This Is One of the Biggest Risks of Investing in Meme Stocks
Meme stocks have been a big story of 2021. Including GameStop and AMC Entertainment Holdings, there have been plenty of unlikely investments that have generated fantastic returns for investors this year. Shares of those two companies have soared more than 1,100% each year to date (the S&P 500 is up just 23%).
Marijuana producer Sundial Growers (NASDAQ: SNDL) also became a hot meme stock in February, and its shares at one point were up over 450%. But it hasn't been as lucky as GameStop and AMC. Its popularity has waned, and it has given back most of those gains. Today, its shares are up 39% from the start of the year. It's an example of one of the risks of investing in meme stocks: fleeting popularity.
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Source Fool.com
