Hot Meme Stocks to Watch and Invest in

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If you're looking to invest in some of the hottest meme stocks out there, you're in the right place. GameStop, for example, has been a favorite among meme stock enthusiasts, with its stock price skyrocketing by over 1,700% in just a few weeks in 2021.

GameStop's wild ride began with a short squeeze, where a group of retail investors banded together to drive up the stock price and force short sellers to cover their positions. This phenomenon is a key characteristic of meme stocks, where a small group of enthusiasts can move the market with their collective buying power.

The power of the meme stock phenomenon was on full display in 2021, with AMC Entertainment Holdings seeing its stock price surge by over 1,000% in just a few months. This was largely driven by a group of retail investors who saw the potential for a short squeeze and jumped on the bandwagon.

Take a look at this: When You Re Hot You Re Hot?

What Are Meme Stocks?

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Meme stocks are a type of stock where demand is created, at least in part, by communities on social media. They're often driven by viral digital content, or "memes", that spread rapidly online.

The attraction to a meme stock isn't based on fundamental analysis or qualitative research, but rather on the community that develops around it. This can lead to sharp surges in stock price, regardless of the company's current fundamentals.

GameStop's January 2021 rally is a prime example of a meme stock in action. The stock moved beyond the investing world and into the broader consciousness, driving demand for entirely new communities around different stocks.

Meme stocks tend to experience a lot of volatility, with values shooting up quickly when something exciting happens with the company. However, traders often panic and sell the stock with little provocation, leading to rapid declines.

Millennials love meme stocks and tend to drive their fluctuations, thanks in part to online commission-free investment platforms like Webull. Social media platforms like Twitter and Reddit have further perpetuated these meme stocks, often driving people to purchase stocks without thoroughly researching their financials.

The term "Reddit stock" has also been used to describe meme stocks, particularly those that gain traction on the Reddit social media platform. These stocks often have characteristics that attract Reddit users, such as being easily understandable and having the potential for enormous upside.

How Meme Stocks Work

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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.

The word "meme" comes from the ancient Greek word "mimema", meaning imitation, and is used to describe information that is imitated and often spread via pop culture references on social media.

A meme stock is a shared investing idea imitated by other investors, making it a viral phenomenon.

The meme stock movement unofficially started in the summer of 2020, when people were stuck at home during the pandemic and turned to the stock market and social media for ideas.

The ease of stock trading on new apps such as Robinhood Markets helped create a viral meme stock movement.

GameStop is recognized as the first meme stock, sparked by RoaringKitty's (aka, Keith Gill) views on Twitter, YouTube, and Reddit's r/wallstreetbets in 2019.

Top Meme Stocks Right Now

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As we explore the world of meme stocks, it's essential to keep an eye on the current market. Right now, there are five meme stocks worth checking out, beyond the famous GameStop and AMC.

Rivian Automotive, with a market cap of $11.2 billion, is an electric vehicle company ramping up sales of its electric SUV and pickup trucks. Blackberry, on the other hand, has a market cap of $1.3 billion and is a smartphone darling turned software company.

Here's a list of the top meme stocks right now, along with their market caps and descriptions:

Keep in mind that market caps can fluctuate rapidly, so it's essential to stay up-to-date on the latest numbers.

Top Right Now

Meme stocks have been making waves in the market, and it's essential to stay on top of the latest trends. Rivian Automotive (RIVN) is one such stock, with a market cap of $11.2 billion and a company description that includes electric SUV and pickup trucks.

Additional reading: Stock Market Fiasco Meme

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The market cap of Blackberry (BB) is significantly lower at $1.3 billion, but it's still a notable player in the market. This company was once a smartphone darling in the 2000s but has since pivoted to software.

SoFi Technologies (SOFI) has a market cap of $6.8 billion and is known for its fast-growing online banking, lending, and investment services. Palantir (PLTR) has a much higher market cap at $53.4 billion, specializing in big data, AI, and digital transformation.

Virgin Galactic (SPCE) has a relatively low market cap of $178.8 million, but it's an aspiring pioneer in space tourism and travel. Here's a quick rundown of the top meme stocks right now:

Bed Bath & Beyond Inc

Bed Bath & Beyond Inc is a meme stock that's been on a wild ride. The stock price was halted by the SEC in August 2022 due to its erratic movements.

In August 2022, the stock price swung wildly, with the stock up 314% at some points before crashing back down. The stock price closed at $9.53 on August 31, 2022.

