Business

Commentary: Meme stocks are still with us, offering new temptations for novice and unwary investors

Published

5 months ago

October 31, 2025

Commentary: Meme stocks are still with us, offering new temptations for novice and unwary investors

If you blinked you may have missed this, but the stock of Beyond Meat, the purveyor of meatless burger patties, had a spectacular run a few days ago.

The stock had surged by more than 1,400% in the four days through Oct. 22, when shares hit an intraday peak of $7.69, up from a low of 50 cents on Oct. 16.

Given that this El Segundo-based company has never had a profitable year since its 2019 initial public stock offering, the run-up was apparently triggered by the online touting of the stock by a trader named Demitri Semenikhin, and the shares have since settled back to $1.65 (in intraday trading Thursday), the action has market observers asking if “meme stocks” are back.

The answer is no — because they’ve never gone away.

I’ve been seeing signs of a ‘flight to crap’ recently.

— Market strategist Steve Sosnick

The appetite of small retail investors for what beckon as big scores in unloved stocks has remained strong since the meme stock trade attracted attention during the pandemic year 2021.

The “meme” sobriquet points to the most notable factor driving the swift run-up and rapid downfall of these stocks: They feed on momentum generated by internet touts, not sober assessments of business prospects and financial results. Indeed, the quintessential meme stock has little in the way of profits to catch the eye of serious investors.

Beyond Meat is just the latest company to enjoy sudden meme-dom, followed by an equally sudden dose of reality. In Beyond’s case, the surge came in the wake of its Oct. 13 announcement of the results of a debt swap deal that will massively dilute the stake of shareholders. Short sellers piled into the stock, setting up the momentary rebound typical of meme stocks.

Over the last few months, meme stock traders have piled into, and then out of, shares in Krispy Kreme, GoPro, Kohl’s and other companies that are disdained as underperformers by the Wall Street establishment, only to be taken up by an internet-fueled army of small investors. But those investors seldom have the resources to survive the almost inevitable snapback.

For those who may not recall the meme stock frenzy of 2020-21, here’s a trip down memory lane.

The emblematic meme stock of 2021 was GameStop, a spavined mall-based video game retailer that was struggling through the transformation of its franchise from brick-and-mortar stores to online commerce. The company had lost a combined $1.36 billion from 2018 through 2020, and its future looked bleak.

Then, as if out of nowhere, the stock got noticed by online investment promoters, who urged followers to buy GameStop shares to hurt Wall Street short sellers, who were betting that the stock would keep falling.

The shares climbed relentlessly through January 2021, soaring from a low of $12.16 in mid-December to an intraday high of about $483 on Jan. 28. It closed that day at $193.60, delivering a prompt lesson that investing in stocks based on claims touted online is a mug’s game.

All this action was the product of several confluent factors. One was the pandemic and its attendant lockdowns, which prompted people deprived of social contacts and customary entertainment pursuits to fill their empty hours day-trading stocks. Internet influencers goaded their followers into trading in concert with the goal of putting it to the Man — i.e., rich Wall Street hedge fund managers who were shorting unloved stocks and deserved to be taken down a peg.

GameStop stock wasn’t the first issue to get memed. In 2020, investors piled into Hertz, even though it had been forced to seek bankruptcy protection after the COVID-19 outbreak cratered the rental car market,. Bloomberg even declared 2020 “the year of the meme stock.” (Hertz abandoned a plan to sell new shares into the frenzy after regulators raised questions about it.)

But it was GameStop that made meme stock trading into, well, a meme. GameStop displayed all the elements that drove the meme frenzy, the Securities and Exchange Commission ultimately reported: “(1) large price moves, (2) large volume changes, (3) large short interest, (4) frequent Reddit mentions, and (4) significant coverage in the mainstream media.”

A key element of the meme market was an influx of young individual investors enthralled by get-rich-quick trading come-ons. Robinhood, an online brokerage that cut commissions to zero and enticed new customers with an app that made stock trading resemble playing a video game, disclosed that “its average customer is 31 years old and has a median account balance of $240,” the SEC reported.

