Today we're going to talk about stock memes. This term is quite new in the markets. What it is? These are stocks that have shown significant gains not because of effective management, but rather because of the hype on social media and online forums. A characteristic feature of a meme stock is a large number of short positions on them in the market.
For example, in January 2020, there was a jump in the shares of GameStop Corp by 2500%. This came after intraday traders saw the stock's short selling volume reach record levels.
According to S3 Partners, if investors are interested in this stock format, then they can choose any of the 230 companies, the percentage of short sales for which is equal to or slightly higher than 15%, and the market capitalization exceeds $100 million. around 80%, and averaged an increase of about 18%, while the S&P 500 showed an increase of 2.3%.
The bulk of those who invest in such stocks understand that sooner or later the bubble will burst and the money will be lost. However, they continue to carry money here. Why? They just don't want to make money. Investing in meme stocks is a protest, a rebellion against the system.
WallStreetBets has 11 million users, and its main credit was that GameStop (NYSE:GME) stock (also known as meme stock) surged in January.
The most popular post was a photo of a billboard in Times Square that read "GME GO BRRR".
According to Reddit's review of the year, WallStreetBets has become well known for its heavy promotion of meme promotions such as GameStop and AMC, which have risen to dizzying heights. With 366 million posts in 100,000 active podcasts in 2021, WallStreetBets, with its 11 million users, was the hotbed for the most popular posts.
1.Most painful things in the world
The stock market is largely based on faith, and meme investing goes against established rules. Investing in, for example, GameStop does not carry the value of earning. As the sociologist Emile Durkheim suggested, this is an opportunity to participate in a common cause. This process was even given a name - "collective excitation".
This is a kind of act of solidarity with colleagues from Reddit, where the same GameStop is an icon, as well as with a community that appreciates such companies. This kind of investment makes you feel like you are part of something bigger. The icing on the cake could be the ability to make billionaires lose their money.
Who could be next on the stock meme list? What stocks have retail traders been eyeing lately?
Some time ago, Bed Bath & Beyond was held captive by a conservative management team who were unwilling to challenge management to initiate the necessary changes and adjust to a rapidly changing retail environment.
But activist investors helped turn the tide, backed by hedge funds. They managed to clean up the composition of top managers and the board, and also began to dismantle the huge network of enterprises owned by Bed Bath & Beyond.
Just as the store was about to focus on highly specialized segments, the pandemic hit. Now with the economic recovery, the company has good prospects.
The unique feature of the company's retail business has been the ability to generate significant free cash flow, which has reached $1 billion in the past and was in the $750 million range before the pandemic. The company then had to close stores, which literally brought down its economy. But, barely freed from the rubble, the issuer announced a positive cash flow of $62 million. It is likely to grow in the near future.
The company's own e-commerce platform and supply chain, as well as a niche specialization, should help the company return to the leading position in the home goods industry.
5.You know how we doin it
6.Can’t lose money
8.Real dream team
Wendy's is the holding company that owns the chain of fast food restaurants of the same name. The network and its franchisees have 6,700 restaurants in different countries of the world, and the staff consists of hundreds of thousands of people. Wendy's aims to become one of the most popular and thriving brands in its segment.
Retail traders are actively interested in restaurants, and it seems that Wendy's has become a target for them.
Not so long ago, Wendy's was announced in the UK. The company chose Reading as its location due to its proximity to a major transport hub and strong employee base. This moment can be called historic for the company, as it marks the launch of the brand in the UK and Europe.
Last month, the company announced the launch of 13 franchised restaurants in Quebec, Canada. This agreement also includes the construction of new restaurants until 2025. If the plans come true, then Wendy's presence in the region could double.
In addition, the company showed good results for the 1st quarter of 2021, the data was published on May 12. There is an overall increase in sales of 12.5% compared to the 1st quarter of 2020. In this regard, the company has improved financial forecasts for 2021 across all key indicators. All things considered, it makes sense to include Wendy's stock in your portfolio.
The BlackBerry IT company works with businesses and governments around the world to provide smart security software and services. According to the company itself, its security technologies are used in more than 500 million devices, including 175 million cars.
The company's head office is located in Ontario, Canada. BlackBerry is committed to data privacy, cybersecurity, and security through AI and machine learning. The stock currently stands at $11.78 and has more than doubled in value since the beginning of the year.
The company is also active in the OS market. So, she significantly updated her Neutrino Realtime operating system. It is planned to be used in new automotive software as part of BlackBerry's cooperation with the Chinese joint venture BiTECH Automotive.
Neutrino Realtime will be installed on the new Changan Automobile UNI-K SUV, which will allow BlackBerry to expand its presence in the Chinese automotive market.
9.He has spoken
The new OS is being used for a personalized driver user interface that monitors key vehicle systems, the company says.
This collaboration helped BlackBerry gain momentum. In many ways, this became possible thanks to BiTECH customers, including such well-known automakers as Volvo, Audi and Geely. Do you think it's worth buying BlackBerry stock now that meme stock is on the rise? We think so!
Usually, the share price helps to assess the value of the company and its financial position. A sharp rise in the paper speaks of an extremely volatile market, in which stocks can sharply change direction, rushing both up and down. These types of stocks require particularly careful management.
According to American investors Dan Niles and Paul Nolte, one should expect the collapse of American meme-shares if a decision is made to ease the Fed's monetary policy. As a result, liquidity will decrease and conditions for short selling will become less favorable. True, until this moment there is still about a year, so it will be possible to make good money on such securities.
13.Buy the fkn
16.Buy the dip
17.Pay off debt
18.Print more money
19.Dipped the dip
21.Give me your future
23.Dropping after Earning
28.Are you sure
33.Memes and DD’s
36.Staring at my portfolio
39.Hank the Tank
41.Serve the Soviet Union
43.What happened in 2022
45.Market to open