top meme stocks

All hedge fund data is based on the exclusive group of 900+ funds tracked by Insider Monkey that filed 13Fs for the Q reporting period. However, «virality» works both ways, and memes often have short lifespans. Social media influencers can push meme stocks higher if enough eyeballs land on their posts, but the rallies usually dissipate as quickly as they start. And for those who entered these stocks at the end of the rally fray, the results were frequently disastrous. The meme stock meaning piggybacks on this viral nature as many traders flocked to these stocks due to repeated pushing on Reddit, Facebook, Twitter, Instagram and other social media outlets. News of these stocks spread like wildfire throughout the internet, causing lots of dollars to flow in from various sources.

  • Refrain from getting caught in the hype and treating these stocks as quick trades, not multi-decade holdings.
  • Stocks are sold short on margin (because they involve borrowed shares).
  • GameStop shares rose from around $20 to over $400 in a few weeks, kicking off the meme stock craze.
  • Even so, while it’s gone from $10 to $50, and back to $10 and below, now may be a great time to initiate a position.

Yet while it’s delivered an outsized return this year, “old school” iron ore and steel player Cleveland-Cliffs continues to trade as if its earnings are about to fall off a cliff (pun intended). It’s important to remember that the gains from meme stocks can disappear just as quickly sbi cheque book delivery status as they come in. This means that you must be an active trader to make money from meme stocks, and things could end poorly if you mistime a trade. Moreover, as the price swings of these popular meme stocks indicate, you could lose a lot of money in this risky style of trading.

How Social Media Influences Meme Stocks

This may have been due to its low stock price, or perhaps due to familiarity with its brand. Yet its gradual move to over $6 per share, after crashing following the first round of meme mania? Instead, the telecom equipment maker’s bounce back toward near its 52-week highs was due to improving fundamentals. To be fair, social media-driven investments that dominated headlines last year were mostly speculative wagers. However, we have seen some of the more familiar names in the stock market dominating the social media chatter.

top meme stocks

It also depends on knowing which stocks will pop and which won’t — which is essentially impossible. If you’re not interested in building and managing your own portfolio of meme stocks but still want some exposure to the movement, there are some ETF solutions to help. One example is the VanEck Social Sentiment ETF (BUZZ -0.61%), an actively managed portfolio of 75 stocks that rank high in social media conversations. Top holdings in the portfolio include GameStop, AMC, and Palantir. This ETF has an annual expense ratio of 0.75% (meaning it costs $75 per year for every $1,000 invested). Because a surge in buying activity can send a stock price soaring, there are some benefits to owning meme stocks (and potential meme stocks before they rocket higher).

AMC Entertainment Holdings, Inc. (AMC)

This social sentiment is usually due to activity online, particularly on social media platforms. These online communities can dedicate heavy research and resources toward a particular stock. Meme stocks often have heavier discourse and analysis in discussion threads on websites like Reddit and posts to followers on platforms like X (formerly Twitter) and Facebook. The VanEck Vectors Social Sentiment exchange-traded fund (ETF) tracks retail investor sentiments from online sources and then invests in U.S.-based stocks making the headlines. The fund is appealing to investors interested in meme stocks and related retail trader activity.

  • That’s why the company has pledged to target mid-single-digit dividend increases through 2030.
  • In all, the TLRY stock price has fallen nearly 89% since hitting its 52-week high on Feb. 10.
  • Currently, with shares having pulled back over the last two months, and monthly stochastics trending slowly higher in oversold territory, this best meme stock to buy could shape up smartly in July.
  • As a result, the meme stock concept adopted a David vs. Goliath or Robin Hood connotation of taking from the rich Wall Street elite and rewarding the small retail investor.

With enough online support, meme stocks can maintain elevated stock prices regardless of the underlying company’s worth. Still, meme trackers identify FL as one of the meme stocks for speculators to consider. And on a financial basis, you could make the argument that it’s undervalued. In particular, Foot Locker posted a three-year revenue growth rate (per-share basis) of 7.7%, beating out 63.67% of its peers. Even with this solid stat, FL trades at only a sales multiple of 0.22x, well below the median of 0.69x. Yes, as long as social media and communities like WallStreetBets exist, there will be companies that fit the mold of a meme stock.

What’s the future of meme stocks?

The chances of federal pot reforms still appear questionable for 2022 too. With this, plus a recent report from Barclays arguing that there’s not much upside for Canadian cannabis companies from U.S. pot reform, Tilray stock has continued to draft lower. Of course, like with any clinical-stage biotech play, be careful. Even if the data allegation brouhaha finally goes away, SAVA stock will likely experience another massive drop, if the FDA rejects Simulfilam for FDA approval. Nevertheless, with the big potential for it to bounce back in 2022, keep an eye on it. As InvestorPlace’s Louis Navellier argued in early December, there’s tremendous upside with this stock, if Simulfilam gets through the allegations, and makes its way through the FDA approval pipeline.

