Meme stocks are stocks that experience a surge in popularity among retail investors, largely fueled by social media and internet memes, particularly on platforms like Reddit's r/wallstreetbets. Often favored by younger, less experienced investors, these stocks frequently trade at prices exceeding their fundamental value, exhibiting high levels of speculation and volatility. The appeal stems from online trends rather than traditional investment analysis, leading to rapid and often unpredictable price swings.
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