GameStop stock surges over 70%—but investors should still be wary of ‘meme stocks'

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Roaring Kitty returns to social media, GameStop’s stock surges and short sellers lost over $1 billion. However, investors should be wary of chasing meme…

For most people, a return to social media wouldn't be remarkable. But Gill isn't most people. Between 2020 and 2021, he became one of the key internet personas who encouraged an army of day traders toAnd in 2024, it appears that meme stocks are rallying again. On Monday, GameStop's share price soared by around 70% throughout the day and trading was paused multiple times due to volatility.

To answer that question before investing in any stock — meme stock or not — investors should research a company's core business model, as well as factors like how it plans to increase revenue over the long term, Boneparth says. "At the end of the day, you've got to look at the business itself," he says."To give GameStop some credit, they really used their previous opportunity as a way to kind of turn the company around, take it from a struggling business to one that's doing a lot better."aim to mirror a market index like the S&P 500, these types of funds allow you to spread your investment across a wide swath of top-performing U.S. companies, creating automatic diversity.

Ultimately, stock market investors would be smart to think long-term and avoid attempting to use a company's short-term performance to predict how it may behave in the future. "If you have conviction over any company or any stock and you want to have it part of your portfolio, you're gonna need to have the discipline to hold on to that stock for a long time," Boneparth says.to learn about common passive income streams, tips to get started and real-life success stories. CNBC Make It readers can use special discount code CNBC40 to get 40% off through 8/15/24.

 

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GameStop Stock News: Roaring Kitty meme sends meme stocks soaringIt was the meme heard ‘round the world. On Sunday, May 12, Keith Gill posted a meme on X (formerly Twitter) of a man leaning forward in his seat, which is normally used by video game enthusiasts to mean a situation is getting serious.
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