The "best" meme stock may often have climbed the most but also has the highest probability of falling back down. The best meme stock to buy meets the criteria of poor fundamentals, high short interest, a small float with social media buzz and rising volume. Check out our list of six that could be the next meme stock to make headlines.
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. 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. Simply put, meme stocks skyrocket in price in a short period (often hours or days) because of a sudden surge in interest online or on social media and subsequent buying among small individual investors.
- Though they dipped back to 84 cents in 2022, that still represents a three-year CAGR of 41%.
- Smartphone pioneer Blackberry was another meme stock in 2021.
- First up is electric-vehicle (EV) charging products and services network Blink Charging (BLNK -0.69%).
- However, as a shareholder of Intercept I can also attest that there are justifiable reasons for people to be pessimistic.
- Diversification across multiple investments helps buoy your portfolio in case one investment sinks.
That was the fuse triggering the short squeeze, which then took on a life of its own as it moved higher. Even GameStop can’t be the next GameStop stock with just a 16.95% short interest repeating what happened at the dawn of the meme stock bubble. The next GameStop stock will have to have more than a 100% short interest. The harsh docker vs kubernetes vs openshift reality of markets is that for every buyer, there must be a seller. For every trader that nailed the bottom of a stock, someone else sold at the worst possible time — and every time an investor sells at the peak, someone must have bought ahead of the crash. Some unlucky soul bought GameStop shares at its all-time high of $483.
Intercept Pharmaceuticals
In January 2021, retail investors organized on Reddit and other platforms to buy and hold shares of the video game retailer. This move went directly against traditional investors who were short-selling the stock in hopes of buying back their shares at a cheaper price. To thwart those ambitions, Redditors gleefully managed to raise the price of GameStop shares to an all time high of $483.
Where Are the Meme Stocks Today?
Palantir Technologies was called the “best pure-play” in AI and also like AMD, should get its quarter’s worth out of this ride. Where once it was firmly just a government agency numbers cruncher, the big data outfit now is firmly ensconced in the commercial market. Revenue https://forexhero.info/ from the U.S. enterprise segment is rapidly rising, shooting 70% higher to $131 million last quarter. It reported more than $1 billion in commercial revenue for the full year. Meanwhile, AMC still had net debt of $3.7 billion as of the end of the third quarter of 2023.
Reddit meme stock crazes before the company IPOs
The Motley Fool has no position in any of the stocks mentioned. My expectation has always been that OCA would get the nod for NASH, even if it's only for a small subset of the sickest patients. Since there are no approved treatments for NASH, this gives Intercept an even better case for approval. The issue is that it could be a while before additional clinical data is available for the company to make another run at FDA approval. To begin with, Reddit investors are often younger, and young people are more likely to demand action be taken to curb climate change. Beyond just pushing away from fossil fuels, ancillary players like Blink Charging will need to step in to help provide the infrastructure for an army of EVs that'll be hitting the roadways in the coming years.
GameStop stock had a 140% short interest, making it highly susceptible to a short squeeze, akin to lighting a match in a kerosene-soaked warehouse. In general, many of the meme stocks that saw sky-high stock prices in 2021 have come down quite a bit in 2022, sometimes to below where they started. Others, notably GameStop, remain elevated, although still far lower than the all-time highs.
MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... Meme stocks rely on the fear of missing out (FOMO) and short-squeezes to accelerate and maintain their altitude. FOMO drives the pain of a missed meme stock, making you anxious to jump on the next big meme stock. Allogenic CAR-T is also called "off-the-shelf," where other T-cells are donated rather than a patient's, allowing for speedier and more consistent treatment.
GameStop's miraculous surge began in January 2021 after Ryan Cohen, the founder of online pet-store company Chewy, joined the company's board and inspired optimism among investors. Cohen could spearhead GameStop's e-commerce efforts and help the company get back on track, investors believed. In any case, I’d certainly recommend considering buying MSFT stock now .
Then again, interest expenses totaled 5.6% of net sales in the first quarter, up from just 1.1% of total sales in the first quarter of 2019. It also has the best stock symbol AI when AI integration and usage is a major tailwind. AI shares peaked at $183.90 in December 2020 before selling off to a low of $10.16 in December 2022. The global AI frenzy has sent AI shares up over 260% in 2023. The short interest climbed on a bearish report released by Hindenburg Research, which sent shares falling by nearly 40% before surging through its yearly highs, peaking at $48.87 in June 2023.
With the stock now trading north of $23, Palantir is up over 260% over the past year. Quite a remarkable comeback but there is still much more room to grow. Revenue surged 45% in 2020 and then accelerated from there, growing an additional 68% in 2021 and 44% in 2022. Earnings grew from 30 cents per share in 2019 to $2.57 per share in 2021.
Ultimately, a short seller may run out of available funds to hold on to the short and will be forced to buy back the shares at a higher price and close out the position. If many shorts are forced to cover at once, it adds additional upward pressure on the stock's price as they are all forced to buy the stock and cover at ever higher prices. This is known as a short squeeze, and it accelerates a stock's price increases as more and more short sellers are forced to bail out to cut their losses. One of the features of meme stocks, especially early on, has been that they tend to be heavily shorted names. This means that there is a lot of short interest in the stock, or that a large proportion of the company's outstanding shares have been sold short.
Meme stocks are actual stocks listed on exchanges and available for trade. However, critics argue that their price performance and appeal have little to do with their fundamentals and much to do with their entertainment value as speculative playthings, much like casino games. With the internet, chat rooms and discussion boards devoted to investing and promoting stocks also arose. In the late 1990s and early 2000s, these sites helped promote and drive up the prices of so-called dotcom stocks—a bubble that famously burst with far-reaching economic consequences. Risking money in speculative investments can be exhilarating, but it is rarely the path to long-term wealth. Investing in low-cost index funds and through tax-advantaged retirement accounts such as IRAs has a higher likelihood of success than relying on risky investing strategies.
This Canadian company is known for pioneering the smartphone, but it quickly went by the wayside when Apple revolutionized the space. These days, Blackberry is a software firm providing endpoint security software and other Internet of Things management products for customers such as the auto industry. Rivian is currently in the midst of "production hell," a phrase coined by Tesla CEO Elon Musk when his company was trying to ramp up factory production to stem cash losses. Rivian has had hiccups getting its R1T electric truck out the door, but it's making progress. If picking the right Meme stock seems impossible, Meme stock ETFs try to simplify the process. In addition to Roundhill Meme, there's SoFi Social 50 (SFYF), VanEck Social Sentiment (BUZZ) and AXS FOMO (FOMO).
Top meme stocks now
These short-term surges can often reverse course just as quickly, though, making meme stocks far more volatile than average stock market moves. Reddit, one of the social media platforms responsible for launching the meme stock phenomenon in 2021, is going public this year. Securities and Exchange on Thursday announcing that it is reserving some of its IPO shares for eligible Reddit users and moderators who have contributed to the platform.
That’s because, as stocks’ valuations come down, the share prices of many companies, including Microsoft, have fallen meaningfully, making these names more attractive to many retail investors. Like GameStop, NOK stock jumped by an incredible amount in early 2021. Many retailer investors became interested in Nokia because of the high number of its shares that were being sold short by institutional investors and hedge funds.
