maart 3, 2022

What Are Meme Stocks, and Are They Real Investments?

It’s also worth noting that SPCE is currently one of the only ways to invest in space tourism at the moment. Neither Elon Musk’s SpaceX nor Jeff Bezos’ Blue Origin have not gone public yet. Plus, with the cash at their disposal right now, it doesn’t look like they will float their shares to the public at this stage. Lastly, movie theater chain AMC Entertainment (AMC 2.57%) has made its fair share of millionaires in 2021.

The catalyst is that the offices make an agreement to buy the assays that are required to run the diagnostic tests directly from Zomedica. And that’s why, if you’re looking to buy the stock in 2022, you’ll want to look at their cybersecurity offerings that currently accounts for approximately two-thirds of BlackBerry’s revenue. Between AMC’s move into the non-fungible token (NFT) space and its willingness to accept some forms of cryptocurrency, the retail crowd believes there’s an emerging growth story for AMC stock. Despite blue wave election results, U.S. pot legalization failed to happen in 2021. 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.

  • In its most recent quarterly result, GME stock reported a narrower loss than anticipated and provided an optimistic forward guidance.
  • Tilray may be a situation where going against the grain could pay off.
  • The rise of meme stocks was one of the biggest stories during the volatile markets of 2020 and 2021.
  • Video game retailer GameStop is recognized as the first meme stock.
  • That said, don’t take this to mean all meme plays are “avoid-at-all-cost” situations.

More than a dozen U.S. oil explorers ended up on IBD’s best 100 companies list. All companies on IBD’s Best Companies Of 2021 were priced at $12 or higher at the start of the year and have an average daily minimum trading volume of 100,000 shares per day. On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. If you’re going to invest in SNDL stock in 2022, you have to be convinced that their business model will work. But before you answer that question, you have to buy into what that business model is.

Ticking Time Bombs: 3 New Stocks to Dump Before the Damage Is Done (IPO)

In this article, you’ll learn the history of meme stocks, how the current meme stocks differ from the originals and why you shouldn’t put these stocks in your basket ahead of long-term investments. As with other highly volatile investments (such as the related cryptocurrencies movement), there are drawbacks to betting on meme stocks. The first of our meme stocks to buy are shares of Bionano Genomics. While meme stocks universally get a bad rap for being companies with little or no prospects, BNGO stock’s Saphyr genome mapping system is earning solid praise from healthcare researchers. GME stock is what really started the Reddit-induced frenzy we’re seeing today. This pick has achieved iconic status among enthusiasts, surging several times in the last year.

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. These included AMC Entertainment Holdings Inc. (AMC), the movie theater chain that saw flagging profits amid the COVID-19 pandemic, and Blackberry Limited (BB), the outmoded smartphone maker. Technically, this week’s gains have shares aligned with the high of this meme stock’s monthly bottoming candlestick formed in May off CLNE’s 62% retracement level. But in an imperfect world, given its position in neutral territory and clean-looking buy point, a July $10/$16 collar looks fitting for the situation.

  • The Robinhood app saw overwhelming trading volume in meme stocks at times, causing multiple trade delays, outages, and platform crashes.
  • Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer.
  • So here are the best meme stocks to buy as we close out September.
  • Meme stock mania will be a chapter in finance textbooks for decades.
  • COVID-19 shut down large swaths of the nation and resulted in unprecedented stimulus from the federal government.

This strong correlation between GME and Reddit may be the most trying part of an investment at this point. Instead, it’s looking to harness the positive momentum and pivot in a new strategic direction. is forex trade profitable Still, the divorce between fundamentals and valuation is not something everyone can stomach. If you are a value investor, there is no way you can reconcile the price with the books.

Why Invest in Meme Stocks?

The retail buying triggered massive short covering among hedge funds that fueled the rally even further. Small investors piled into stocks in 2021, at times banding together on online forums like Reddit’s WallStreetBets to stoke a frenzy over certain companies like GameStop. The financially struggling video game retailer surged more than 1,600% in January as novice investors using trading apps like Robinhood snapped up shares. The mania led to big losses how to avoid overconfidence bias for some hedge funds, multiple halts in trading and congressional hearings asking who was getting hurt. If you’re an investor looking for a longer-term holding (think years rather than days, weeks, or months), there are some important factors to consider before buying a meme stock. Some business fundamentals and economic trends can go a long way toward balancing out what can be fleeting social media trends or hopes of a short-term short squeeze.