One might have expected that as these factors ebbed, the meme stock frenzy would evaporate. It did, somewhat, but not nearly as much as Wall Street pros expected. Indeed, as GameStop rose, the buyers gleefully declared victory over the shorts, fueling the search for more meme-able stocks. Some investors made the theater operator AMC Entertainment a meme stock. Some joined new crazes, such as cryptocurrencies, nonfungible tokens and other assets more or less immune from the traditional investment fundamentals such as revenues and profits and business plans.

Nothing was especially new about individual stocks having a moment in the sun before falling back into obscurity, but the frenzy of early 2021 turned meme stocks into an assiduously followed investment category all its own. Financial pages and tout sheets ran wrap-ups of meme action every year. GameStop and AMC were perennial members of this club, supplemented by newcomers.

In 2022, the star was the bankruptcy-bound retailer Bed Bath & Beyond, which staged a nine-day rally that summer culminated in a one-day 40% surge Aug. 8 on extraordinary volume of 120.5 million shares. (Its Chapter 11 bankruptcy filing finally arrived in April 2023.)

To define the category, market analysts generally rely on the factors mentioned by the SEC in its reference to GameStop. But not all meme stocks were similarly obscure before having their day. One that has recently landed on meme stock rosters is Tesla: “Wildly overvalued compared to rival automakers, its shareholders are betting that they can sell their holdings to a greater fool in the near future,” economist J. Bradford Delong of UC Berkeley wrote in May 2024.

Earlier this year, Yale professor Jeff Sonnenfeld polled the attendees of his most recent CEO conference on the question: “Compared to NVIDIA’s 40x P/E forward multiple and Apple’s 30x multiple, has Tesla at 160x become the biggest meme stock in modern financial market history?”

Of the 100 participants, 83 voted “yes.”

Meme investors have acquired new tools to follow and invest in meme targets. Bloomberg and UBS have developed meme stock indexes, and in October a meme stock exchange-traded fund — a mutual fund that trades like a stock — was launched by the investment house Roundhill.

One can hardly fault Roundhill’s warning of the risks of meme investing: “Meme Stocks are characterized by high trading volumes and significant price volatility, often driven by social media trends and investor interest,” it advises potential investors. “Meme Stocks often trade untethered from … fundamentals, driven instead by speculative fervor and viral momentum.”

“Volatility” is the mot juste for this ETF: Despite notching a 17% gain over four days shortly after its introduction, MEME is currently down more than 23% from its Oct. 14 peak.

Meme-stock buying is often triggered or sustained by a nugget of bull-market sentiment. The Beyond Meat narrative included its Oct. 21 announcement of a deal with Walmart that will place its products in more than 2,000 stores. But whether that’s enough to overcome the company’s evident financial headwinds remains questionable.

For Opendoor Technologies, a money-losing residential real estate broker that quintupled in price during a few weeks this summer and nearly doubled in price on a single trading day in September, the story was that lower interest rates would spur more housing transactions.

Opendoor Chairman Keith Rabois bristled at a CNBC anchor’s description of the company as a meme stock during an interview in September, arguing that investors have begun to appreciate its “potential upside.” Beyond Meat didn’t respond to my request for comment on its share price. (Opendoor was the Roundhill ETF’s largest holding when the ETF was launched; more recently, the largest holding has been Beyond Meat.)

The economic fundamentals underlying the overall stock market don’t seem to have much to do with meme stock rallies. The original craze developed when interest rates were close to zero, making stocks look attractive compared with fixed income investments; the current craze has unfolded during a period of high interest rates and economic uncertainty — though that hasn’t stopped the major stock indexes from notching record highs lately.

Small investors would be well advised to keep in mind that the meme market could be the very definition of a risky place to trade. Meme investors tend to crowd into a stock after it has already begun its rapid march upward — and sometimes when that trend is about to reverse.

GameStop hasn’t fallen back to its pre-frenzy price in the low double digits, but with its current price below $23, investors who bought at its January 2021 peak have lost about 80% of their money. (The company staged a 4-to-1 stock split in July 2022, so one must multiply its current price by four to replicate its 2021 prices.)

