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However, the recent market pullback, driven by rising concerns surrounding the omicron COVID-19 variant has also caused meme stocks to take a hit. This is evident from VanEck Vectors Social Sentiment ETF’s (BUZZ) 1.8% decline over the past month. Meme stocks tend to be very risky investments and highly depend on investor sentiment rather than macroeconomic factors. As investors hedge their portfolios against a severe market pullback, meme stocks are expected to slump in the near term.
Popular meme stocks The Walt Disney Company (NYSE:DIS), GameStop Corp . (NYSE:GME), Peloton Interactive, Inc. (PTON), and ContextLogic Inc. (WISH) have been slumping over the past few months. Moreover, with infrequent mentions on wallstreetbets, these fundamentally weak stocks are best avoided now.
