Best of Bloomberg Intelligence (08/19/2022)

The video discusses meme stocks, highlighting their poor long-term investment potential. It explains the methodology used to identify meme stocks based on high attention relative to size, using factors like average volume and short interest to market cap. The analysis shows that meme stocks have underperformed significantly compared to the Russell 3000 index. The video also compares this methodology with the MEME ETF, noting similar results despite not using social media data.

What is the main concern about meme stocks as discussed in the introduction?

• They are too expensive.

• They are not a good long-term investment.

• They have high dividends.

• They are not popular enough.

Which two factors are used to identify meme stocks in the methodology discussed?

• Market cap and earnings per share

• Price-to-earnings ratio and dividend yield

• Average volume to market cap and short interest to market cap

• Social media mentions and price volatility

How did meme stocks perform from 2010 to the present, according to the analysis?

• They were stable with no significant changes.

• They consistently provided high returns.

• They had a cumulative return of 12%.

• They outperformed the Russell 3000.

During which period did meme stocks show a brief positive performance?

• 2012-2013

• 2018-2019

• 2015-2016

• 2020-early 2021

What is a key difference between the methodology discussed and the MEME ETF's approach?

• The inclusion of international stocks

• The focus on dividend yield

• The use of social media data

• The emphasis on company earnings