Investing in meme stocks and ETFs

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. SAVA stock has attempted to bounce back a few times since then. But so far, it’s failed to get back to past price levels (well above $100 per share, versus around $44.75 per share today). Still, despite its rebound struggles, this high-risk, high-possible return biotech remains a story stock worth keeping an eye on. Too much of the bull case hinges on its relatively lower valuation.

I’ve long felt that TSLA stock is valued the way it is because investors view it as a technology play more than an electric vehicle (EV) play. However, it would seem that the company’s immediate fortunes will depend on its EV business, which should be a catalyst in 2022. When it comes to meme stocks, AMC Entertainment is the Robin to GameStop’s Batman. What matters is that the committed AMC army has seen the stock post a 1,000% gain in 2021.

Unlike its predecessors and other investing message boards, WallStreetBets became known for its unconventional and often irreverent tone. In this and other forums that have popped up since, users work together to identify target stocks and then promote them, while also putting their own money to work. Along with an assist from an aligned and neutralized stochastics, the interpretation is a move through this critical area that should help launch GME shares towards a test of $500. As this meme stock is also a very heavily shorted name with short interest of nearly 30%, it’s “game on! The market was red-hot in the first quarter with new deals recording an average 6.5% first-day jump.

With meme stocks on the move again, these are the next Reddit stocks to watch

Adding spice to the bullish brew is that Deutsche Bank recently predicted a 25% upside for GE’s stock from current levels. Aside from this recommendation, GE has been improving its balance sheet as well as improving its internal efficiency to lift its overall return on equity for investors. It’s developments like these that make GE stock one of those meme stocks to consider.

It’s big-time theatre at the intersection of Main and Wall Street these days. I’m talking about those trending meme stocks which have become an unequivocally larger deal in 2021. But with the celebrity status comes a volatile battleground between bulls and bears that’s not always so clear-cut. Today, let’s look at the price charts of three meme stocks to buy without turning investors into pigs ripe for slaughter.

Despite a small revival in September with the successful debut of ARM Holdings, the Softbank-backed chip designer, many investors are not pouring back into the IPO market like they had done in 2021. They are more cautious and selective, favoring quality companies with strong fundamentals, proven business models, and positive cash flows. The word “meme,” from the ancient Greek word “mimema” — meaning imitation — is used to describe information that is imitated and often spread via pop culture references on social media. Thus, a meme stock is a shared investing idea imitated by other investors. 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.

As my InvestorPlace colleague David Moadel recently argued, success with its line of THC-infused investors could have TLRY stock investors soon seeing green. There’s still plenty in its corner to help spark up a recovery. The company beat analyst expectations in its Q earnings report, equity in forex and the stock has tripled in 2023. Roaring Kitty’s real name is Keith Gill who was also on Reddit as u/deepF…Value and active on the subreddit r/wallstreetbets. Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader.

Popular investor Chamath Palihapitiya said in October on his podcast “All-In with Chamath, Jason, Sacks & Friedberg” that Digital World Acquisition is “an exchange-traded NFT of Donald Trump.” SPACs raise capital in an initial public offering and use the cash to merge with a private company and take it public, usually within two years. Performance varies for other stocks popular on Reddit message boards. Clover Health and Bed Bath & Beyond are down roughly 75% and 13%, respectively. WallStreetBets mentions for both peaked on Jan. 28 at about 267,000 for GameStop and 47,000 for AMC, but typical days for each over the past few months see hundreds, not thousands, of mentions.

Uber doesn’t have parabolic potential due to its high market cap and low short interest, but the company’s prospects are looking up heading into the end of 2023. On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the Publishing Guidelines. In its most recent quarterly result, GME stock reported a narrower loss than anticipated and provided an optimistic forward guidance.

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