Meme Stock Investing Guide: How to Find the Next GameStop

However, I wouldn’t see this as a warning that after a strong year stock performance-wise, more muted gains lie ahead. Continued 5G success, plus a possible end to the chip shortage, are just two factors that could help propel the stock, reasonably priced at 15.1x earnings, to much higher levels in the coming year. Today, GME stock is down by over 80% compared to its peak in 2021. However, a new meme coin seeks to relive the historic 2021 meme stock craze.

And if the stock price rises to $500, you’ll owe that difference. Like I discussed back in November, its expansion efforts in Canada and Europe could do just that. As my InvestorPlace colleague David Moadel recently argued, success with its line of THC-infused investors could have TLRY stock investors soon seeing green. 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.

The more irrational it is, the more likely short-sellers get involved and the more potential it has to short squeeze. A look at the first meme stock helps to provide an idea of what can transform a stock into a meme stock. GameStop was a dying video game retailer, one of the last ones standing. 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.

  1. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance.
  2. Here are five to do some more digging on (beyond arguably the two most famous meme stocks — video game retailer GameStop (GME 1.49%) and the world’s largest movie theater chain AMC (AMC 3.16%).
  3. Yet even as RIVN has positive news and favorable market conditions on its side, as Louis Navellier and the InvestorPlace Research Staff argued earlier this month, these advantages may not last.
  4. This is due to well-received quarterly results, increased production guidance, and (more recently), news that bodes well for the future of the company’s electric van business.
  5. Meme stocks are scorching hot right now, along with, well, just about every type of risk asset.

Stock manipulation on Reddit surged in May, Rehl said, adding that it took time for spammers and bots to learn the intricacies of investing subreddits’ rules and find loopholes. Reddit’s WallStreetBets page bans users that post “false or misleading information” and promoters of “any other worthless securities that are susceptible to scams or pump & dump schemes.” The challenge is guessing how long this trend will last, as investors are effectively betting on how much of a problem monkeypox will be for the world.

It is a global leader in some of the high-growth industries like clean energy and electric vehicles, so it has excellent long-term potential. Also, it has a strong brand and is one of the most innovative companies in the world. However, because their performance is connected to a trend, which could fade away, investors need to be cautious with meme stocks. With this in mind, it’s very possible that high uncertainty, high volatility, and high levels of fear could again return to the markets, hitting meme stocks, including these seven, especially hard.

This is what we can expect to see from meme stocks in 2024

These CARs are multiplied in heavy quantities in a lab and re-infused into the patient’s body. The CARs can identify specific antigens on the surface of cancer cells to target them for termination. CAR-T treats lymphoma and leukemia successfully but can cause cytokine release syndrome (CRS).

Deutsche Just Raised Its Price Target on SOFI Stock

However, that victory was short-lived as meme stocks deflated as quickly as they inflated during the bear market 2022. As the smoke clears and the stock market recovers in 2023, retail traders wonder what the next meme stock will be that spawns another meme stock mania. GameStop’s stock price then surged due to a massive short squeeze affecting some major hedge funds that were short the stock and forced to sell to cut losses. As mentioned above, the stock price went from less than $5 a share to $325 (by January 2021) in less than six months.

Terms connected to meme stocks

While no longer much of a meme favorite, it doesn’t need association with this fading trend anymore. As it keeps on proving its skeptics wrong, expect things to continue to look up for Nokia and Nokia stock. As I discussed back in October, prospects look bright in terms of steel demand in 2022. And third, they need to limit themselves to a small part of their portfolio. Second, they still need to do their homework to try and understand when to get in and when to get out—at a minimum—rather than just trusting it will keep going up.

AMC Entertainment Holdings Inc. (NYSE: AMC)

In this article, we will review six stocks that could be the next big meme stocks leading the resurgence of the meme stock craze. 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. Some meme stocks did not fare as well as others, even with the occasional short squeeze. Other meme names have included, among others, Bed Bath & Beyond Inc. (BBBY), Koss Corp. (KOSS), Vinco Ventures (BBIG),, and even the meme stock enabler Robinhood Markets Inc. (HOOD).

Carvana shares have already been in a short squeeze as shares rose as high as $57.19 and have rallied over 1,000% in 2023. The short squeeze caused short interest to fall back to 21%, but anything above 20% is still considered a high short interest. Meme stocks, however, didn’t truly emerge until the year 2020 via the Reddit forum r/wallstreetbets. 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.

Missed BBBY? 10 ‘Meme Stocks’ Are Next Gold Mines, Analysts Say

It’s called the GameStop (GME-USD) token and bears no actual affiliation with the company, with the symbol $GME and is minted on Solana (SOL-USD). Roundhill Meme ETF is down more than 40% this year, while VanEck Social is off 30%. VanEck Social doesn’t own BBBY stock either, but does have positions in some larger firms like volume indicator mt4 Apple (AAPL). Stock prices can rise rapidly for a few weeks as the company becomes a trend and then drop significantly after. The famous chipmaker NVIDIA was one of the companies that became a topic of conversation among investors on Reddit, especially after its excellent financial performance in the third quarter of 2021.

What makes this meme stock stand out among the crowd is that it has a lot of momentum behind it and operates in a sector that could be poised for growth. After all, the electric vehicle industry could be worth $725 billion by 2026, growing over 25% from 2021. Another meme stock on the rise in 2022 is Bed Bath & Beyond, a holdings company that specializes in anything related to the home from furnishing to food. First, it offers Medicare, a healthcare segment that could grow by 7.6% from 2019 to 2028 as more people are enrolled.

Memes began to take the form of humorous social media posts and viral videos with the advent of the internet. Meme stocks are so-named because ideas about them spread rapidly on social media and web forums. Meme stocks also see communities built around them that promote the hype and elaborate on the original meme, inventing specific terms and symbols to accompany the stock.