Why Meme-Stock Mania Keeps Happening

A meme-stock craze took hold on Wall Street once again in mid-October, as shares of Beyond Meat Inc. surged more than 1,300% over a four-day period. The sudden rally echoed frenzies that originated during the Covid pandemic and have periodically set off unusually large jumps in beaten-down stocks championed by social media influencers.

Shares of the struggling maker of plant-based burgers traded as high as $7.69 on Oct. 22, up from 52 cents at the Oct. 16 close. After paring some gains, the stock hovered at around $3.34 on Oct. 23. There is little to suggest that the company’s prospects have improved; indeed, even with the recent gains, the stock is down about 98% from its record high in 2019. But the rush to buy a beleaguered consumer company drew comparisons to previous meme-stock episodes.