A roundabout way of investing in meme stocks would be to go after the relatively new Roundhill MEME ETF. However, you should remain cautious even if you choose this path as this particular fund had a very rough start and has a very uncertain future. Bitcoin certainly isn’t memey like many of the altcoins out there, but it’s proponents on social media often post edited pictures of them with glowing “laser eyes” that represent the sheer power of the first crypto currency. This meme is not coincidental considering Bitcoin is a symbol of fighting the financial powers that be for many. We still have to see how good or bad the influence of meme stocks will be for the market, but it is rather apparent they will have to be taken into account when investing in the years to come. His plea truly picked up boosting GME stocks from $5 to $20 by the end of 2020 and skyrocketed it to almost $350 in late January of 2021.
With the project having a market cap of $300 million, we could see a return to over $1 billion as more people rally behind this unique project while PNUT shows strong staying power among the sea of meme coins that emerge daily. Dogwifhat is a community-driven meme coin that capitalizes on humor and community involvement to build value. Unlike many meme coins that fade after the initial hype, Dogwifhat has maintained a consistent presence by fostering a loyal community and releasing timely updates.
The 3 Best Meme Stocks to Buy in May 2024
Whether as a result of stock purchases or options bets, meme stocks have rallied impressively on heavy volumes over the past year. The GameStop saga was a combination of bored and nostalgic retail investors, massive short interest, pandemic-related stimulus money and a social media community going viral. The conditions required to create another substantial short squeeze like that may never materialize again, but it certainly isn’t the end of short squeezes (or anger at hedge funds). In January, everyday traders teamed up on the subreddit r/WallStreetBets to send GameStop’s stock price soaring, sticking it to hedge funds who had bet against the video game retailer due to its layoffs and dwindling sales. Then in early June, investors became fascinated with AMC as the movie theater chain — which warned of a potential bankruptcy less than a year ago — saw its stock nearly double in just one day. Shortly after, Blackberry began surging as the Reddit crowd turned their attention to the tech company.
Risks And Rewards Of Investing In Meme Stocks
- This was picked up by The Roaring Kitty of r/wallstreet bets who convincingly argued for a short-squeeze in video format.
- And remember that a meme stock is a short term trade, not a good investment for the long run.
- Until that point, they are only driven by the current increase in popularity, and potential panic this might cause among the short-sellers.
- All this seems like very bearish news, so its short interest rose to 27%.
“Meme stocks appeal to our fear of missing out (FOMO) and our desire to get rich quickly. So if you sell the stock you borrowed for $10, and then its price rises to $50, you’re responsible for those shares, meaning you’re on the hook for that $40 you owe the broker. If you want to invest in meme stocks, or any stocks for that matter, you’ll need to open a brokerage account first. A member of the hot 2020 IPO stock class, Palantir quickly gained a large investor following after making its public debut. The company builds enterprise big data and AI software that helps organizations update their operations for a digital era.
Secondly, it is hard to decisively claim that Tesla isn’t overpriced as some economists argue that we are facing an everything bubble, while others point that the bubble precisely is in tech and crypto. An important feature of meme stocks, as far as the mainstream definition is concerned, is that they tend to be overvalued. We can’t really argue this notion when it comes to GME, AMC, and similar crazes, but don’t believe it is definitively true when we look at the broader relation between memes and the market. Don’t worry, we’ll be talking aplenty about the modern mainstream meme stocks, but we’ll first have to delve a bit more deeply into what memes actually are. A meme stock is widely considered to be a stock of a company that has gained significant traction with one internet community or another. The origins of the official meme stocks can be traced down to the summer of 2020 when people were becoming increasingly bored by the restrictions imposed due to the COVID-19 pandemic.
Given that high-profile meme coin launches like OFFICIAL TRUMP will most likely happen again, the demand for fast and frictionless trading will only grow, and Solaxy offers exactly that. The project’s core innovation is a self-evolving AI agent that provides real-time insights and market analysis, but also creates its own narratives within various communities. To achieve that, the AI continuously interacts with crypto communities on X, shaping discussions and analyzing blockchain data. On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Open interest climbed by 20% in a single day to $702.09 million, showing high trader interest in the meme coin.
Robinhood Inc.: The Original Meme Stock Pioneer
This is an approach another meme stock took to great effect, and we’ll talk about that case as well just a little bit down the line. We feel that this is likely to be a bittersweet start to an entirely new era. These crowd-backed stock rallies inherently increase volatility, but could ultimately give the investors the power to vote with their money—boost companies they like, and harm those they do not. The self-titled apes of r/wallstreetbets have caused an uproar and even managed to kill some big-name hedge funds while targeting the Mother Of All Short-Squeezes (MOASS). Allogenic CAR-T is also called “off-the-shelf,” where other T-cells are donated rather than a patient’s, allowing for speedier and more consistent treatment. It’s also beneficial for cancer patients with low or unhealthy T-cells.
