This Is the Only Meme Stock I Would Invest In
Meme stocks came into the spotlight in early 2021, when retail investors gathered on message boards like Reddit's WallStreetBets and decided to buy shares of the beaten-down but heavily shorted GameStop in order to force a short squeeze.
After GameStop, meme stock traders went on to target other heavily shorted stocks flirting with bankruptcy, forcing squeezes and allowing these companies to raise cash through equity sales at much higher prices. That essentially allowed several meme stock companies to attempt a transformation, given that their legacy businesses were having serious problems.
However, this summer's meme stock resurgence doesn't seem to be fundamentally based. Many meme stocks still trade at high valuations relative to current numbers, while others didn't raise enough capital during 2021 to offset all their debt (I'm looking at you, AMC Entertainment).
Source Fool.com
