Meme stocks do have the potential for profit, however. In fact, the social media hubbub around meme stocks in recent months provided significant short-term gains for a handful of lucky traders. Still, I would say it is very important to understand that these success stories are rare.
While meme stock prices have seen incredible highs, they've also crashed significantly. The bullish approach of meme stocks is for short period, a week only in most cases.
When it comes to AMC, it's short sellers dealt massive $1.2 billion blow after weeklong stock rally. Investors shorting the meme stock AMC Entertainment are estimated to have lost $1.23 billion over the last week. Gamestop is also a good example, We saw incredible rise of Gamestop earlier this year, the stock skyrocketed in 2 days. But when the price began to fall, it lost close to 85% of its value in the span of just over a week.
All in all, I am not saying meme stocks are bad, it can give good return of investment in short time, but they are definately not for a inexperienced investor.
A good strategy about meme stock is..sell it as soon as you see a very small decline.