Investors are set to power a ‘meme-stock’ summer with names in the social media hyped frame including tech titans Tesla (TSLA) and Palantir (PLTR).
Claim 55% Off TipRanks
Forget margin or options. Here's how the pros trade TSLAMeme Stock Frenzy
Vanda Research, which tracks the trading of self-directed individual investors, said it has spotted renewed enthusiasm for meme stocks. These are stocks whose share price rockets as a result of social media buzz or speculative excitement rather than any traditional business fundamentals like sales or profits.
“As investors become less preoccupied with the Middle Eastern conflict and people can focus on what to do with their tax refunds, we’re starting to see some early indications of another meme-stock summer,” said Viraj Patel, global macro strategist at Vanda.
One example came this week with the huge rally in Allbirds (BIRD) stock after the previously sneakers- focused company said it was reinventing itself as an AI computing infrastructure firm to be known as NewBird AI. Its stock price has climbed around 359% in the last 5 days – see above.
Another favorite this week was social networking firm Myseum (MYSE), whose shares also surged after announcing its own AI pivot.
“We’ve seen this playbook before – retail stepping in aggressively when a ‘non-tech’ company pivots toward AI,” Vanda analysts said.
Big and Small Stocks
But it is not just smaller-sized firms in the meme-stock sights.
Patel added that there are indications that retail investors are once again aggressively buying long-standing favorite stocks, ranging from Tesla and Palantir Technologies to quantum computing firm IonQ (IONQ). “These are retail favorites; meme stocks that capture the imagination of the individual trader,” Patel said.
However, investors should be cautious because meme stocks struggle to keep hold of their gains over the longer term.
Beyond Meat (BYND), which had its own meme stock surge last year off the back of retail interest, has seen a huge drop of 71% in its share price in the last 12 months.
After every summer comes the autumn and then the winter…
What are the Best Meme Stocks to Buy Now?
We have rounded up the best Meme stocks to buy now using our TipRanks comparison tool. As can be seen below, Enovix (ENVX), has the best upside of 84.70%.
