This is what we can expect to see from meme stocks in 2024

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. When done right, they can reward retail traders with handsome returns due to a spike in share prices while supporting businesses that could need a major financial push. Tesla has become a favorite among retail traders for many reasons, some of which have nothing to do with its earnings. For example, in early December 2021, its price in the stock exchanges rose 10% over the news that it had a new significant investor.

To search for trending meme stocks, be sure to visit MarketBeat’s Meme Stock list to compare companies based on figures like share price, short interest, social media engagement, market cap and volume. And remember that a meme stock is a short term trade, not a good investment for the long run. Video game retailer GameStop is recognized as the first meme stock. Simply put, meme stocks skyrocket in price in a short period (often hours or days) because of a sudden surge in interest online or on social media and subsequent buying among small individual investors.

  1. The first telltale sign of meme stock manipulation are sudden spikes in posts about a stock that disappear as quickly as they come, Rehl said.
  2. Another common feature of meme stocks is high short interest, which means many other investors are betting the stock will fail.
  3. 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.
  4. On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
  5. Even if the data allegation brouhaha finally goes away, SAVA stock will likely experience another massive drop, if the FDA rejects Simulfilam for FDA approval.

However, a number of these are not blue-chip stocks, like Facebook, which could indicate financial instability, vulnerability to fluctuations, and unclear long-term potential. Traders need to monitor company data closely to know when to start selling these assets to enjoy profits or minimize losses. For the year, Blink has reaffirmed its revenue guidance of $100 to $110 million. If the coming quarter results reaffirm this target, BLNK stock is likely to surge. In any case, I’d certainly recommend considering buying MSFT stock now .

What Are the Next Meme Stocks?

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. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem. On the date of publication, Dmytro Spilka did not hold (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 Publishing Guidelines. © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.

Private Companies

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. Investing in a single stock usually carries more risk than investing the same amount of money in several different stocks. Diversification across multiple investments helps buoy your portfolio in case one investment sinks. Too much of the bull case hinges on its relatively lower valuation.

The trading volume of these stocks has been huge, largely due to retail investors who are looking for quick wins. Whether as a result of stock purchases or options bets, meme stocks have rallied impressively  on heavy volumes over the past year. The YouTube persona Roaring Kitty posted a future viral video laying out the case for why shares of brick-and-mortar video game retailer GameStop Corp. (GME) could soar from $5 to $50 per share in August 2020. 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.

Forming the backdrop to the exceptional circumstances of GameStop was a cryptocurrency rally that ultimately saw Bitcoin (BTC-USD) reach an all-time high value of $69,000. 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 on the next big meme stock. It connects borrowers with lenders, including more than 60 banks and credit unions, to find the right match. The company claims that deriving a credit score is more accurate, reduces lenders’ default risk, and provides borrowers with faster and more personalized loans.

Meme Stocks and Short Selling

However, it was Nokia’s following on forums such as Reddit’s WallStreetBets which really galvanized many investors to pile into this name. The FDA approved Tpoxx to treat smallpox back in 2018, and so far the main reason for countries to buy it has been to have it on hand in the case of bioterrorism involving that disease. But the treatment is effective against monkeypox as well, and cases have been rising, accelerating demand for Tpoxx. Retail investors have been buying up the stock, hoping to cash in on stronger sales numbers. Conversations on Reddit about highly manipulated stocks tend to evaporate quickly and seldom repeat, but several meme stocks have loyal, fervent fanbases. But lesser-known investing subreddits can be plagued by manipulators like spammers and bots.

Clover Health Investments

Stocktwits, a social platform for investors and traders, told MarketWatch that it has seen a dedicated core audience of retail investors stick with the likes of AMC and GameStop. 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. While it is possible to make money with meme stocks, it is an extremely risky venture. Meme stock investing relies on trying to time the market, which humans, even those professionally trained, are notoriously bad at.

The eye-popping gains have inspired legions of hopeful successors to the original meme stocks, and sifting through the noise of online stock manipulation has never been harder. 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. Short selling is when somebody sells shares that they do not own, hoping to buy them back at a lower price. That seller must borrow shares from somebody who is long the stock in order to sell them. As more and more shares are sold short in this way, there are fewer shares left available to borrow.

Danish biotech company Bavarian Nordic does have a vaccine, Jynneos, that the FDA has cleared for Emergency Use Authorization in high-risk individuals. In the meantime, as case numbers continue to rise, people will need a treatment like Tpoxx. “I made some money off of GameStop, and I said, ‘Hey, this is pretty cool, I want to do more of this,'” Rehl told Insider. It’s also possible that small-cap biotech stock Intercept Pharmaceuticals (ICPT) becomes the next Reddit meme stock.

Here is a list of six stocks that may usher in the next meme stock frenzy or just short squeeze by themselves. While everyone wants to know, “What is the next meme stock to surge?” it’s important to know what happens to most meme stocks. 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.

That’s fantastic news for AMC, which hasn’t yet surpassed 2019 levels of revenue in any quarter since the outbreak, despite being on the mend. While its value in the stock market had already gone down, AMC appears to be in a much better position to remain profitable for 2022 and beyond. On the date of publication, Faisal Humayun did not hold (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 Publishing Guidelines. As the company’s mining activity accelerates, digital assets held on its balance sheet will swell.

New partnerships, such as the one announced recently with Manasquan Bank, could also enable Bakkt Holdings to move in the right direction once again. If you’re bullish crypto will make a comeback next year, consider this stock another way to play it. September’s GTC from Nvidia is probably going to be a major thing.

Named after the virality of internet memes found on social media, these stocks saw online communities form around them to boost and hype their prospects, even though meme company fundamentals remained questionable. Even after the meme stock surge and bust, speculators are always searching for the next meme stock. trading forex beginners guide Top meme stocks have certain requirements to qualify as potential meme stocks. Their fundamentals should be pretty negative, which draws in bears and short sellers who expect the stock price to fall lower. Logically, this makes sense since the fundamentals usually determine a company’s underlying stock price.

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