Stock market memefication – Stock memefication and investment risk avoidance from the aspect of Gamestop
Soini, Antti (2022)
2022
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2022120827402
https://urn.fi/URN:NBN:fi:amk-2022120827402
Tiivistelmä
The stock market is affected by many different factors and some factors have a greater influ-ence on the fluctuation of stock prices than others. The stock market memefication that took place at the beginning of 2021 had a major impact on the price of the target company's shares and on the stock market in general. Those private and institutional investors who fol-lowed exact social media platforms and made decisions about their stocks at the right time made huge capital gain. Instead of that, some investors had to settle for huge losses.
The occurrences following the memefication of stocks are unpredictable, but there are some ways how investors can prepare for possible changes in the prices of the stocks they own. However, it is crucial to know the factors and general concepts regarding investment, stocks, the stock market and the memefication of stocks. The aim of this research is to clarify the aforementioned general factors, explain the phenomenon of stock market memefication and to give investors advices how to avoid high risks when investing in meme stocks.
This research is demarcated to examine the stock market memefication in the period 1 Janu-ary to 30 April 2021 from the Gamestop corporation’s point of view. This time period is com-pared to the same period a year earlier. Additionally the company's other financial information and business model will be considered in order to have a wider picture with the risks associ-ated with investing and give more reliable advice regarding investing in meme stocks.
In the end of this research, some investment advices based on the contenct of this research is presented. Anyway, the research does not take a position on which investment assets should be invested in. Based on the adduced information and stock analysis, private inves-tors can assess the profitability of the investment themselves.
The occurrences following the memefication of stocks are unpredictable, but there are some ways how investors can prepare for possible changes in the prices of the stocks they own. However, it is crucial to know the factors and general concepts regarding investment, stocks, the stock market and the memefication of stocks. The aim of this research is to clarify the aforementioned general factors, explain the phenomenon of stock market memefication and to give investors advices how to avoid high risks when investing in meme stocks.
This research is demarcated to examine the stock market memefication in the period 1 Janu-ary to 30 April 2021 from the Gamestop corporation’s point of view. This time period is com-pared to the same period a year earlier. Additionally the company's other financial information and business model will be considered in order to have a wider picture with the risks associ-ated with investing and give more reliable advice regarding investing in meme stocks.
In the end of this research, some investment advices based on the contenct of this research is presented. Anyway, the research does not take a position on which investment assets should be invested in. Based on the adduced information and stock analysis, private inves-tors can assess the profitability of the investment themselves.