Meme Stocks Phenomenon: Bed, Bath and Beyond & other stocks that more than doubled money in quick-time

When a little-known company’s stock witnesses an unimaginable price for no apparent reason and has a large investor’s interest, it’s a perfect case of a meme stock.

Meme Stocks Phenomenon: Bed, Bath and Beyond & other stocks that more than doubled money in quick-time
A few recent additions to the meme stock list could be the stocks of AMTD Digital (HKD) and Bed, Bath and Beyond (BBBY). (Image: Pixabay)

Meme stocks phenomenon keeps visiting the stock market doubling share prices in a few days’ time. GameStop (GME), AMC Entertainment Holdings ( AMC) stocks that saw share prices spiraling to sky-high levels were often referred to as meme stocks. When a little-known company’s stock witnesses an unimaginable price for no apparent reason and has a large investor’s interest, it’s a perfect case of a meme stock.

But, with the speed with which the price of these stocks goes up, the fall in share price in them is equally stronger. A complete loss of capital is very much possible by investing in them! “The meme stock page on my IBKR TWS is all red, and some of the losses are in double-digit percentages. We noted during a previous meme stock bloom that the half-life of these flourishes seems to be shrinking. If you participate in these period rallies and trade them profitably, congratulations. If you notice the eruptions only after they are in full flourish, please be careful,” says Interactive Brokers’ Chief Strategist Steve Sosnick.

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A few recent additions to the meme stock list could be the stocks of AMTD Digital (HKD) and Bed, Bath and Beyond (BBBY). AMTD Digital (HKD) listed on NYSE saw its price skyrocketing by over 14000% when it closed at $1679 on August 2 from its IPO price of HKD was $7.8. “The HKD supernova acted as a clarion call to the speculators who love meme stock excitement. It got the band back together, so to speak. As a result, we’ve seen double-digit gains in GameStop (GME), a near doubling in Bed, Bath and Beyond (BBBY), and a sizeable bounce in AMC. Only AMC, which finalized plans for a spinoff, had anything resembling fundamental news that might justify a sizeable rally,” adds Sosnick.

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Robinhood (HOOD) has been told by a U.S. judge that it must face market manipulation claims following the trading restrictions it placed during the 2021 “meme stock” rally, according to agencies on Thursday. Last year the company faced scrutiny from its retail investor client base after it restricted trading in so-called meme stocks such as GameStop (NYSE:GME), AMC Entertainment (NYSE:AMC), and other Reddit favorites following surges in their share prices.

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