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What is a meme stock?

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Meme stocks have been the talk since the start of this year, but there seems to be no formal definition of what it is

But there are characteristics that make a meme stock easier to spot

Isabelle Lee chats with Adrian Franklin on meme stocks. She is a reporter at Insider covering everything in markets from earnings reports to cryptocurrencies

Meme stocks are usually stocks that rally out of the blue.

“These are stocks that have unusually high trading volume, stocks that have wild price swings, and of course, stocks that social media loves,” Lee said.

“So this definition isn’t set in stone, it could obviously change, it could expand. But we’ll see for now, this is the definition that I see most captures current stocks that we are seeing.”

What characteristics do meme stocks have?

AMC, GameStock, Nokia and Virgin Galactic cane spring to mind when you think of meme stocks

“I spoke with one of my sources this week, Matthew Tuttle. So he’s the CIO and CEO of total capital management. And I said, What constitutes a meme stock? What if it doesn’t have a fan base? Is it still a meme stock? And I think no one can really answer it,” Lee said.

Lee says she thinks it’s just consensus agreement, as there really is no formal definition, which makes it tricky.

“But also, I guess, makes just the stock market. So exciting.”

What meme stocks should you be watching?

There are several but today, let’s talk about two.

So first is software company and second is digital marketing firm, vinco ventures.

“So both these shares rallied so much this week. Support.com, I think in the past month is up around 220 percent. Vinco ventures is also up around 180%,” Lee said.

Both these two companies exhibit the four meme traits, but they also have a high short interest.

Could there be a GameStop 2.0?

“GameStop is GameStop is the main stock King,” Lee said.

However she notes that the stock market, especially the retail traders, are always after something different.

Then we have runner ups like AMC entertainment, we have hertz, Saba health, Blackberry, but the now support.com and vinco. I don’t think these two are necessarily the most popular companies.”

It remains to be seen if there will be another GameStop that really caught the attention of most of the world

“The amount of stocks shorted in those two companies are relatively small compared to the average trading volume before now it doesn’t seem like they will reach GameStop levels, but we’ll see it’s anyone’s guess.”

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EU plans to force USB-C chargers for all phones

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EU plans to make USB-C connectors the standard port for all smartphones and tablets, angering Apple

The European Commission rules to force manufacturers to create a universal charging solution for phones and small electronic devices. The European Commission is aiming to have a common charging port for all mobile phones, tablets, cameras, headphones, and handheld videogame consoles.

The ruling has been in the making for a decade, with environmental concerns the main driving force behind the historic move.

Reducing waste

The rule will reduce waste by encouraging consumers to re-use existing chargers when buying a new device. Politicians have been pushing for this uni9versal charging rule for over a decade.

Disposed and unused charging cables generate approximately 11,000 tonnes of waste per year.  Research shows the average person owns around three mobile phone chargers.

A decade ago there were about 30 different types of chargers, now, phones use either USB-C, lightning, and USB micro-B.

Rotten Apple

The move would see all smartphones in the EU sold with the same charger, a motion Apple is not happy about. The tech giant says this move would damage ongoing innovation.

The tech giant is the main manufacturer of smartphones using a custom charging port, as its iPhone series uses an Apple-made “Lightning” connector. Apple argues its Lightning connector is used by one billion active iPhone users.

“We remain concerned that strict regulation mandating just one type of connector stifles innovation rather than encouraging it, which in turn will harm consumers in Europe and around the world,”

Apple spokesperson

The proposed changes would apply to the charging port on the device body and will also standardise charging speeds. It may be a number of years before the proposals come into effect.

It will be thoroughly debated by the European Parliament and national Governments.

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Business

Trade war fires up as U.S companies pass tariffs onto consumers

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Japan Exports

The trade war between the United States and China is continuing to heat up, but this hasn’t stopped American businesses from leaving the Chinese mainland

This all follows the US implementing tariffs on billions of dollars worth of Chinese consumer products in a bid to bring manufacturing back to American shores.

A new report has found this is hurting the US economy and has not been successful in pressuring China to change any of its economic policies.

Meanwhile, businesses based in either China and America have remained “deeply integrated” with the other… with foreign investment into China hitting a record high of US$144.4 billion in 2020.

This comes as Joe Biden moves to review US policy towards China, including the previous policies of Donald Trump.

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Business

Energy prices soar for Europeans as winter chill approaches

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There are growing concerns for European residents as energy prices continue to skyrocket in the lead-up to winter

The wholesale prices of natural gas in Britain, France, Spain, Germany and Italy have reached record highs, with overall household bills now through the roof.

This all comes as the continent braces for a cold winter and fuel is needed for increased electricity generation.

Meanwhile, the Europen Consumer Organisation warns it has seen a huge price increase… saying “It’s worrying ahead of the winter when gas consumption will necessarily increase.”

This latest price hike is being caused by a number of factors… including a depletion of natural gas stockpiles during a cold spring and a growing demand for gas in China.

Russia is also supplying less gas to the market than it ever has before.

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