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. Palantir has concentrated exposure working for government entities, but it’s quickly working to expand further into the private sector. Rivian is currently in the midst of “production hell,” a phrase coined by Tesla CEO Elon Musk when his company was trying to ramp up factory production to stem cash losses.
- Yes, as long as social media and communities like WallStreetBets exist, there will be companies that fit the mold of a meme stock.
- ATER stock may very well be the riskiest of these meme selections in our estimation.
- However, this seems unlikely in the case of Altria, which hasn’t reduced its dividend since 1970.
- 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.
So while meme stocks are coming back, they’re not the same types of companies and many still face tough odds. Interestingly, though, this new group of meme stocks is stealing the attention from the old favorites. AMC Entertainment (AMC), on pace to lose nearly $500 million in 2023, is only the fourth best stock in the meme ETF, up 43% this year. And GameStop (GME), following a 50% plunge in 2022, is up 20% this year, landing it tenth.
And it’s also time to take a look at how these stocks may fare in 2022. If you’re thinking about buying and selling meme stocks, keep in mind that you will probably have to pay taxes on your profits. Capital gains tax rates are especially high on stocks you held for less than a year. The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.
SoFi Technologies (SOFI)
In other words, this is good news for current and potential investors of TSLA stock. Moreover, as we look to close out a gloomy month for the market, these are the best meme stocks which can produce sizzling profits for buyers in July. Risking money in speculative investments can be exhilarating, but it is rarely the path to long-term wealth. Investing in low-cost index funds and through tax-advantaged retirement accounts such as IRAs has a higher likelihood of success than relying on risky investing strategies. As with other highly volatile investments (such as the related cryptocurrencies movement), there are drawbacks to betting on meme stocks. However, simply writing off all meme stocks as too risky can be a mistake.
Rivian has had hiccups getting its R1T electric truck out the door, but it’s making progress. On the date of publication, Josh Enomoto 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. But the meme-stock resurgence should be raising red flags for even the most bullish of strategists.
Yes, it’s the third straight quarter of declining revenue for the largest publicly-traded company in the world. Tilray may be a situation where going against the grain could pay off. U.S. legalization may not be a big catalyst for it anymore, much less a likely one. Ones that could send the stock (at around $7.50 per share today) back to much higher prices. And with the company losing money prior to the pandemic in its prior business model, this is still a speculative bet.
Meme Stocks: Tilray (TLRY)
This allows veterinarians to run diagnostic tests in their offices that they currently would have to send to an outside lab at additional time and expense. The company has launched a Customer Appreciation Program that will seed the product in veterinarian offices at no cost. The catalyst is that the offices make an agreement to buy the assays that are required to run the diagnostic tests directly from Zomedica. BlackBerry may be best known to some people as the manufacturer of the mobile phone of the same name. And while some people may long to have their BlackBerry, the larger story of the company had to do with the safety and security that was built into the product.
Despite news of production issues arising from COVID-19 lockdowns in China, Apple’s positioning remains incredible. Moreover, it remains the largest holding in Warren Buffet’s illustrious portfolio. Additionally, with AAPL stock down over 20% from all-time highs, it’s trading at a hefty discount for value investors. Therefore, all signs indicate this is an excellent time to invest in AAPL stock, as investors benefit from the bear market prices. Revenue for 2021 is expected to be about a billion dollars shy of where it was in 2019.
Meme Stocks: Meant for Short-Term Trading, not Long-Term Investing
Anyone with a Facebook or Twitter account has encountered a meme, like the Drake Hotline Bling image or the two “Always Has Been” astronauts. Usually, people use memes repeatedly with different quotes or connotations, which enables them to spread virally over social media. If you’re unsure of which companies those are, you can always take the guesswork out of investing with an Investment Kit from Q.ai. To learn more, check out the Q.ai Short Squeeze Kit for investments in this unique category of stocks. The Short Squeeze Kit gathers historical and technical financial intel on thousands of U.S. equities, including relevant sentiment information. So it may be interesting to look at 10 meme stocks that have been part of the this movement in 2021.
- On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article.
- This is an invaluable endorsement that solidifies its growth potential and gives its shareholders greater assurance.
- As 18% of SPWR shares are currently held short, investors might see a short squeeze in the coming months.
One of the major investment trends observed in late 2020 and early 2021 was the surge in retail trading. Traditionally, investors look at a company’s financials to see how the business is performing to determine if a company is worth investing money in. Nowadays, if you’re into the meme stock movement, it almost feels like you can just check Reddit or social media to see what company has buzz.