See what others are reading: Meme Stock Price

Credit: youtube.com, Meme stocks: Bed Bath & Beyond, Party City surge despite business risks

The company made a significant announcement on August 31, 2022, to sell shares to raise cash for an undisclosed amount. Bed Bath and Beyond plans on closing about 150 lower-producing stores and cutting about 20% of both the corporate and supply chain workforce.

The company has obtained more than $500 million in new financing commitments and plans on going through a merchandise overhaul to attract customers and increase sales.

What Triggers Meme Stock Movement

The meme stock movement has a fascinating origin story. It unofficially started in the summer of 2020 when people were stuck at home during the pandemic and looked to the stock market for ideas.

A perfect storm of factors came together to create this movement. A combination of high short interest from short-sellers and an undervalued GameStop business was the starting point.

The ease of stock trading on new apps like Robinhood Markets also played a significant role. This made it accessible for new investors who grew up online to jump into the market.

Credit: youtube.com, Beware of ‘meme stocks’ making wild movements

A surge in new investors who were familiar with social media and online platforms helped spread the word about meme stocks. This created a viral effect that propelled the movement forward.

The pandemic was a major catalyst for the meme stock movement. It gave people extra free time and a desire to make money, which led them to explore the stock market.

Pros and Cons of Meme Stocks

Meme stocks can be incredibly volatile, with prices rising and falling rapidly due to social media hype.

Some meme stocks, like GameStop, have seen their prices surge by hundreds of percentage points in a short amount of time.

However, this volatility can also lead to significant losses if the stock price drops.

Meme stocks often have a strong online following, with enthusiasts promoting the stock on social media platforms like Reddit and Twitter.

This can create a snowball effect, where more and more people buy into the stock, driving up the price.

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But be cautious, as the opposite can also happen, and the stock price can plummet if the hype dies down.

Investors should be aware that meme stocks are often highly speculative and may not be backed by solid fundamentals.

For example, AMC Entertainment, a meme stock, has struggled financially in recent years, with significant losses and a high debt-to-equity ratio.

Despite this, the stock price has still managed to rise due to social media hype.

Investing in Meme Stocks

Investing in meme stocks can be a wild ride, but it's not for everyone. Meme stocks are a relatively new phenomenon in the world of trading.

The enthusiasm behind meme stocks has faded over time, but it's still possible to make money with them. In 2021, Reddit absolutely impacted the stock market, with meme stock rallies making thousands of dollars for investors in dozens of stocks.

To get started, you'll want to pay attention to tickers trending on Reddit, as it can offer insights into what the next meme stock might be. But be warned, meme stocks take careful research, as they can spike very quickly.

Investing in ETFs

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Investing in ETFs can be a great way to get exposure to the meme stock movement without having to build and manage your own portfolio. The VanEck Social Sentiment ETF is one example, an actively managed portfolio of 75 stocks that rank high in social media conversations.

This ETF has a relatively low annual expense ratio of 0.75%, which means it costs $7.50 per year for every $1,000 invested. The top holdings in the portfolio include Robinhood Markets, Microstrategy, and Palantir.

Intriguing read: Meme Stocks Etf

Should I Buy?

The world of meme stocks can be unpredictable and thrilling, but it's not for the faint of heart. Some stocks have already seen significant gains due to short selling, which is often sparked by conversations on social media sites.

Paying attention to trending tickers on Reddit can give you a glimpse into what the next big thing might be. This is a relatively new phenomenon in the world of trading, so it's essential to approach with caution.

Meme stocks can spike very quickly, making it crucial to do your research before investing.

Best to Buy

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Meme stocks can spike very quickly, so it's essential to do your research before investing.

Major exchanges are often preferred for meme stocks to prevent volatility and concerns over lesser-known companies.

Robinhood is a great platform for searching out meme stocks, offering a very intuitive user interface that makes it easy for new or experienced traders to get in on the action quickly.

You can trade commission-free on Robinhood, which can be a big plus for those just starting out.

Webull provides a similar experience but allows for more complex searching, making it a good option for those who need a bit more flexibility.

Reddit's Impact on the Stock Market

Reddit's impact on the stock market is a fascinating topic. The platform's influence on the stock market was most pronounced in 2021, when meme stocks like GameStop saw dramatic gains.

In fact, at least one hedge fund nearly blew up after shorting GameStop stock, and well-known short sellers ended the practice entirely due to the unpredictability of betting against retail investors.

Credit: youtube.com, The Unhinged Meltdown of Reddit's Worst Meme Stock Influencer

Reddit stocks and meme stocks are not the same thing, but there is a fair amount of overlap, with both relying on enthusiasm from individual investors. This enthusiasm can be fickle, and it's been steadily fading since 2021.