The smart money says that the meme trade is with us to stay. There’s just too much uninformed, misinformed and self-interested commentary washing about in the investment sphere, too easily accessed by unwary and novice investors. Most of the advice being pushed on investors today isn’t much good, and what can be gleaned from promoters on Reddit even worse. The term “buyer beware” has never been so important.

Business

Apple at 50: How a garage startup became a $3.5-trillion titan

Published

9 hours ago

March 31, 2026

Press Room

Apple at 50: How a garage startup became a .5-trillion titan

Fifty years ago, Steve Wozniak knew he built a great personal computer, but the young engineer couldn’t convince his employer, Hewlett-Packard, to buy into the big idea.

“Five times they turned me down for the personal computer. I wanted Hewlett-Packard to do it. I loved my company, but now Steve Jobs and I had to go into business,” Wozniak told The Times.

Wozniak and Jobs, both in their 20s, co-founded Apple with Ron Wayne on April 1, 1976.

Back then, personal computers were very expensive and rare. Apple would go on to revolutionize the tech industry, creating innovative, intuitive and beautiful gadgets billions of people would buy again and again.

Apple Inc.’s then-CEO Steve Jobs speaks in front of an early image of himself and Steve Wozniak during an Apple event on Jan. 27, 2010, in San Francisco.

(Justin Sullivan / Getty Images)

Apple, now one of the world’s most valuable and powerful companies, turns 50 this week.

From its humble beginnings when the founders worked out of Jobs’ family garage, Apple has ballooned over the last five decades, opening a sprawling ring-shaped headquarters in Cupertino, Calif., and employing roughly 166,000 workers.

Its market value has surpassed $3.5 trillion, making it the second-largest company in the world after Nvidia. In the fiscal year ending in September, Apple reported revenue of $416 billion and a net income of $112 billion. The company has attracted a large loyal fan base with more than 2.5 billion active Apple devices worldwide.

“Apple is more than just a technology company. It’s really a cultural icon,” said Jacob Bourne, a technology analyst at eMarketer.

By creating well-designed products that blur the lines between work and enjoyment, Apple helped foster an emotional connection to the brand, he said. The company’s strong stance on privacy and security has cultivated trust among legions of its fans who line up at Apple’s retail stores to buy its latest products.

“Every company claims to strive for excellence. It’s just a trope. But, man, you go inside Apple and talk to these people, and it’s almost a mania. It’s intense to work at Apple. A lot is expected of you,” said David Pogue, a journalist and author of “Apple: The First 50 Years.”

This attention to detail is apparent in Apple’s products.

When Apple built a way for people to unlock their devices with their faces, the company tested the technology at Harley-Davidson motorcycle rallies and even hired Hollywood special effects artists to ensure life-like masks couldn’t spoof its facial recognition system, Pogue said.

Pogue’s book, released ahead of Apple’s anniversary, goes through Apple’s long history, chronicling the company’s key players — including Jobs’ leadership style and temper — and the challenges it faced as it rose to the top.

“Apple’s story is an epic tale of frenetic all-nighters and creative rebellion,” he wrote in his book. “Of titanic successes (iPods, iPhones, iPads) and instructive failures (Lisa, Apple III, MobileMe). Of funny, idealistic, scary-smart workaholics — coming up on three generations of them — who want to make things better by making things better. It’s about management, marketing, and strategy — and also about creativity, drive, and obsession.”

Apple went through periods of financial trouble and uncertainty.

In the 1990s, the company laid off a third of its workforce and was days away from bankruptcy before the return of Jobs, who left the company in 1985 after clashing with the board and then-Chief Executive John Sculley.

In 2011, Jobs died of pancreatic cancer at 56, fueling more uncertainty around the company’s future. Apple has faced scrutiny over working conditions at Chinese factories where Apple devices and other electronics are produced.

The company had massive breakout moments of success, including the release of the iPhone in 2007, outpacing rivals such as BlackBerry and sparking the shift to smartphones.

