Why WeWork may be the next hot meme stock

• Warning investors you company could be on the verge of bankruptcy is not as bad as it sounds in meme-stock world.
• Companies that have recently warned of imminent bankruptcy have seen their stock prices soar.
• WeWork is the latest company to enter meme status with a surging stock price despite bad news.

In the strange world of meme stocks, WeWork’s warning that it has “substantial doubt” that it can keep operating due to massive financial losses means it could be the next big thing for investors. 

It may sound counter-intuitive, but the playbook often used by the meme-stock crowd is to bid up the stock prices of companies that are flat-out telling investors they could soon be out of business, a scenario that often wipes out the entire value of equity in the business.