The pandemic played a significant role in the rise of meme stocks, as people were stuck at home and looking for ways to make money. The ease of stock trading on new apps like Robinhood Markets also contributed to the phenomenon.

In a more normalized world, Reddit's impact on the stock market has diminished, but it still surfaces quality investing ideas and can move stocks. The platform's influence is not as strong as it was in 2021, but it's still worth keeping an eye on.

The GameStop debacle in February 2021 is a prime example of Reddit's impact on the stock market. A group of Redditors decided to bet against the market, resulting in a huge stock surge.

Consider reading: 2021 Meme Stocks

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Finding trends in meme stocks can be done by exploring subreddits where investors sort by "hot" posts to see the most commented-on and/or most-viewed discussions.

Subreddits offer a unique style and focus, which means trending stocks can vary from one subreddit to another, but often overlap as well.

Flipping through subreddits can help investors find stocks that are trending on Reddit, and also discover the version of Reddit investing that works best for them.

Newer investors might find some of the content overwhelming at first, but the intuitive interface and sheer amount of content make it easy to catch up quickly.

Each subreddit has its own language and callbacks, but the abundance of content means new users can learn quickly.

Suggestion: Meme Stocks Means

If you're looking to stay up-to-date on the latest meme stocks, there are several popular subreddits to keep an eye on. One of the most well-known is r/WallStreetBets, which has over 12 million subscribers.

Credit: youtube.com, Reddit GameStop Stocks Memes

This subreddit is known for its community-driven approach to stock trading, where users share their own research and experiences. The community has been credited with contributing to the success of several meme stocks.

r/GameStop was another popular subreddit that gained significant attention in 2021, with many users sharing their own trading strategies and experiences. The subreddit has over 2 million subscribers.

The community on r/GameStop is known for its focus on short-selling, with many users sharing their own experiences of taking on short-sellers. This approach has helped to fuel the growth of several meme stocks.

r/DeepValue is a smaller subreddit with around 1 million subscribers, but it's still worth keeping an eye on for its unique approach to value investing. The community focuses on identifying undervalued stocks with strong potential for growth.

Consider reading: Gamestop Stock Meme

Meme Stock Analysis and Advice

Meme stocks can be incredibly volatile, with prices fluctuating rapidly in response to social media buzz.

Credit: youtube.com, How to evaluate meme stocks, according to two experts

The GameStop short squeeze in January 2021 is a prime example of this volatility, with the stock price increasing by over 1,700% in a matter of days.

It's essential to understand that meme stocks often lack fundamental value, making them more speculative investments.

The AMC Entertainment stock price surged by over 300% in a single day in June 2021, fueled by a Reddit-fueled buying frenzy.

Retail investors, not institutional investors, are the driving force behind meme stock movements.

The WallStreetBets subreddit community played a significant role in the GameStop short squeeze, with users coordinating buying efforts and sharing information.

Investors should be aware that meme stocks often have high short interest, making them more susceptible to short squeezes.

The short interest in AMC Entertainment stock was over 30% in June 2021, contributing to the stock's volatility.

Meme Stock Debacles and Explanations

The world of meme stocks can be wild, and one of the most notable debacles was the Gamestop debacle in February 2021.

Credit: youtube.com, Memestocks Won't Make You Rich (Probably)

Meme stocks shot into the public eye in February 2021 as a group of Redditors decided to essentially bet against the market – with shocking results.

Gamestop stock had the most dramatic gains during this period, but stocks like AMC and BlackBerry also saw huge spikes.

The enthusiasm behind meme stocks has faded to some degree, but that doesn't mean they're completely gone. In fact, many young investors are still hunting for the hottest new meme stocks.

Hedge funds had been betting against struggling companies like Gamestop and AMC, assuming that their stock prices would decrease. This betting against the market is also known as short selling.

Young day traders on Reddit decided to purchase these stocks en masse, resulting in a huge stock surge. This surge was so big that even the investment app Robinhood took notice.

Robinhood temporarily stopped purchase orders for Gamestop and AMC stocks, which immediately caught the attention of lawmakers from both parties.

Most of the meme stocks that became popular during this time period have since fallen in price. However, many young investors still managed to make big wins.

Sheldon Kuphal

Writer

Sheldon Kuphal is a seasoned writer with a keen insight into the world of high net worth individuals and their financial endeavors. With a strong background in researching and analyzing complex financial topics, Sheldon has established himself as a trusted voice in the industry. His areas of expertise include Family Offices, Investment Management, and Private Wealth Management, where he has written extensively on the latest trends, strategies, and best practices.

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