of being short squeezed especially when the price goes up in huge amounts. That is where the prices of these stocks go up even though it does not make sense from the financial aspect. As for stocks with a fundamental story, they may be a hit with the meme crowd but I do not consider them so even though their valued might get overinflated.

I will not look at whether a stock is big tech or a meme. I will look at the fundamentals of the stock and the growth story and if they are participating in a particular trend. In this environment, growth must not be at all costs and both top lines as well as bottom lines are equally important with clear uptrends. Earning beats are secondary if margins are contracting. So a good company will be one that is able to growin this environment and yet be prudent with costs. 

Thanks for reading!