While the number of NOK shares sold short has fallen substantially, many meme-stock investors are still interested in the firm . If many institutional investors short Nokia again, NOK will certainly be a stock to keep an eye on. 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 stock investing
Since there are no approved treatments for NASH, this gives Intercept an even better case for approval. The issue is that it could be a while before additional clinical data is available for the company to make another run at FDA approval.
GameStop (GME)
Yet what really stands out is its muted average daily volume of 1.36 million shares. It would take almost six full days for short-sellers to cover their positions, based on this three-month volume data. If you own a stock with these types of characteristics, it doesn’t mean that they will become part of the meme stock trade. However, it could mean those investments share features of a certain kind of trend trading, creating the potential for them to get caught up in irregular trading activity.
- Look at stats like volume, short interest and short-term moving averages to locate good meme stock candidates.
- While everyone wants to know, “What is the next meme stock to surge?” it’s important to know what happens to most meme stocks.
- Meme stocks should have social media buzz, a huge rising volume and a small float.
- His Reddit posts in particular for GameStop, which is widely considered the first meme stock, began attracting a small following of investors in the summer of 2020.
- For every trader that nailed the bottom of a stock, someone else sold at the worst possible time — and every time an investor sells at the peak, someone must have bought ahead of the crash.
Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. 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. And while this iteration of the meme stock craze lasts, you may want to brace for more volatility among these stocks. On November 22, 2022, Morgan Stanley analyst Adam Jonas warned that CVNA could be a $1 stock due to the deteriorating car market and high interest rates. GME eventually fell to a low of $61.54 (pre-split) on Jan. 6, 2023.
Meme stock frenzy reignites
In its first-quarter earnings report last week, AMC disclosed a net loss of $163.5 million as the theater chain works to recover from the large amounts of debt it took on to stay afloat during the pandemic. GameStop’s stock price has gained 179% over the past two sessions, though at $48.75 it’s still well below its record of more than $85 in January 2021. Fidelity is not recommending or endorsing this investment by making it available to its customers.
However, GameStop, AMC, and many other meme stocks weren’t able to sustain those levels for long and embarked on an extended retreat. Despite this week’s surge, they haven’t reclaimed their 2021 highs. The stocks mentioned are not necessarily holdings invested in by Fidelity.
Common characteristics of these select few stocks include sudden rallies and volatile price swings on unusually high trading volume. In any case, I’d certainly recommend considering buying MSFT stock now . I’ve been interested in the shares for some time, and I may pull the trigger on it soon.
This suggests it would take more than three full days for short-sellers to exit their positions, should they choose to do so. While not an all-encompassing description, retail investors from Reddit and other social media chatrooms have been banding together What is a breakout and seeking out stocks with high levels of short interest. Since a large percentage of short-sellers are institutional investors or hedge funds, the rise of the retail investor has taken on the feel of a David vs. Goliath battle.
And, as hard as it is, if you’re going to invest in meme stocks you’re going to need to be able to stomach volatility and be fine with losing out. If you sell some of your holding and the stock price jumps 100% the next day, you don’t want to beat yourself up. But keeping with the theme of meme stocks, Dave & Buster’s still isn’t out of the woods on an operating basis. Selling stock and taking on debt absolutely helped the company make it through the worst part of the pandemic. Then again, interest expenses totaled 5.6% of net sales in the first quarter, up from just 1.1% of total sales in the first quarter of 2019.
Critics have said the practice creates “false markets” and reflects how the market is broken. Small-time traders flipped the script on hedge funds by driving the price of the heavily shorted shares up, forcing the bears to close their positions by buying back borrowed shares, which perpetuated the cycle. Like GameStop, NOK stock jumped by an incredible amount in early 2021.
We believe everyone should be able to make financial decisions with confidence. “Over time, just like offense and defense, offense slowly learns what defense doing,” Rehl said, with the “defense” the team of subreddit moderators tasked with keeping forums clean. However, as a shareholder of Intercept I can also attest that there are justifiable reasons for people to be pessimistic.
The Commodities Futures Trading Commission is conducting a similar investigation regarding the prices of silver futures. However, they expressed doubt that the latest meme stock craze could reach 2021 levels in the days to come. “Do we think more retail traders can jump in on the trend in the coming days? Yes. Do we think this is a repeat of 2021? No, and the chances we reach that stage are low.” 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. To have a short interest over 100% means there are illegal naked shorts. The float was also relatively small, at just over 56 million shares.
The use of memes, which are tweaked images, videos, text, etc., is a central component of how the usually positive the repo market and our broken system reviews of these stocks are copied and spread across the internet. Hedge funds and experienced investors know these aren’t long-term stock picks, they’re a wave meant to be ridden and abandoned when volume dries up. One useful page is MarketBeat’s media sentiment tracker, which uses a language processing algorithm to measure positive or negative headlines regarding trending stocks.
The companies Reddit retail traders are focusing on have come to be known as meme stocks. That’s because they’re valued for their social media popularity, not their (often poor) operating performance. Specifically, these trade com reviewis trade.com a scam or legit broker retail traders are attempting to effect short squeezes in heavily short-sold stocks. This creates an event where short-sellers run for the exit, causing a rapidly rising stock to skyrocket higher as short-sellers buy to cover their position. Video game and accessories retailer GameStop is the perfect example of what can happen when the conditions are absolutely perfect for a short squeeze.