Meme stocks just suffered their biggest drop since the stock market bottomed

Call it a case of meme reversion.

A basket of 20 stocks compiled by UBS that “gained popularity via online networks and social media platforms” — in other words, meme stocks — tumbled 5.4% on Tuesday, its biggest one-day drop since April 8, the 2025 closing low for the S&P 500 so far.

The worst performers in the basket were Tilray, Opendoor Technologies, Kohl’s, and GoPro — all of which had seen booms the prior week amid heavy options activity and little news, telltale signs of a retail, flow-driven, meme stock ascendance.

On Tuesday, Interactive Brokers Chief Strategist Steve Sosnick observed “a relative return to normalcy” for trading activity on the platform, with less love for some of the most speculative stocks that had previously been soaring.

Cheers to the folks at Renaissance Macro who flagged the slump in meme stocks, tweeting, “Broader implication for $SPX, probably more in factors than market, but notable.”