Meme stocks gained immense popularity last year, with retail investors getting together on social media forums like Reddit’s WallStreetBets (WSB) to squeeze hedge funds by betting against them on fundamentally weak stocks.
The short squeeze helped many retail investors gain significantly. However, since the beginning of this year, interest in meme stocks has cooled off. Many meme stocks returned to earth amid concerns over multi-decade high inflation, the Federal Reserve’s aggressive interest rate hikes, and an economic slowdown.