“Apple kept up with it all. Apple was always flexible,” Wozniak said. “Now we’ve got so many different avenues, from the surfaces to other machines and AirPods and all that.”

The secret to the company’s success was it managed its brand well and didn’t make “lousy junk” that breaks down, he said.

The tech giant — which is building a new office complex in Culver City — also expanded its footprint into Hollywood in 2019 with the launch of Apple TV+, the streaming service known for such TV shows as “Severance,” “The Morning Show” and the comedy “Ted Lasso.” In 2022, it became the first streamer to win an Academy Award for best picture for family drama “CODA.”

Apple, known for looking forward, took time to reflect and celebrate its half-century.

Earlier in March, Apple held a surprise concert featuring artist and producer Alicia Keys, who performed at its Grand Central Store in New York.

The company has held celebrations in different parts of the world, showcasing artists in China, Korea, Thailand, the United Kingdom and Mexico as well.

Apple worked with artists to light up the Sydney Opera House in Australia with art designed on the iPad.

Apple Chief Executive Tim Cook with Alicia Keys at a 50th anniversary celebration at Apple Grand Central in New York on March 13.

(Theo Wargo / Getty Images for Apple)

“Through every breakthrough, one idea has guided us — that the world is moved forward by people who think different,” wrote Tim Cook, Apple’s chief executive, in a public letter about the milestone.

It’s not just Apple that’s been celebrating.

In January, RR Auction held an auction to celebrate the anniversary that included rare items such as Jobs’ bedroom desk and bow ties. A 1976 check signed by Jobs and Wozniak before the founding of Apple and an Apple I computer prototype board each sold for more than $2 million, according to the auction’s website.

The Computer History Museum in Mountain View, Calif., has been hosting events and opened a new exhibit to celebrate Apple’s anniversary.

Inside the museum, rare prototypes of Apple products, including its personal computers and smartphones, were on display to showcase the Silicon Valley powerhouse’s long journey. A wooden Apple I case, a clear acrylic Macintosh, a large iPod prototype and other items from Apple’s past fill the room.

Earlier this month, Pogue hosted a sold-out evening event that featured key people in Apple’s history, including its former chief executive Sculley.

Wayne, the Apple co-founder who left the company days after its founding, also made a rare appearance. He departed from Apple early, he said, because he thought it was too financially risky.

“If the whole thing came unglued, Jobs and Woz didn’t have two nickels to rub together, so who are they going to come after? Obviously. And I didn’t feel that I could stand the risk of such a disaster,” he said.

Sculley, who became Apple’s chief executive in 1983 and held the position for a decade, was initially reluctant to leave PepsiCo, but Jobs eventually persuaded him.

“He said, ‘Do you want to sell sugar water for the rest of your life, or do you want to come with me and change the world?’” Sculley said on stage.

Today, the world is very different, and technology has evolved.

The rise of artificial intelligence that can generate text and images has prompted anxiety about the future. And it’s spurring the creation of hardware such as smartglasses and robots.

But AI can also create problems such as “deepfakes” that make it seem like a person is saying something or doing something they’re not, Wozniak noted.

People spend a lot of time scrolling through videos on social media, addicted to their phones instead of interacting with their friends and family.

“The world is run by people who want to sell things,” Wozniak said. “They’re not going to let us get away from that.”

Apple is also contending with the AI race and is seen to be trailing. Its shares rose more than 55% over the last three years but the broader Nasdaq Composite index rose more than 75% and it ceded its throne as the world’s largest company by market value to Nvidia.

Meanwhile, there are questions swirling around when Cook, 65, will retire.

For now, Apple appears positioned well, analysts said.

“I see Apple being able to weather the current pressures at least for the foreseeable future,” said Bourne, the eMarketer analyst.

Business

Californian chocolate recalled for being spiked with Viagra ingredients

Published

21 hours ago

March 31, 2026

Press Room

Californian chocolate recalled for being spiked with Viagra ingredients

Chocolate products from a Californian company have been recalled after they were found to have been spiked with the potentially dangerous ingredients used in Viagra and Cialis.

