What is a cult stock?
A cult stock describes a stock that has a sizable investor following despite the company lacking when it comes to its underlying fundamentals. Cult stocks promise that they will be the next big company after they make a new discovery or get a large contract.
Why are investors attracted to cult stocks?
Investors are attracted to cult stocks due to the potential of their market and product.
Do cult stocks have a story?
However, most, but not all, cult stocks do not provide investors with anything other than a story, typically generating very little, if any, revenue or profits.
Is Apple a cult stock?
Apple at one time was a cult stock, before its heyday as one of the most popular and successful companies in the world. It had an intense group of followers that loved its computers and software and investors that believed in its success, despite its shaky history, small market share, and less than stellar fundamentals.
Do cult stocks generate revenue?
However, most, but not all, cult stocks do not provide investors with anything other than a story, typically generating very little, if any, revenue or profits.
