How a meme has plunged Costco stock

How a meme has plunged Costco stock

The GameStop case has already gone around the world and will go down in history. What happened yesterday, just as worrying, will also do it. This time, yes, there are no large groups of small investors, just a ball of misfortune that has temporarily plunged the value of Costcoone of the big US food companies.

The story is as follows, a Twitter troll account share a meme in which it was hinted that, given the great inflation that is ravaging the US (and the world), Costco was going to increase the price of its famous hot dogs from $1.50 to $2.50, something that had not been never past.

The combination of hot dogs, along with fried chickens and low prices at Costco gas stations, are among the most characteristic features of the chain and for which it is famous. The change in the price of its most popular combo is one of the most recurrent false stories, which from time to time jump around the internet as an example of immutable prices well rooted in US society, by following the same price since the 80s.

The consequence? The company’s shares plunged 13% on the market. in a short time, making the company lose millions in value, and dragging down other similar companies. And he still hasn’t fully recovered.

A meme with consequences: losing hundreds of millions

The problem was not only in the meme, but in the fact that many large Twitter outlets, and verified accounts, shared the false news and the ball was increasing until the value began to plummet:

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When the matter was denied, the damage had already been done, and millions had disappeared. Even the Twitter account of the Republican House of Representatives shared the fake news:

The meme’s author, @JohnWRichKid, has since deleted the original meme, but has bragged about how he has fooled major Twitter accounts and the GOP itself, and posted a compilation of it:

The consequences are not very clear, but the truth is that it has been an unprecedented earthquake and a huge headache for Costco, so it is quite likely that it will take legal action. What is clear is that, nowadays, memes can make the world burn.