Roundhill Investments came out with a meme stock-focused ETF in December of 2021 under the ticker symbol ‘MEME’. MEME features an equal-weighted portfolio of 25 stocks based on social media popularity and market sentiment. The top 25 such firms are included in the portfolio, which is re-examined and rebalanced twice a month. Collectively, their independent actions have been shown to initiate short squeezes in heavily shorted names. As a result, meme stocks can become overvalued relative to fundamental technical analysis.

What Are Meme Stocks and Are They Viable Investments?

Click the link below and we’ll send you MarketBeat’s list of thirteen stocks that institutional investors are buying up as quickly as they can. Meme stock mania will be a chapter in finance textbooks for decades. But the forces that came together to make meme stocks go parabolic were rare and unusual. It took a wave of stimulus, low interest rates, a population mostly stuck inside and a host of characters who spawned massive followings. And even with those forces coming together, the price action was short-lived, and investors who entered the trade late frequently lost their shirts. In January 2021, Wall Street Bets users piled into GameStop, sending the retailer’s stock price soaring a staggering 3,000% in the space of a month and fueling massive losses for hedge funds that had shorted it.

The company’s losses narrowed from $506 million in the first quarter of 2022 to $286 million during the same quarter this year. Adjusted EBITDA figures are the real star here though, as Carvana’s $24 million loss this quarter was a huge improvement over the $386 million loss 12 months earlier. Several of the stocks listed below are absolute leaders in their respective industries, and among the most important firms globally.

But between now and then, shares could make another bolt to the skies. Progress with its business could convince investors to warm back up to it. Before 2021, it was a bit of an “also ran” when it came to locking down 5G deals with telecom companies. But throughout the year, it’s had more success tapping into this demand. This, coupled with success with its turnaround efforts, points to a promising future for the company.

It seems to be a case of investors looking forward to a brighter future after a dismal 2022. Shares of the stock plunged more than 70% in 2022 as the company’s fundamentals fell apart. Last year’s bottom line is expected to fall into the red by an unadjusted $495.1 million. The stock rallied to $1.50 or more on several occasions, and even hit $3.96 in February. It has an expensive valuation compared to many of its peers, as the shares trade at nearly 20 times sales.

Meme Stock Investors Derail Wall Street Bets on AMC Legal Fight – Bloomberg Law

Meme Stock Investors Derail Wall Street Bets on AMC Legal Fight.

Posted: Tue, 15 Aug 2023 07:00:00 GMT [source]

Buying AMD now and watching that pursuit play out is very likely to result in returns based on the market’s reaction to AMD in 2023 thus far. Wall Street believes TSLA shares are slightly overpriced at the moment. However, independent research site Gurufocus has landed on a price of $450 for Tesla based on its proprietary pricing model. It’s going to take years for Virgin Galactic to experience its true “lift off” moment.

New MarketBeat Followers Over Time

Interestingly, the defeat also occurred despite June’s broad-based decline to new relative lows. Currently, with shares having pulled back over the last two months, and monthly stochastics trending slowly higher in oversold territory, this best meme stock to buy could shape up smartly in July. Shares are also prone to being muscled easily for short periods given little Wall Street coverage.

top meme stocks

The cannabis sector continues to draw speculative interest, although profitability still seems to be years away. And Sundial Growers remains one of the most volatile stocks in the sector. The company also recently acquired PulseVet, which gives the company another revenue-generation opportunity for the company that should start contributing to the company’s revenue in the next few quarters.

Why Invest in Meme Stocks?

One of the primary reasons for the rise of meme stocks was the resentment most people felt toward corporate America in light of the COVID-19 pandemic and rampant inflation. However, the performance of these stocks soon became another factor that increased their popularity. According to an Acuitas Investments report from September 2021, meme stocks outperformed traditional stocks by a significant margin in that year. In January and February 2021, the performance of these stocks was on the rise by 110.2% and 9%, respectively, while the Russel Microcap Index showed figures of 14.2% and 6% for the two months. In June as well, meme stocks rose by 24.7% while the Russell Microcap Index rose only by 2.2%. The meme stock movement unofficially started in the summer of 2020, when most people were stuck at home during the first few months of the pandemic.

And unsurprisingly, this past year’s more sketchy social media-driven meme stock movement sensationalized by Reddit’s r/Wallstreetbets over-the-top exploits have been largely quieted and severely punished. Even with meme stocks, the old adage, «Don’t put all your eggs in one basket,» still rings true. The good news is that meme stocks come from all nooks and crannies of the stock market, so it’s possible to build a diversified portfolio of holdings that can catch a tailwind from various places.