Meme companies stay with us for longer

The January phenomenon of meme companies continues. Two baskets eToro including meme companies are below record levels, but still above January figures. Gamestop is ten times higher. Group on Reddit - Wall Street Bets has gained 1,5 million new subscribers since March. More new meme ETFs have been created, among others EVEN. In a broader perspective, US household equity investments are at a record leveland US equity funds recorded $ 900 billion in inflows in the first half of the year, the most in 30 years.

About the author

Ben Laidler - global markets strategist in eToro. Capital investment manager with 25 years of experience in the financial industry, incl. at JP Morgan, UBS and Rothschild, including over 10 years as the # 1 investment strategist in the Institutional Investor Survey. Ben was the CEO of the independent research firm Tower Hudson in London and previously Global Equity Strategist, Global Head of Sector Research and Head of Americas Research at HSBC in New York. He is a graduate of LSE and Cambridge University, and a member of the Institute of Investment Management & Research (AIIMR).

We are waiting for the GameStop results

Original meme company, Gamestop (GME), will report the results after today's session ends. After raising $ 1,7 billion from shareholders, paying off long-term debt, and with a new management team, the company will now focus on business transformation plans. The projected increase in revenues compared to last year's quarter is 20%, and losses are expected to be halved.

Meme companies are popular all the time

EToro Global Survey - Individual Investor Pulse - showed that 17 percent. Investors polled own shares of meme companies less than predicted, but still a high percentage. There are large differences between countries (from 30% in Romania to 10% in Australia), and there are also different reasons for the investment - profit (35%), belief in the foundations (27%) and entertainment (26%).

Diversification is the key

We have updated BANG, our index of "original" meme companies, namely: Blackberry (BB), AMC Entertainment (AMC), Nokia (NOK), Gamestop (GME). The broader MEME index, which includes the top 15 social media companies, confirms that diversification pays off in the long run, contributing to lower volatility and higher returns on investment. However, none of these groups can boast of profits.