Of Memes and Marijuana Stocks
Those who are familiar with my writing know I typically like to examine a marijuana company’s financials, quality of leadership, and growth prospects—as well as the general political momentum behind cannabis legalization (both in the U.S. and globally).
But early 2021 has exposed us to an entirely new market force that every analyst, writer, and economist out there didn’t even know existed: the market power of the meme. And now a pot stock could become the next meme stock, which means we could see an explosion in value in the coming months.
First, here’s a little about what a meme stock is.
Internet memes are essentially highly shareable images, texts, or videos that are almost always comedic in nature. A meme is defined by its ability to go viral—in other words, by how many people know of it and continue to pass it on.
GameStop Stock: a Recap
If you’ve been paying even the slightest bit of attention to the stock market, you’ve no doubt been aware of the GameStop Corp. (NYSE:GME) fiasco.
For a recap, a group of Redditors (people who spend a lot of time on the social media platform “Reddit”) were persuaded to purchase immense sums of GME stock after they found out that several hedge funds held large short positions in the company. (Source: “Suck It, Wall Street,” TK News by Matt Taibbi, January 28, 2021.)
The Redditors believed the shorting was an artificial deflation of the company’s value, so they began…
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Of Memes and Marijuana Stocks
Those who are familiar with my writing know I typically like to examine a marijuana company’s financials, quality of leadership, and growth prospects—as well as the general political momentum behind cannabis legalization (both in the U.S. and globally).
But early 2021 has exposed us to an entirely new market force that every analyst, writer, and economist out there didn’t even know existed: the market power of the meme. And now a pot stock could become the next meme stock, which means we could see an explosion in value in the coming months.
First, here’s a little about what a meme stock is.
Internet memes are essentially highly shareable images, texts, or videos that are almost always comedic in nature. A meme is defined by its ability to go viral—in other words, by how many people know of it and continue to pass it on.
GameStop Stock: a Recap
If you’ve been paying even the slightest bit of attention to the stock market, you’ve no doubt been aware of the GameStop Corp. (NYSE:GME) fiasco.
For a recap, a group of Redditors (people who spend a lot of time on the social media platform “Reddit”) were persuaded to purchase immense sums of GME stock after they found out that several hedge funds held large short positions in the company. (Source: “Suck It, Wall Street,” TK News by Matt Taibbi, January 28, 2021.)
The Redditors believed the shorting was an artificial deflation of the company’s value, so they began…
