Has the Poster Child of Meme Stocks Lost Its Shine?

In my Buy or Bye? series, I take a popular stock, strip away all the hype and let you know whether you should buy now, buy later or buy never.

To quote columnist Thornton McEnery, “The thing about meme stocks is that sometimes they move like meme stocks.”

Today’s video sheds light on the poster child for the social media-fueled trading frenzy that is meme stock investing.

The past two years have been a wild ride for this company… to say the least.

Its stock reached a peak of $350 early last year before falling to $79 as recently as March 18.

But it soon did what all great meme stocks do…

After dropping 8%, it more than doubled to about $190 over the course of 10 trading days.

Check out this headline from Entrepreneur magazine…

However, look beyond the stock price and you’ll find nothing but a struggling entertainment company.

In an attempt to optimize its core business, it has invested in growing its customer care operations.

This “customer obsessed” strategy may have been a waste of resources, as the company still underperformed during the holiday season (a time in which it typically sees an increase in sales).

Barron’s reported this a few weeks back…

So, knowing that this company’s stock could rise – or collapse – at any moment… for any reason… the question remains: Is it worth investing in?

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