Meme Stock Mania II — Responding when social media hypes your stock

Burson Buchanan's Matt Reid and David Reingold write that meme-stock mania is not just a market phenomenon but a comms challenge that demands strategic foresight.

The “meme stock” phenomenon is alive and well in summer 2025. A sequel to the COVID-era original, this version is again turning traditional investor relations and corporate communications efforts on their head. No longer a novelty of frenzied retail buying during the lock-down days of the pandemic, meme stocks have evolved into a real and somewhat predictable market force. Driven by social media and retail investors, the meme phenomenon can quickly inflate—and just as quickly deflate—a company’s share price and market cap. This “pump and dump” reality has left communications teams, investor relations departments and even CEOs perplexed, scrambling to react before and after the shares come back down to earth (or, in some cases, well below it).  

For those companies caught in the abrupt crosshairs of meme-stock attention, savvy communications are vital. Saying too little risks misinformation filling the void; saying too much or playing into hype can lead to reputational damage with long-term investors and customers – and possible interest from regulators – once the pendulum swings back. 

Let’s look at a (not so) hypothetical: A company generating narrow margins and modest returns has attracted an outsized interest in prominent online chats among retail traders, even though the company has made little to no recent news or business announcements. Almost immediately, the company’s shares jump up 15%. 

At that moment, all eyes are on the company. How and when to engage is not a binary “fight or fuel” decision. It is vital that the company evaluate the risks associated with dramatic fluctuations in its stock price and think strategically about how to address the newfound shareholder interest in upcoming financial communications (e.g., earnings, investor conferences). Let’s look at how this company (or any company) should prepare for potential meme stock interest, and how best to respond.

The first and most important step any company should take is monitoring far in advance of achieving meme stock fame. And that means listening and actively monitoring where the conversations are happening. The real-time dialogue that moves markets now starts on platforms like Reddit’s r/WallStreetBets, X (formerly Twitter), Discord channels, YouTube livestreams, and even TikTok. These communities spark retail interest, often traffic in misinformation, and drive the hype that drives stock prices. Identifying these conversations early can help companies prepare – and potentially tamp down – meme stock interest.

If and when a company does achieve “meme status” it is important to acknowledge the situation without amplifying it. Neither silence nor leaning into hysteria is a good option. The best antidote to volatility is clarity. Straightforward, fact-based acknowledgment of active trading activity, paired with a reminder of long-term strategic priorities, can go a long way. Thoughtful, fact-based messaging in CEO letters, Q&A updates on IR sites, and investor presentations can reinforce business fundamentals without stoking frenzy. It’s not just about protecting the stock price; it’s about protecting the brand and those closest to it. Transparent and grounded communications can serve as an anchor amid the chaos. 

There may be an urge to ‘join the party’ or play into the meme speak as companies determine how to address sudden stock rises.  A few companies have tried and succeeded – but more have failed. It is vital that companies tread carefully in addressing retail enthusiasm. Internet irony has a short shelf life and what might seem clever on X today can become tomorrow’s cautionary tale. That doesn’t necessarily mean silence. Look to clarify facts, reinforce your long-term business strategy and stabilize the narrative. If you do engage, have a team of experienced advisors ready at the helm, and do so deliberately and with discipline rather than improvisation.

Finally, regardless of how a company chooses to respond, it is vital to engage all stakeholders, not just shareholders. Meme status reverberates across the enterprise. Employees, customers, lenders, partners and suppliers all take note. Mitigate speculation and rumors by equipping internal and client-facing teams with the proper context, Qs&As and talking points. Reinforce your value proposition and let your partners know you’re still the same business they signed up for, even if a hashtag is now accompanying your stock ticker on social channels.

Bottom line: meme-stock mania is not just a market phenomenon. It is a communications challenge that demands strategic foresight and a grounded, clear voice. In such highly fraught, highly viral moments, companies can control how they are perceived by controlling how they respond. 

The best approach? Be transparent. Be responsible. And above all, be focused on strategy, building long-term value for all stakeholders.

Memes fade. Fundamentals don’t.
 

Matt Reid is the US CEO and David Reingold (pictured) is a senior VP at Burson Buchanan, a boutique communications firm advising boards and management teams on stakeholder engagement, investor relations and reputation management.

Published: PRovoke Media – August 14th 2025