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Any publicly traded company stock that keeps going up and disregards the fundamentals such as revenue and profits when valuing the underlying company. A meme commonly referenced by the stock market community is that “stonks always go up”. Hence, any stock that goes up in value beyond most people’s imagination is labeled as a meme stock. Commonly happens with stocks of very popular companies that show promising signs of growth for years to come. Due to hype around the company and its future outlook, the price of their stock keeps going up beyond a point that makes logical sense which may or may not result in a steep drop later on once/if the hype dies down.
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