It surged over 800% in its debut but has lost 50% of its value since it peaked. This meme stock burst on the scene in October 2021 via SPAC. Truth Social is also known as Donald Trump’s social media platform. (Nasdaq: DWAC)ĭigital World Acquisition Corp. It’s also up over 3,000% over the past five years. They have faith in Elon Musk and are going to continue buying regardless. Meme stock investors don’t care that Tesla might be overvalued. It sold off slightly before surging another 100% in the second half of 2021. In 2020, during a pandemic mind you, Tesla’s stock price surged 900%. Comparatively, Meta brought in $9.19 billion. In Q3 2021, Tesla brought in $1.62 billion in net income. For example, Tesla is valued higher than Meta Platforms. However, as a meme stock, it is not governed by regular financial rules. It has hit several key milestones recently that give investors a right to be excited. Many Tesla investors would rather sell their home than their Tesla stock.ĭon’t get me wrong. Tesla was able to reach this valuation partly because it’s a meme stock. It’s also one of just a few trillion-dollar companies in the world. This is despite selling just a fraction of the cars that Ford, Toyota and Volkswagen do. How else do you explain its valuation? Right now, Tesla is worth more than the next several automakers combined. Tesla honestly might have the biggest cult following of any stock out there.
Tesla has both of these things in spades. Second, they need to have the potential to surge at any moment. First, meme stocks need to be incredibly popular on social media and have a cult following. I’ll take this moment to remind you of the criteria for meme stocks. It’s an interesting take to lump the world’s most valuable car company in with other meme stocks. Now, onto a slightly unexpected meme stock. You can also check out the forecast that I wrote on GameStop back in October 2021. You can read plenty of commentary on the stock here. This is what creates these price swings.īy this point, GameStop has its own subreddit (r/GME). On the other side, GameStop bulls are still holding onto their shares and buying more. Instead, they are still waiting for the price to return to normal levels. The claim is that the short-sellers never actually exited their short positions.
Many investors insist that the short squeeze is still going on. Even at $200 per share, GameStop is still up about 1,000% for the year. Instead, it has been hovering around the $200 per share range for the second half of 2021. GameStop’s price still hasn’t come back down after the squeeze. That hasn’t really happened with GameStop. During a short squeeze, the price of a stock will skyrocket and then come falling back down shortly after. What’s interesting is that a short squeeze is usually just that…short. This event resulted in the price surging 1,900% in a matter of weeks. GameStop is actually the stock responsible for creating the phrase “meme stocks.” This stock got popular when it experienced a short squeeze in early 2021. On that note, let’s take a look at the five best meme stocks to watch.
They have the potential to surge at any given moment.They are popular on social media and have a cult following.The meme stocks in this article all share the same two traits. For meme stocks, a 100% surge is just another day in the life. However, it would be incredibly rare for Apple’s stock to surge by 100% in a matter of weeks. These stocks will probably do well over the span of a few months or years. This doesn’t happen with larger companies like Apple, Microsoft and Amazon. The main appeal of buying a meme stock is the thought that it could spike at any moment. Due to this volatility, a lot of investors stay on the lookout for the next best meme stocks to invest in. This usually happens regardless of how the underlying business is performing. Meme stocks often experience intense inclines and declines in price. Essentially, “meme stocks” are just stocks that become wildly popular on social media, for any number of reasons. If you’re new here, there is no official definition for meme stocks. Now, it’s an entirely new stock category that even gets its own article. It’s a little crazy to think that “meme stocks” wasn’t a phrase around this time last year.
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