What are meme stocks and why are they back?

Like it or not, GameStop and AMC are back on Wall Street

A pair of traders on the NYSE overlooking GameStop
Meme stocks such as GameStop have kept traders busy at the New York Stock Exchange
(Image credit: Reuters/Brendan McDermid)

Like the rise and fall of a stock ticker, one notable Wall Street trend from a few years ago has made its way back into the zeitgeist: meme stocks. They first came onto the scene in 2021 with stocks like GameStop, which created such a fervor that Sony Pictures made an entire film about the company's rise to the top called "Dumb Money." 

So it is perhaps unsurprising that GameStop was among the first meme stocks to see a resurgence earlier this May, along with other prior meme stocks such as AMC Theaters. But just as quickly as they rose, the meme stocks fell. "Investor appetite for 'meme stocks' may already be waning," CBS News said, just days after they returned to the scene.  

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Justin Klawans, The Week US

 Justin Klawans has worked as a staff writer at The Week since 2022. He began his career covering local news before joining Newsweek as a breaking news reporter, where he wrote about politics, national and global affairs, business, crime, sports, film, television and other Hollywood news. Justin has also freelanced for outlets including Collider and United Press International.