The meme stock mania, which started earlier this year thanks to social-media forums, is gradually fading because most meme stocks don’t possess sufficient financial strength to support their massive price gains. We believe that fundamentally weak meme stock Robinhood (NASDAQ), GameStop(GME), or IronNet (IRNT), should be avoided. Keep reading. Meme stock emerged due to a pandemic, which prompted a diversion from traditional investment practices. This was due to the enthusiastic involvement of millennials in retail trading. Many social media platforms allowed retail traders to bet against hedge funds. This caused a temporary drop in fundamentally poor stocks. The meme craze has been slowly fading, however, as most meme stocks have failed to keep their high prices. A second reason is the rise of cryptocurrencies. Retail traders’ attention is shifting toward potentially lucrative opportunities offered by cryptocurrencies. While there are many new memes on social media, these are slowly being replaced by the more popular ones.

According to the alternative data provider Quiver Quantitative, the average number of daily comments on Reddit’s WallStreetBets forum last month was only half of its last year’s value. The third quarter saw a decline in users, funded accounts and active users on certain financial platforms that permit investors to invest stocks.

Therefore, it might be prudent to not keep meme stocks. Robinhood Markets , Inc. GameStop Corp (NYSE:), and IronNet, Inc. (IRNT) because of their weak growth prospects and bleak financials. IronNet, Inc., and (NYSE:) due to their poor growth prospects, and bleak financials.

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