Remember the frenzy around Dogecoin and GameStop a few years back? These two unlikely heroes, from the world of cryptocurrency and traditional stocks respectively, became poster children for the “meme stock” phenomenon. But how have they fared since the initial hype? Let’s dive into their price journeys, social media influences, and see what a $1,000 investment in each would be worth today.
Dogecoin (DOGE) and GameStop (GME) may seem like an odd couple. One’s a digital currency started as a joke, while the other’s a brick-and-mortar video game retailer. However, they share a key similarity: both experienced meteoric price rises in 2020 and 2021, fueled by enthusiastic retail investors.
These investors, often active on social media platforms like Reddit, aimed to challenge the dominance of established financial institutions. Their strategy? Coordinated buying sprees that sent shockwaves through the market.
For GameStop, the result was a surge from under $20 at the beginning of 2021 to a staggering high of nearly $500 in January. That’s a mind-blowing 2,700% increase in less than a month! Dogecoin also enjoyed a spectacular run, jumping from under $0.05 in February 2021 to an all-time high of nearly $0.75 in April, representing a gain of 1,400%.
These price movements were fueled by social media buzz. For Dogecoin, Elon Musk’s tweets and viral memes played a major role. GameStop’s surge stemmed from a buying frenzy initiated by the Reddit community r/WallStreetBets. The situation even got spicy when some brokerages limited buying activity on GME, further inflaming the rally.
Fast forward to today, and the initial hype has subsided. Both DOGE and GME are significantly lower than their 2021 peaks. However, they haven’t completely fizzled out. Here’s the surprising part: a $1,000 investment in each of these two meme stocks two years ago would still be worth a decent amount today!
In fact, that $1,000 investment would have grown to a total of $2,860. Breaking it down, your DOGE investment would be worth $1,660, while your GME would be worth $1,200. That’s a combined return of over 40%, which actually outperforms the S&P 500’s gains of just over 30% during the same period.
It’s important to note that this return wasn’t without its bumps. The GME investment wouldn’t have been profitable until recently (May 2024), when the price surged again following a social media comeback by Roaring Kitty, the online persona credited with sparking the initial GME frenzy.
So, the tale of these two meme stocks is a reminder of the unpredictable nature of the markets, the power of social media, and the potential rewards (and risks) associated with unconventional investments.
Still thinking about investing in meme stocks or cryptocurrency? That’s entirely up to you but before you do, I sure hope you do your research and only invest monies you can afford to loose. The stock and crypto market are highly volatile but meme stocks and crypto currencies, are even more volatile
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