Market strategist explains the 3 hallmarks of meme stocks

to more than $65 a share in its first three days of trading, well above its IPO price of $34 a share. Shares of the social network platform have continued to experience volatility, however, falling to around $49 as of Thursday's close., Trump Media also saw a decrease in value later in the week, as the stock closed Thursday's session around $62 per share.

“They’re trying to find the next hot thing, and they’re just beginning to chase it and pile into it,” Jacobsen said. “That obviously can work well, but it can also then end in tears, especially if you don’t get into those names early enough.”The first indicator of a meme stock is a "quasi-religious fervor," according to Sosnick.

On the other hand, many meme stock investors have a much shorter time horizon in mind as they look to quickly flip speculative assets if the price spikes to turn a hefty profit. Essentially, according to Sosnick’s definition, meme stocks utilize an intense passion from retail investors who are willing to take on more risk and ignore some of the more conventional investing strategies for a chance at higher returns, especially in the short term.

As for why meme stocks are back in the picture, Sikes told Yahoo Finance that a combination of investors’ familiarity with a company’s products or brand and increased market volatility is likely to blame. With stocks off to their best start in five years, many strategists on Wall Street still make a case for the S&P 500 to keep chugging higher.

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stock market today: Wall Street drifts near its records amid a worldwide market lullNEW YORK (AP) — Stocks are drifting around their records on Wall Street, as a lull carries through financial markets worldwide. The S&P 500 was little changed in early trading Wednesday, a day after setting an all-time high.
Source: SooToday - 🏆 8. / 85 Read more »

Stock market today: Wall Street holds steady as market heads toward another winning monthNEW YORK (AP) — Stocks are holding relatively steady as Wall Street coasts into the close of its latest winning month and quarter. The S&P 500 was little changed early Thursday after setting an all-time high the day before.
Source: SooToday - 🏆 8. / 85 Read more »

Stock market today: Stock futures pop as Wall Street looks to continue record-setting runA bullish mood is prevailing on Wall Street.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Stock market today: Wall Street opens higher, edging back toward recordsNEW YORK (AP) — Stocks are opening higher on Wall Street. The S&P 500 rose 0.3% early Tuesday, coming off a listless performance where it edged a bit further from its all-time high set last week.
Source: SooToday - 🏆 8. / 85 Read more »

Stock market today: Asian shares trading mixed after Wall Street’s momentum coolsTOKYO (AP) — Asian shares were mixed in muted trading Tuesday, as buying in some markets was soon erased by profit-taking. Japan's benchmark Nikkei 225...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Stock market today: Wall Street edges lower after setting record highs last weekNEW YORK (AP) — Stocks are ticking lower on Wall Street at the start of what will be a short trading week. The S&P 500 was down 0.2% in early trading Monday. The Dow Jones Industrial Average was off 73 points, and the Nasdaq composite was down 0.
Source: SooToday - 🏆 8. / 85 Read more »