Meme stock trading playbook: Which investors should buy in?

Yahoo Finance Video and Julie Hyman

December 4, 2025

In this video:

MEME

-4.02%

Roundhill Investments CEO, Dave Mazza, joins Market Catalysts host Julie Hyman to discuss whether investors should be buying the meme stock trade (MEME).

To watch more expert insights and analysis on the latest market action, check out more Market Catalysts.

Video Transcript

00:00 Speaker A

One of the areas that sees whipsaws is in the meme stock area. You guys recently reintroduced the meme ETF. Um it’s not very big, um we should say, but you know, we’ve been we see sort of little spurts of activity within that world.

00:16 Speaker A

So, I mean, is it is it worth playing in memes at this point, especially if you don’t have high conviction on individual names?

00:23 Dave

Yeah, so it’s interesting. So, when we think about sort of the just these two funds that are on lineup, MAGS and MEMES, they’re kind of like the opposite flavors of M&Ms, right? So one is your uh big cap tech with incredibly strong balance sheets, robust cash flow. And then memes is really driven by volatility, driven by retail investors. And we saw, of course, saw a huge run-up in many of those names because there was a ton of interest in quantum, AI adjation, crypto names, getting into AI and things of this nature. Um, that’s pulled back pretty sharply. A lot of that is driven by that kind of uh December rate cut coming off off the table then coming back on. But for an investor who’s interested in sort of speculative area of areas of the market, one of the reasons we brought back meme was for people who wanted to take advantage of that, saying, we don’t believe meme should be the vast majority of anyone’s portfolio, but for someone saying, hey, as opposed to seeing is today the day where Beyond Meat’s going to get short squeezed or is is Drake going to finally invest uh in in open door, you can get access to that basket as part of your broader portfolio.

01:20 Speaker A

Okay. And do we still what’s the thinking on like the meme activity as a reflection on the of the bigger market?

01:26 Dave

So it’s interesting. So if we look at sort of the individual trading volume and then also if you include the options volume, there is a handful of those names, open door in particular and others sort of in the in the quantum and nuclear space, which have outsized volume relative to their market cap. So that’s indicative of course of traders who are trading the name, right? I mean it’s it’s simple math. Um but but essentially it’s really driven in that case by what’s happening in the macro environment and then the individual risk appetite on each of those names. And when we see, it’s kind of to be expected, when that risk appetite collapses like we saw in the early part of November, those names as a group are not necessarily going to perform well. Really in the last week or so, it’s seen outsized performance on the upside because that sort of more speculative behavior has come back pretty strong in what I’m calling kind of a reversal of the reversal. And today being kind of another good example, if we look at market action today of where uh people are kind of trying to pick their winners and really say what’s going to happen through the tail end of 2025 uh let alone what’s going to occur in 2026.

02:16 Speaker A

Yeah, and who knows at this point? But I’m sure we’ll talk about it again. Thanks so much for being here, Dave. Appreciate it.

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