Meme Stock Era

About Meme Stock Era

A phenomenon starting in January 2021 where retail investors coordinated on Reddit and social media to bid up heavily shorted stocks. GameStop, AMC Entertainment, Bed Bath and Beyond, and others soared hundreds or thousands of percent. The movement was driven partly by pandemic boredom, zero commission trading, and a populist desire to punish hedge funds. Meme stocks were extremely volatile. Some investors made fortunes; many lost everything. The era demonstrated the growing influence of social media on financial markets and the tension between institutional and retail investors. SEC reports examined market structure and trading practices during the frenzy.