Meme stocks are fashionable again, thanks in part to a collaboration between Sydney Sweeney and American Eagle (AEO). That news sent shares of AEO stock up on Thursday, as meme traders took note of the special event and used it as a catalyst to boost the shares higher.
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But it’s not just American Eagle that has joined the next generation of meme stocks. Others, such as Krispy Kreme (DNUT), Opendoor (OPEN), Kohl’s (KSS), and GoPro (GPRO), have also taken off lately. These rallies often come without news, instead being fueled by meme stock traders who seek out highly shorted stocks, low-priced shares, and other companies they believe are worth an investment.
What Does the Future Hold for the Newest Meme Stocks?
To best understand that, it’s important to study the history of meme stocks. Let’s dive into how the original meme stocks that kicked off the trend in early 2021 are doing today.
- GameStop (GME) stock has surged 2,291% over the last five years but is down 68.29% from its meme-powered high of $75 per share.
- AMC Entertainment (AMC) stock has fallen 89.84% over the last five years and is down 99.39% from its meme-frenzy high of $551.91 per share.
- BlackBerry (BB) stock has decreased 12.58% over the last five years and dropped 78.8% from its meme-fueled high of $18.92 per share.
- Bed Bath & Beyond stock is no longer traded after the company’s bankruptcy in April 2023. Its assets were acquired by Overstock.com, which rebranded as Beyond (BYON). The Bed Bath & Beyond brand still exists as an e-commerce platform under Beyond.
- Nokia (NOK) stock has gained 4.15% over the last five years but has slipped 29.7% from its meme-charged high of $6.29 per share.
With only two of the original meme stocks still up, and all of them significantly down from their meme-trading highs, it’s hard to recommend jumping into the latest meme stock frenzy.
What Does Wall Street Think of the Newest Meme Stocks?
Turning to the TipRanks stock comparison tool, traders can see Wall Street’s opinions on the latest meme stocks. American Eagle, Krispy Kreme, and Opendoor each have consensus Hold ratings, while Kohl’s and GoPro have Moderate Sell ratings. None of the next-generation meme stocks have upside potential.
