“Memes move markets,” a Twitter user said.
It appears that indeed they do as Costco Wholesale Corp. (NASDAQ: COST) stock fell 13% on Wednesday after a fake headline about raising the cost of their hot dog and soda combo by US$1 was picked up by multiple Twitter accounts.
It was somewhat unsurprising to see that a number of the accounts that picked up and shared the “announcement” had blue checks. And the least surprising super spreader was the House Republicans‘ account. Apparently, they were so excited to use #Bidenflation, they couldn’t be bothered to verify the information.
The cost of the hot dog and soda combo stays at US$1.50, as it’s been since it was launched in 1985. This incident is not the first time that the pricing for the iconic pairing has been rumored to increase recently. It’s made headlines for at least two cycles this year as inflation rates continue to go up.
Costco has yet to make a comment but it’s been documented that the retail giant’s founder Jim Senegal once told the company’s CEO Craig Jelinek that if he raises the price of “the effing hot dog, I will kill you. Figure it out.”
A quick look into the meme account with a little Googling on the side would’ve easily revealed that the headline was fake or at the very least unverified.
Information for this briefing was found via Twitter and Costco. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.