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Froth and FOMO are being used to create meme stocks, and fake meme stocks

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Are there fake meme stocks? “No conversation at all, then a flood of mentions,” said Travis Rehl, the founder of HypeEquity, a platform that tracks social media sentiment on individual stocks. “The stock goes up and the comments stop almost immediately.”

Not all meme stocks are created equal, in fact some meme stocks might just be the result of a dark experiment with the market power of retail investor FOMO.

In fact, the only thing they had in common was a sudden surge in mentions on social media, a statistic that has been increasingly compiled by analysts like Rehl who are selling it as investment data on new platforms and which are now being quoted in analysis of meme stocks by major Wall Street firms which, in turn, are clearly now aware of how social media fuels the market for meme stocks.

These cases have caught the eye of other data platforms that track Reddit mentions of individual stocks. “It’s the #1 most popular page on our site,” Zambonini wrote in a direct message. “So there’s a huge audience out there that’s primed and ready to be taken advantage of.”“It’s market manipulation, pretty clearly” said Francis Curran, a securities litigation attorney at Kudman Trachten Aloe & Posner. “Even if it’s not a classic pump and dump, these are real people buying these stocks, and they’re left holding the bag when the price falls out.

 

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