OG Meme Stocks Still Below 2021 Highs
Like GameStop, NOK stock jumped by an incredible amount in early 2021. Many retailer investors became interested in Nokia because of the high number of its shares that were being sold short by institutional investors and hedge funds. 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.
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On the other hand, while they are certainly big news now, there are no guarantees they will truly remain. What is certain to remain, however, are the underlying mechanisms of marketing, psychology, and public opinion molding we have discussed here. Furthermore, even if the modern meme stocks’ stay proves to be relatively short, they are sure to have already impacted investing in ways we probably aren’t even consciously considering yet. They should all be viewed as bubbles until proven otherwise—until the craze is over, the prices are stabilized, and other indicators of technical and fundamental analysis tell you they are realistic. Until that point, they are only driven by the current increase in popularity, and potential panic this might cause among the short-sellers.
Click here for a full list of our partners and an in-depth explanation on how we get paid. Meme stocks rely on the fear of missing out (FOMO) and short-squeezes to accelerate and maintain their altitude. FOMO drives the pain of a missed meme stock, making you anxious to jump FX choice Review on the next big meme stock. Despite its partnerships with well-known fast and casual restaurants, sentiment turned sour as the competition crawled out of the woodwork, diluting its market share.
GameStop has been one of the biggest winners of the frenzy this week, along with AMC Entertainment (AMC). Those and other meme stocks have shot higher following the online return Sunday of one of the prominent drivers of the earlier meme craze. The stock market is in the thick of another meme stock frenzy, sparked by Sunday night’s online return of one of the key figures of the 2020 and 2021 craze that sent GameStop (GME) shares to record highs.
It has a unanimous “buy” rating from all 10 analysts covering its shares. Sites that track investor sentiment also rate Bowlero highly in the short-term. Meme investors have routinely purchased spy puts over the last few years as a way to potentially profit from a market crash. Looking at many of the other such altcoins, we think it would be fair to say that most of them are looking to become meme coins as Forex best pairs to trade their only chance for prominence. Indeed, this possibility is their best bet as there are over 4,000 cryptocurrencies on the market at the time of writing. Elon Musk’s Tesla is a controversial topic when it comes to meme stocks.
Investors looking at QUBT should be prepared for both significant risks and potentially outsized rewards. Additionally, the company’s focus on AI-driven solutions for defense and enterprise markets provides a strong narrative for speculative investors looking to capitalize on the sector’s explosive growth. With AI remaining a hot topic in 2025, BBAI has the volatility and buzz to attract meme stock enthusiasts. Part of the motivation behind the online support for certain meme stocks comes from hedge funds’ short positions in those companies. Meme stocks lure investors with the promise of potentially big returns in little time.
The company, or the “consultants,” also sells cosmetics and travel container products. The company has seen declining sales and has pushed back its 10-K report, and received a non-compliance listing notice from the New York Stock Exchange on June 7, 2023. All this seems like very bearish news, so its short interest rose to 27%. On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
- This model has proven resilient, especially during periods of heightened market activity, positioning Robinhood to thrive as meme stocks and speculative investments gain renewed interest in 2025.
- 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.
- Memes have left a big impact on the 2010s, and meme stocks are likely to be very influential in the 2020s now that they have fully entered the main stage—and they have the potential to be real game-changers.
- Solana (SOL) has gone up by 19.5% in the past 30 days as the market’s overall recovery, along with the outstanding performance of a handful of meme coins, has ignited…
- The company also sells kitchen utensils and products from cutting boards to measuring cups.
We also think saying that most NFTs are looking to become memes and thus gain visibility is fair. This is likely due to their digitalization process which appears to be working. While their reports for Q3 of 2021 have been fairly abysmal, they are different from 2020 as they seem to be a result of overspending in order to modernize, rather than whimpering death throes.
Because a surge in buying activity can send a stock price soaring, there are some benefits to owning meme stocks (and potential meme stocks before they rocket higher). I believe meme ameritrade forex broker stock investors should consider buying spy shares at the moment with a glass half full mentality. Memes have left a big impact on the 2010s, and meme stocks are likely to be very influential in the 2020s now that they have fully entered the main stage—and they have the potential to be real game-changers. The relative democratization of price-determination on the stock market is a huge deal alone, though it is at risk of being severely stifled by some future legislation.
A meme stock is a publicly listed company from any sector which gains traction due to an increased interest amongst retail traders on popular social media platforms like Reddit. These online communities partake in in-depth discussions speculating on the price performance of particular stocks. With the companies’ profits declining, a number of large hedge funds had taken up short positions on these companies, essentially betting that their business models would eventually fail. That said, it’s clear that certain stocks have gained a cult-like following on social media channels. The trading volume of these stocks has been huge, largely due to retail investors who are looking for quick wins.