Since we can’t ignore the impact of meme stocks, we must try to make sense of what’s happening. During the third quarter, SoFi added an impressive 635,000 new products, a 69% increase from the previous year. Moreover, its revenues shot up by a tremendous 56% from the prior-year period, with 61% growth in membership numbers. This aggressive approach shows that SoFi is fully committed to comprehensively meeting its customer’s needs, making the platform a valuable asset for its customers and investors. Also, with the firm winning a bank charter recently, it’s expected to gain immensely in terms of operating margin growth down the road.
Top 10 Meme Stocks of 2021 and How They’ll Fare in 2022
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. Management anticipates breaking even in the third quarter and delivering $40 million to $60 million in profits for fiscal 2021. As 18% features of commercial paper of SPWR shares are currently held short, investors might see a short squeeze in the coming months. SPWR stock currently trades for about $23 and is down 11% so far this year. The shares exchange hands at 37 times forward earnings and 3.6 times trailing sales. In January, investors saw BYND stock rally more than 50% over a three-day period.
If it does, you can repurchase the shares at the lower price, return them to the brokerage and keep the difference as profit. While the broader financial view presents challenges – particularly in the balance sheet – THC trades at only 11.26x forward earnings. Shares also trade at 8.05X free cash flow, below the sector median of 19.98x. With the rise of electric vehicle integration, RIO is one of the meme stocks that make sense over the long run. While the original social-media-inspired speculative ideas may be stumbling around the ring, intrepid investors with some loose pocket change may be able to acquire undervalued meme stocks.
Even so, while it’s gone from $10 to $50, and back to $10 and below, now may be a great time to initiate a position. That said, don’t take this to mean all meme plays are “avoid-at-all-cost” situations. https://1investing.in/ Among the scores of stocks once boosted by the trend, there are plenty that could buck the latest trend, and move higher. But July looks to offer a promising revival for this turnaround play.
The result is that there is less speculative behavior overall in meme stocks. This comes atop the big declines it endured earlier this year, after its short-lived experience as a meme stock. In all, the TLRY stock price has fallen nearly 89% since hitting its 52-week high on Feb. 10. It may seem like it’s best to follow the meme crowd’s lead, and forget about this stock completely. However, I wouldn’t see this as a warning that after a strong year stock performance-wise, more muted gains lie ahead.
These days it is less about influencing heavily shorted stocks and much more about sharing investing thoughts through social media. The company maintains a high payout ratio, but it’s a strategy meant to keep investors engaged with the company as it pivots. That’s why the company has pledged to target mid-single-digit dividend increases through 2030. Altria remains one of the safest high-yield stocks available to investors right now. Indeed, Carvana’s progress toward that goal is very evident in its recent earnings results.
best-performing meme stocks
Further, Draftkings now anticipates that the company will now record $190 million more in midpoint revenues than it had previously expected. On the date of publication, Thomas Niel did not have (either directly or indirectly) any positions in the securities mentioned in this article. On the date of publication, Thomas Niel did not have (either directly or indirectly) any positions in the securities mentioned in this article. While no longer much of a meme favorite, it doesn’t need association with this fading trend anymore.
The stock’s 33% short interest has made it an attractive target for a Reddit-driven short squeeze. Those early meme pioneers, who often found their next meme stock on Reddit, caught the market completely by surprise and were wildly successful as a result. Their first major target was the meme stock Gamestop, which skyrocketed more than 20x in value between 2020 and 2021, reaching a market cap of over $22 billion. The original meme stock, GameStop, is a brick-and-mortar video game retailer that many meme stock traders remember vividly from childhood. GameStop shares rose from around $20 to over $400 in a few weeks, kicking off the meme stock craze. Tesla CEO and social media provocateur Elon Musk is one of those people.
We realize how tempting it is to risk money on a meme stock when your social media feeds are suddenly flooded with posts, reels and tweets about hot gains from the next big winner. However, remember that we can’t ignore the financial results of the companies we invest in. So while it’s exciting to chase a stock with plenty of buzz, you want to invest in financially sound companies that will be around and turning a profit for a long time. It’s almost impossible to make sense of the movements of the BBBY stock price since the meme stock movement began. This summer, the SEC even reached the point where they had to halt trading for BBBY. The stock was up 314% at a few points during the month before crashing back down to reality.
That could result in an earnings surprise when results are released on Aug. 22. Outside of its business shift, MO stock is also a dividend juggernaut. That’s a high-yield dividend, which generally equates to high risk and the potential for interrupted payments. However, this seems unlikely in the case of Altria, which hasn’t reduced its dividend since 1970. These strong results represent a big leap forward for the company, bringing it much closer to breakeven.