What Is the Next Big Meme Stock to Buy? Our 3 Top Picks

As with other highly volatile investments (such as the related cryptocurrencies movement), there are drawbacks to betting on meme stocks. For those looking for the next big meme stock, there are certain stocks worth watching. Here are three top meme stocks I think are worthy of being kept on  watchs list right now, even for investors who don’t necessarily want to step into the fray now.

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 https://www.forexbox.info/stocks-investing/ their entertainment value as speculative playthings, much like casino games. Accordingly, for speculators looking for a top-tier meme stock on which to speculate, GameStop remains the king right now.

  1. Some unlucky soul bought GameStop shares at its all-time high of $483.
  2. Investing can be the most surefire path to becoming and remaining financially free.
  3. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation.
  4. Video game and accessories retailer GameStop is the perfect example of what can happen when the conditions are absolutely perfect for a short squeeze.

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. GameStop (GME) became a heavily shorted stock due to a decline in foot traffic at malls and dwindling revenues.

Meme Stocks and Short Selling

This suggests it would take more than three full days for short-sellers to exit their positions, should they choose to do so. Even with meme stocks, the old adage, “Don’t put all your eggs in one basket,” still rings true. The good news is that meme stocks come from all nooks and crannies of the stock market, so it’s possible to build a diversified portfolio of holdings that can catch a tailwind from various places.

Indeed, as these became recognized meme stocks, members of r/wallstreetbets and similar outlets began to acknowledge the humor (for the “lulz”) of seeing such legacy companies emerge from the ashes in the stock market. Unlike online pump-and-dump schemes aimed at defrauding unwitting investors, the promotion of meme stocks largely involves buying and holding with the above-mentioned strong hands even after the price spikes. That said, xrp price today xrp live marketcap chart and info 2020 the number of retail investors who are interested in Microsoft and other mega-cap stocks is likely to increase meaningfully. 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. By definition, investing in meme stocks is incredibly risky, and poorly-timed trades can lead to massive losses.

Just as important as finding the next hot meme stock is avoiding common trading mistakes. Meme stocks have been a boon to investors, day traders, and brokerage platforms but companies have also capitalized on the meme stock phenomenon. This raised more than $1.5 billion in the first quarter (Q1) from voracious meme stock buyers.

Under-$50 Stocks That Will Double Quicker Than the S&P 500

The company builds enterprise big data and AI software that helps organizations update their operations for a digital era. Palantir has concentrated exposure working for government entities, but it’s quickly working to expand further into the private sector. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. This company’s status as a 5G provider does give investors reason to be upbeat about its growth outlook. However, it was Nokia’s following on forums such as Reddit’s WallStreetBets which really galvanized many investors to pile into this name.

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

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. Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master’s in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses.

Memes gained increasing prevalence and relevance as the internet and social media grew. They allow people to rapidly spread humorous, interesting, or sarcastic videos, images, or posts to others around the world. The rapid and multiplicative effect of sharing such posts could make them go viral. One reason retail investors are bound to like Intercept is its volatility. Intercept’s beta is north of 1.5, which means that, on average, it moves more than 50% more than the broader market. For example, if the benchmark S&P 500 rises 1%, we would expect to see Intercept up more than 1.5%.

How to identify a good long-term meme stock

The action is typically driven by members of online forums like Reddit and social media users, who sometimes make and share memes to promote and build momentum around the stock’s rally. But stocks that https://www.forex-world.net/blog/guide-to-broker-dealer-registration/ meet the above criteria can be considered meme stocks without having a big online following. From there, the number of retail investors buying shares and call options snowballed, driving up the price.

Comparatively, operating expenses, including compensation, more than doubled, leading to a $7.39 million operating loss. However, simply writing off all meme stocks as too risky can be a mistake. For the right person, investing in the right meme stock for the right reasons can make a lot of sense. GameStop may have started the meme stock mania, but others have followed in its footsteps.

Leave a Reply