cult stock

English

Noun

cult stock (plural cult stocks)

1. A stock in a failing company whose price per share is inappropriately high because the company used to be a market leader or previously had a well-known popular product.
   • 2002 July, David Landis, “Sometimes, You've Just Got To Let Go”, in Kiplinger's Personal Finance, volume 50, number 7, page 42:

     With the demise of the dot-coms, you can make a strong case that a chain of doughnut shops has become America's favorite cult stock.

   • 2008, Thomas J. Lauria, Investor Relations, page 52:

     With a loyal core investor following, cult stocks inherently trade at a premium.

   • 2009, Michael Shulman, Sell Short: A Simpler, Safer Way to Profit When Stocks Go Down:

     Cult stocks like Palm and Sun Microsystems can exist on air for years because they have cash and a history even if their market share shrinks and their prospects dim.