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Social media’s influence on investment decisions is undeniable, with viral trends capable of exponentially inflating the market value of associated companies. Tho, these trends, including phenomena like K-Pop, viral video games, and meme stocks, can become traps for unwary investors. The rapid translation of cultural movements into mass investment decisions, fueled by platforms like reddit, TikTok, X, and YouTube, presents both opportunities and meaningful risks, according to gustavo Martínez, Finance Professor at Francisco Marroquín University.
One recent example of a viral trend impacting the financial market is Pop Mart, the Chinese company behind the popular Labubu dolls. Created in 2015 by Hong Kong artist Kasing Lung, Labubus are collectible figures with a distinctive blend of adorable and sinister features, often seen hanging from the bags of social media influencers.
These dolls, priced around six euros, are sold in surprise boxes, adding an element of chance to their appeal. This craze has significantly boosted Pop Mart’s stock,with shares surging nearly 200% in 2025 alone. Since its IPO in December 2020, the company has accumulated a remarkable 600% profitability.
Did You Know? David Beckham has also been spotted with a Labubu, further fueling the trend’s popularity.
K-Pop’s Market Influence
K-Pop,a musical genre originating in South Korea in the early 1990s,represents another significant example of a cultural trend influencing financial markets. Social networks have propelled K-Pop’s global dissemination, transforming it into a cultural phenomenon that extends beyond music to encompass aesthetics and lifestyle.
HYBE Corporation, the entertainment company holding the rights to BTS, the most famous K-Pop band, has seen considerable financial gains. As its IPO in 2020, HYBE has consistently outperformed the Kospi, the South Korean stock market index, with a notable 56% increase in 2025.The accumulated profitability since its market debut is 124%.
However, HYBE’s stock performance is not without volatility. In 2022, when BTS members announced a temporary hiatus for military service, the company’s shares plummeted nearly 60%. The stock has since recovered, driven by the anticipated return of the band members.
Video Games and cosmetics: Riding the Wave
the video game and cosmetics industries also demonstrate the impact of viral trends on investment decisions, particularly among millennials and Generation Z. Roblox, an online gaming platform allowing users to create and play games, experienced a successful IPO in 2021. Despite a 72.4% drop in 2022, its shares rebounded, increasing by 60.5% in 2023 and 26.5% in 2024, with a further 64.5% gain in 2025.
Conversely, Unity, another game development platform, has struggled since its 2020 IPO, with shares declining by 52%. In the cosmetics sector,e.l.f. stands out with a remarkable 1,346% increase in share value since 2019,although its stock has corrected by 77% from its peak in the previous year.
According to José Manuel Marín Cebrián, economist and founder of Fortuna SFP, markets anticipate economic trends. Increased demand driven by viral trends leads investors to expect higher sales and profits, boosting stock prices.
The Perils of Meme Stocks and Cryptocurrencies
Meme stocks, fueled by social media enthusiasm rather than company fundamentals, exemplify the risks associated with viral investment trends. The GameStop, AMC, and Bed Bath & Beyond surges in 2021, orchestrated by retail investors on platforms like Reddit, highlight this phenomenon.
GameStop’s shares, as an example, skyrocketed by 2,200% in January 2021, reaching $120, but have as fallen by 81% to $22. AMC has plummeted by 99% from its 2021 peak,while Bed Bath & Beyond declared bankruptcy after a 600% surge in January 2021,underscoring the volatility and potential for significant losses.
Similarly, meme-based cryptocurrencies (memecoins), such as Dogecoin, Pepe, Dogwifhat, and Popcat, are driven by collective enthusiasm and speculation rather than practical utility. These cryptocurrencies experience rapid gains followed by sharp declines, amplified by traders betting against them.
Pro Tip: Before investing, research the company’s financials and long-term prospects, not just its current popularity.
The Fear of Missing Out (FOMO)
The fear of missing out (FOMO) plays a significant role in driving investments in viral trends. The allure of rapid gains can lead investors to make impulsive decisions, fueling speculative bubbles. Gustavo Martínez notes that many retail investors enter the market late, becoming trapped when the initial enthusiasm fades and the value plummets.
