Meme Stocks: What They Are and 5 Top Stocks for February 2024

So, by definition, their interests and passions are important to AMC,” he said in a call with investors in 2021. Specifically, these retail traders are attempting to effect short squeezes in heavily short-sold stocks. This creates an event where short-sellers run for the exit, causing a rapidly rising stock to skyrocket higher as short-sellers buy to cover their position. Video game and accessories retailer GameStop is the perfect example rfp for software development of what can happen when the conditions are absolutely perfect for a short squeeze. Small-time traders flipped the script on hedge funds by driving the price of the heavily shorted shares up, forcing the bears to close their positions by buying back borrowed shares, which perpetuated the cycle. That said, the number of retail investors who are interested in Microsoft and other mega-cap stocks is likely to increase meaningfully.

As with other fast-moving businesses, SoFi’s biggest hurdle now is how quickly it can focus on breakeven. “Over time, just like offense and defense, offense slowly learns what defense doing,” Rehl said, with the “defense” the team of subreddit moderators tasked with keeping forums clean. Rich Duprey has written about stocks and investing for the past 20 years. Larry Ramer has conducted research and written articles on U.S. stocks for 15 years.

“The company is focused on right-sizing the balance sheet, while attempting to maintain strong relations with the AMC lifers still propping up the stock,” said Reese. AMC’s shares ended Friday’s session at $6.65, a far cry from their high of $393.63 on June 2, 2021, during the meme-stock frenzy. NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances.

  1. Unlike its predecessors and other investing message boards, WallStreetBets became known for its unconventional and often irreverent tone.
  2. Top meme stocks have certain requirements to qualify as potential meme stocks.
  3. Before closing its stores and selling its brand to Overstock, Bed Bath & Beyond was briefly a meme stock in 2022.
  4. Meme stocks are low-priced stocks that ran up in price for no particular fundamental reason other than short-squeezes perpetuated by retail investor enthusiasm and social media hype.

And original Meme stock, GameStop (GME), has seen its shares jump nearly 40%. “Meme stocks” are back — have you seen shares of Bed Bath & Beyond (BBBY)? But chasing best-known favorites may not be the best way to score, analysts say. Of course, because SMCI stock is a meme stock, the gains are amplified. As we saw with AMD, data center demand is soaring so the hardware needed for them will rise as well.

Video game retailer GameStop is recognized as the first meme stock. To search for trending meme stocks, be sure to visit MarketBeat’s Meme Stock list to compare companies based on figures like share price, short interest, social media engagement, market cap and volume. And remember that a meme stock is a short term trade, not a good investment for the long run. A meme stock refers to the shares of a company that have gained viral popularity due to heightened social sentiment.

Investors Get $252 Billion Richer From Nvidia Stock This Year

Equally worrisome, the company’s current liabilities ($279.2 million) are well over double its current assets ($111.4 million). This suggests Dave & Buster’s doesn’t have the capital necessary to meet its expense obligations over the next 12 months. An improving economy could help these figures immensely, but its future remains dicey, at best. First up is electric-vehicle (EV) charging products and services network Blink Charging (BLNK -0.69%). T-cells are white blood cells responsible for fighting infections.

About MarketBeat

The price increase drove out some short sellers early on as it attracted various big-name investors and public figures, such as Elon Musk and venture capitalist Chamath Palihapitiya. Hedge funds are types of investments that pool money together from wealthy investors, and short selling is when you borrow shares from a broker and immediately sell them with the hope that the stock price will fall. If it does, you can repurchase the shares at the lower price, return them to the brokerage and keep the difference as profit. Part of the motivation behind the online support for certain meme stocks comes from hedge funds’ short positions in those companies. 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. Looking to turn some of that extra free time into money, many people turned to the stock market and social media for ideas.

In addition, big investors, such as Scion Asset Management’s Michael Burry and Chewy co-founder Ryan Cohen, also took long positions. Stocks are sold short on margin (because they involve borrowed shares). As the price of the shorted stock rises, the short seller will begin to experience losses. These losses must be covered in a timely fashion, often prompted via margin calls, whereby the broker demands funds to make up for those paper losses. Both stocks also saw their shares rapidly increase by multiples. Meme stock activity was given a great boost from bored individuals stuck at home during COVID-19 lockdowns combined with zero-commission brokerage apps like Robinhood.

© 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart’s disclaimer. Meme stocks often happened to be hard to borrow, with a high short-interest ratio. GameStop followed suit in 2021, raising nearly $1.7 billion via a secondary offering of 8.5 million additional shares at an average price of more than $200 per share. The SPAC says new risks have emerged in its effort to buy Trump’s social-media company.

Top meme stocks right now

Its shares quickly rose in August 2022 to a high of $28, from $5.77 at the beginning of the month. The eye-popping gains have inspired legions of hopeful successors to the original meme stocks, and sifting through the noise of online stock manipulation has never been harder. Despite no shortage of headlines about the economic reopening, generous fiscal stimulus packages, and the Federal Reserve’s monetary policy, meme stocks have stolen the spotlight in the investing world this year. And that’s why analysts seem to think these meme stocks are played out. While a lack of interest in looking at fundamentals still appears to be a guiding force, some companies that are considered meme stocks today do possess good fundamentals.

Where the ‘meme stock’ phenomenon stands, 2 and a half years after the GameStop craze

The supply chain disruption during the pandemic also impacted operations. The company has not profited in its operating history since its launch in 2009. Meme stocks rose when rates were low, stimulus money was flowing and Americans were spending most of their time at home while COVID ran wild. The signals that sent stocks flying during the first half of 2021 won’t be the same ones that precede the next viral stock surge. Here are 2 schools of thought on identifying the next parabolic meme stock. Retail investors are always searching for stocks to send “to the moon.” Below are some of the hottest names that social media users are buzzing about during the week of November 8.

Seeing some of these rallies play out, by the shares of  companies with dubious fundamentals, has been remarkable. While GameStop was the first successful meme stock, it was not the only one. WallStreetBets users quickly identified other downtrodden stocks with heavy short interest to boost.

Bot manipulation, where automated accounts post and upvote others’ posts on one’s behalf, is more malicious and harder to prove, Rehl said. So-called “bot farms,” where people pay for fake accounts in the dozens, hundreds, or even thousands, plague the internet, and Rehl said it can be hard to tell if accounts are real or fake. On the date of publication, Rich Duprey did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

“I believe the retail crowd is fully invested in this theme, and Wall Street has jumped on the coattails,” Burry said. “We’re running out of new money available to jump on the bandwagon.” Roaring Kitty’s real name is Keith Gill who was also on Reddit as u/deepF…Value and active on the subreddit r/wallstreetbets. Gordon Scott has been an active investor and technical analyst or 20+ years. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.

While the number of NOK shares sold short has fallen substantially, many  meme-stock investors are still interested in the firm . If many institutional investors short Nokia again, NOK will certainly be a stock to keep an eye on. The sorts of short squeezes and parabolic moves that have proliferated really defied the rules of theoretical finance.

It’s also beneficial for cancer patients with low or unhealthy T-cells. One of the biggest threats is the potential for graft-versus-host disease (GVHD), where the donated T-cells attack the patient’s healthy cells as it views them as foreign. ALLO shares reached a high of $55 in May 2020 and fell to a low of $4.30 in June 2023. It connects borrowers with lenders, including more than 60 banks and credit unions, to find the right match.

One example is the VanEck Social Sentiment ETF (BUZZ -0.77%), 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).

You may also like...

Leave a Reply

Your email address will not be published. Required fields are marked *