Why Do Meme-Stock Rallies Keep Happening?
Get caught up.
Don’t people ever learn? Yet again, pajama traders are going crazy for meme stocks, either not knowing about or dismissive of the financial carnage similar frenzies over market has-beens or never-beens wrought both during and after the pandemic.
In mid-July, a crazed rally erupted around a cohort of beaten-down companies, including Opendoor Technologies, Kohl’s and Krispy Kreme, fueled by social-media buzz and a sudden surge of buying by retail investors. The stocks rose sharply—and, in some cases, quickly plummeted—not because of changes in their businesses, but because they became the focus of a few high-profile personalities on social media.