What exactly are meme stocks?

Meme stocks are companies whose share prices are driven primarily by social media hype and online community interest rather than the company's financial performance. They typically gain popularity on platforms like Reddit (especially the WallStreetBets forum) and can experience dramatic price swings based on community sentiment rather than business fundamentals.

What does "Diamond Hands" mean?

"Diamond Hands" is online investor slang for holding onto stocks despite volatility, pressure to sell, or significant losses. The term implies having strong conviction and not selling during dips or market turbulence. It's the opposite of "Paper Hands," which refers to investors who sell quickly at the first sign of trouble.

Why do Reddit investors target stocks that hedge funds are shorting?

When hedge funds "short" a stock, they're betting its price will fall. Reddit investors sometimes target heavily-shorted stocks to create a "short squeeze" - when rising prices force short-sellers to buy shares to cover their positions, driving prices even higher. This strategy aims to both profit from the price increase and challenge what they see as Wall Street manipulation of struggling companies.

Are meme stocks good long-term investments?

Meme stocks are generally considered high-risk, speculative investments rather than reliable long-term holdings. While some may have genuine growth potential, many experience dramatic price swings based on social sentiment rather than business fundamentals. Most financial advisors recommend limiting meme stock investments to a small portion of a diversified portfolio using only money you can afford to lose.

10 handpicked stocks

Meme Stocks

Join the excitement of stocks that have captured social media's attention, particularly on Reddit. These carefully selected companies have generated massive online communities and viral movements, offering unique investment opportunities beyond traditional market logic.

Han Tan | Market Analyst

Updated 2 days ago | Published at मई 17