What Are Meme Stocks, and Are They Real Investments?

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They just revealed what they believe are the ten best stocks for investors to buy right now… That’s right — they think these 10 stocks are even better buys. Read our complete guide to risk-management to find out how to offset risk in volatile markets. Shares of BlackBerry climbed sharply, by almost 55% throughout May 2021. In the same month, the company announced a five-year partnership with the University of Waterloo to drive research and development and innovation in Canada. This could suggest exciting new projects from BlackBerry in the coming years, making it a stock to watch.

How to identify a good long-term meme stock

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. But unlike GameStop and most other meme stocks, AMC’s balance sheet is a train wreck. This is to say that other meme stocks have been able to raise significant capital during these rallies, and they’re now sitting on healthy net cash positions. AMC raised nearly all of its capital under less-than-ideal circumstances and has well over $4 billion in net debt that it probably doesn’t have a chance of paying back when it comes due in five years (or less). During the first quarter, the company’s net interest expenses on corporate borrowings more than doubled from the year-ago quarter.

The company’s ability to pivot from a brick-and-mortar to a digital model has yet to be determined. But at this point, loyal GameStop investors believe in the stock, and that may be enough to push the stock higher. It also helps that a major Wall Street investment bank, Stifel, started covering Gevo in late August and assigned it a $10 price target. That might prove to be a more sustainable form of support than the enthusiasm of meme stock traders.

AMC Entertainment (AMC)​​

Without their cult followings, meme stocks are not necessarily valuable assets. These online communities, such as the popular Reddit forum WallStreetBets, coordinate buying and selling efforts to influence stock prices. With enough online support, meme stocks can maintain elevated stock prices regardless of the underlying company’s worth. 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. More traditional investors decry the lack of business fundamentals and strong performance to justify sharp surges in stock price.

• Read about how to find high-yielding dividend stocks in the market.
• In the months ahead, subsequent developments could help it to bounce back, including updates on its user base expansion efforts.
• Only a small number of these have been approved for trading so far, but do include some meme stocks like Tesla and NVIDIA.
• Despite a sell-off Friday and a 40% downturn this month, the tech support and anti-spyware company has soared 950% this year.

The top 25 such firms are included in the portfolio, which is re-examined and rebalanced twice a month. Other examples of potential meme stocks whose share prices have risen over the past year include Sundial Growers, Clean Energy Fuels Corp, Palantir Technologies, Tesla and Clover Health Investments. All are available on our online platform, so open a trading account to https://day-trading.info/ get started. Although Bed Bath & Beyond is proving to be a trending meme stock with a rising share price, CEO Mark Tritton does not believe that stock market activity will have an effect on the company’s operations. He also hasn’t emphasised a preference for long-term investors or short-term retail traders, so this could be a stock to watch for both types of traders.

Best Stocks Of 2021: Meme Stocks, Biotechs Highlight Broad Sector Strength

You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. While an ETF such as MEME may be less risky than holding one singular stock, it’s still made up of high-risk investments that could just as easily plummet as skyrocket. Our partners cannot pay us to guarantee favorable reviews of their products or services.

• Investors should exercise extreme caution with such volatile shares, and those with a low risk tolerance should possibly stay away.
• Another meme stock making the 100 best stocks of 2021 list is Roblox (RBLX), which went public in March.
• So it may be interesting to look at 10 meme stocks that have been part of the this movement in 2021.
• Throughout May 2021, the company’s share price jumped by 570% to reach a peak closing price of $63.97.
• When online investors understood the short positions against GameStop, people took it on as a Robin Hood-like adventure (often using the trading app Robinhood to do so).

If Palantir has proved that the markets have an appetite for right-leaning, anti-liberal bias, DWAC stock should do extremely well. Truth Social has the potential to be something of a revolution in my mind. The fact that share prices bounced back so quickly indicates the market believes this will be enough for the gaming company to capitalize on greater growth from the e-sports, gaming gear and content boom. But this pick of the meme stocks still grew its revenue base by 21.6% through the first three quarters of 2021 compared to 2020. That’s why it’s part of this meme stock list, because retail investors have figured out a formula and they’re making it work. The company’s revenue and earnings are still down from pre-pandemic levels and yet the stock price is above pre-pandemic levels.

Why Microsoft Stock Is a No-Brainer Buy if Shares Fall Further

The second half of the year will show whether the up move will continue. Its telemedicine platform enables virtual access to medical treatment from licensed providers. Prescription medications and over-the-counter products are also delivered directly to patients homes. Anand Chokkavelu, CFA owns shares of Clover Health Investments, Opendoor Technologies Inc., SoFi Technologies, Inc., and Virgin Galactic Holdings Inc. The Motley Fool owns shares of and recommends Opendoor Technologies Inc., SoFi Technologies, Inc., and Virgin Galactic Holdings Inc.

Some experts believe that the shortage problem will fade by the end of this year for most products. However, it’s also fair to point out that this circumstance is difficult to predict — just look at how many experts weighed in on the Covid-19 crisis. A member of the hot 2020 IPO stock class, Palantir quickly gained a large investor following after making its public debut.

“You have to figure if they partner with a firm of Apple’s stature, it would greatly increase their potential revenues and then consequently their valuation,” she said. 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. There’s still plenty in its corner to help spark up a recovery. Back in the summer, PUBM stock looked like a possible short-squeeze play.

As of the latest read (Aug. 13), the iconic American automaker features a short percentage of float of only 1.6%. Meme stocks lure investors with the promise of potentially https://investmentsanalysis.info/ big returns in little time. Bear in mind that meme stocks can be especially volatile, so plan accordingly and be prepared to continue investing more over time.

Meme Stocks: What They Are and 5 Top Stocks for June 2023

That said, don’t take this to mean all meme plays are “avoid-at-all-cost” situations. Among the scores of stocks once boosted by the trend, there are plenty that could buck the latest trend, and move higher. This past March, BlackBerry sold 32,000 patents related to its former mobile devices, messaging, and wireless networking business for $900 million as the company seeks to raise cash. Lastly, movie theater chain AMC Entertainment (AMC 0.91%) has made its fair share of millionaires in 2021.

Avis Budget Group (CAR) pulled into third place for 2021 with a run of 456%. Shares surged as much as 218% on Nov. 2, after the rental car firm’s blockbuster earnings https://forexhistory.info/ report. Short sellers covering their positions also may have helped fuel the stock surge, as chatter about Avis spiked on stock-trading Reddit groups that day.

Yes, they are riskier than many other conservative investments. But they do all have a lot to make them fundamentally attractive — whether in terms of real catalysts or financially quantifiable achievements. And as the pandemic remains in the public consciousness, rapid testing will remain a viable option, particularly as a significant segment of the population remains unvaccinated. However, it’s fair to question how much revenue the company can generate from this model. The company was continuing to lose money so it’s certainly not enough to be profitable. I’ve followed Zomedica for most of 2021 and thought it was miscast as a meme stock.

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. In 2020, biotechs and stay-at-home stocks such as software and online retailers dominated the list due to the coronavirus lockdown and search for vaccines and treatments. With the internet, chat rooms and discussion boards devoted to investing and promoting stocks also arose.