What’s Behind the Drive in Meme Stocks?

VerityData Director of Research Ben Silverman breaks down the meme stock trend as companies like AMC Entertainment (AMC) and GameStop (GME) get market attention.

“I’m reminded of the Dot-com bubble,” he said Monday on TDS Ameritrade Network, citing  disconnects between perceived market value and the actual fundamentals of business operations.

Silverman recommended analyzing insider activity, like stock buybacks, to better understand the quality of the company and its business.

He cited Bed Bath & Beyond (BBBY) as an example of meme stock with good indicators from insider activity.

“Insiders have been buying over the past few quarters … so at least we have an understanding the management is invested in the long-term health of the actual operating business. ”