Trump Media, Reddit surge despite questionable profit prospects, taking on the ‘meme stock’ mantle

NEW YORK (AP) — Reddit and Trump Media are the first notable social media companies to begin trading publicly in the last five years. They’re also, thanks to the rabid reception among investors coupled with the companies’ fuzzy profit outlooks, the latest meme stocks. Meme stocks are typically shares in companies whose underlying business fails to justify a surge in their stock prices. Analysts and academics are comparing the surge in Reddit and Trump Media to the meme stock craze in 2021 that boosted shares of companies such as video game retailer GameStop and movie theater operator AMC Entertainment.