What happened

Shares of fuboTV (FUBO -1.67%) were 17% higher on Wednesday as so-called meme stocks went airborne, with AMC Entertainment Holdings' shares doubling in value

So what

Whether it was mo' (momentum) or FOMO (fear of missing out) that drove shares higher today, Reddit traders were rallying around stocks that are heavily shorted. 

FuboTV doesn't have as many shares sold short as it did back in January, when the whole meme stock movement took on a life of its own, but their total is up 28% from last month and represents more than one-fifth of the live-streaming sports platform's shares outstanding.

Sports fans reacting to event

Image source: Getty Images.

Now what

It's going to be a volatile time for these kinds of stocks as retail traders pile into them in the belief they're defending them from hedge funds and others trying to unfairly drive down their price. Yet long-term investors (which is what you should be) should continue to focus on fuboTV's fundamentals, which hold promise on their own.

For example, just yesterday fuboTV was reported to be upgrading its app dashboard to show live sports stats and let users take quizzes for a chance to win a year's free subscription to its streaming platform.

Ostensibly to enhance user engagement, the upgrade sets the stage for the introduction of sports betting later this year as an engaged viewer will more likely place bets.

In the meantime, look for fuboTV's stock to go through bouts of dizzying gains and declines as this trend plays itself out.