The San Francisco Bay Area’s Gear Isle recalled the products after they were found to contain undeclared prescription drug ingredients used to treat erectile dysfunction, the U.S. Food and Drug Administration announced last week.

The products, sold online across the U.S., were found to have sildenafil and tadalafil. The ingredients could cause a “life-threatening” drop in blood pressure when mixed with nitrates found in prescription drugs, according to the FDA.

The two recalled products are Gold Lion Aphrodisiac Chocolate Male Enhancement Sachet and Ilum Sex Chocolate Male Sexual Enhancement Booster. The FDA initially issued a warning in February advising consumers not to purchase the second item after confirming the product contained tadalafil.

Men who use nitrates to treat cardiac conditions are most at risk when using the products, according to the announcement, which urged customers who purchased the products to stop using them immediately.

The Ilum sexual enhancement chocolate comes in black packaging with yellow and white font that reads “male sex chocolate.” The Gold Lion product is sold in purple packaging.

Gear Isle specializes in “adult novelties,” the company’s website states. The company doesn’t make any of the products it sells, according to its website.

Gear Isle has not received reports of adverse reactions from these products, according to the FDA announcement. The company has reached out directly to customers to coordinate returns and refunds.

The FDA warned consumers that products marketed as dietary supplements, which are typically promoted for sexual enhancement, weight loss and pain relief, can contain hidden drug ingredients.

“Consumers should exercise caution before purchasing these products,” the February announcement read. “FDA is unable to test and identify all products marketed as dietary supplements that have potentially harmful hidden ingredients.”

Business

Mattel goes through another round of layoffs

Published

1 day ago

March 30, 2026

Press Room

Mattel goes through another round of layoffs

Mattel announced another round of layoffs targeting dozens of employees, the latest in a flurry of cost-cutting moves made by the company in recent years.

According to a notice sent to state and local officials, the company behind Barbie and Hot Wheels will lay off 65 employees from its El Segundo headquarters, effective on May 22 — about a year after it laid off 120 workers.

The company is reducing and restructuring roles across the company to optimize operations and realign the company toward a new brand-centric operating model, a Mattel spokesperson told The Times.

“These changes are designed to advance the company’s growth objectives and strengthen our competitive position,” the Mattel spokesperson said.

Employers are legally required to submit a WARN notice to alert employers, state and local officials at least 60 days before major layoffs. The initial notice was submitted on March 23.

The company let go of 89 workers in January, part of restructuring the company’s global brands team, a Mattel spokesperson told the Los Angeles Business Journal.

The shrinkage follows lackluster economic performance in 2025, which plummeted the company’s shares by 25% in February. The company lost close to $1 billion in market value.

The stock market dip came after the company announced weak holiday season sales, with Barbie products lagging. The doll, a Mattel staple, rose to the spotlight following the 2023 hit movie “Barbie,” but has since lost momentum.

Mattell made $5.3 billion in net sales in 2025, down 1% from the year before, according to the company’s unaudited financial statements.

Leaders said the company has shifted its focus toward IP-based digital games — a more profitable landscape than toys, which were once integral to Mattel’s success.

The company recently announced it spent around $160 million to acquire full ownership of its mobile game studio Mattel 163, initially a joint venture with the Chinese internet and video game company NetEase. The studio has released four games based on Mattel’s intellectual property since it was established in 2018.

The company announced earlier that digital versions of its popular game Uno had launched on Roblox and Fortnite.

Mattel has also set its sights on major movies, recently partnering with Netflix to make toys inspired by the breakout success of “KPop Demon Hunters,” which the company expects will boost doll sales.

It also has deals to develop toys for the “Masters of the Universe” franchise, which has a movie releasing in June, and the Teenage Mutant Ninja Turtles franchise that has a new movie slated for next year.

“Success in our toy business will drive success in entertainment, and success in entertainment will drive greater success in toys,” Chief Executive Ynon Kreiz said in February. “We are looking to fully capitalize on this virtuous cycle.”