7 Meme Stocks to Watch Right Now!

September 23, 2021 23:57 UTC
Reading time: 10 minutes

Meme stocks have taken the financial world by storm. The power of social media has changed the game for investors and has created some of the largest moves in the stock market for years.  

But what is the meaning of meme stocks, how do you invest in them with low commissions and what are the best meme stocks to focus on?  

In this ‘7 Meme Stocks to Watch Right Now’ article, we answer these questions and more! 

What is a Meme Stock? 

What is a meme stock? A meme stock represents the shares in a company that have experienced a huge increase in volatility due to viral activity usually from social platforms such as Reddit. The viral activity tends to attract retail investors to purchase the stock with the expectation that it could rise in value.    

A more technical meme stock meaning is the increase in volatility of a stock due to viral activity forcing a short squeeze. Companies that have high short interest (a stock that has a high degree of short-sellers who believe the stock will go down) tend to be favoured the most by meme investors.  

This is because if enough investors buy the stock and drive the price higher it forces the short sellers to buy their positions back in the market to cover their short positions fuelling an even bigger move higher. This was a common strategy for Reddit meme stock traders.   

Why Invest in Meme Stocks? 

Investing in meme stocks has gathered a lot of media attention in the past year due to the extreme price moves seen in some of the share prices of different companies. Stock market memes are popular among retail traders as the narrative on why a stock could go higher is understood more so than a company’s balance sheet or P/E ratio.  

Trying to invest in the best current meme stocks or trying to find the next meme stock Reddit-inspired can be tricky. After all, the price moves are so extreme investing in them is not for the faint-hearted!  

However, investing in these types of stocks can sometimes help struggling companies whose stock price has been heavily shorted by larger institutions and hedge funds.  

For example, struggling cinema chain AMC Entertainment experienced a more than 3,500% move higher in less than half a year. This allowed the company to raise more capital to invest in its theatres to improve the company’s longer-term financial health.   

7 Top Meme Stocks to Watch Now 

Below is a meme stocks list that have gathered a lot of attention from stock traders and investors across different social media platforms. While many traders will want to know ‘what is the best meme stock to buy it’s worth remembering that sentiment changes over time.  

Doing your research, keeping track of market moves and keeping your risk small is key to survival when starting out.  

These seven stocks are ones to watch for the future and can also be traded on via Admirals, making them a great place to start and learn from.   

  1. AMC 
  2. GameStop 
  3. Blackberry 
  4. Bed Bath & Beyond 
  5. Robinhood Markets 
  6. Virgin Galactic  
  7. Nokia 

Let’s have a look at the top three of these in a bit more detail.  

AMC Entertainment (AMC) 

For most of 2020, AMC Entertainment was a penny stock trading below $5 per share. In fact, in January 2021 it was trading around $2 per share. By the end of June 2021, the stock was trading around $72 per share – a more than 3,000% surge higher for this AMC stock meme.  

This was one of the biggest short squeezes for many years in the stock market. Interestingly, the AMC meme stock still attracts short-sellers. However, many analysts point to a fundamental change in the once struggling cinema chain.  

The extreme surge in its share price helped AMC Chairman and CEO Adam Aron raise $1.25 billion to pay down debt, reinvest into its current operations and participate in strategic acquisitions. This extra capital has all coincided with lockdown restrictions ending and people slowly going back to the theatres.  

Currently, the AMC Entertainment share price is down around 45% from its all-time high creating a lot of interest among some investors.  

GameStop (GME) 

Over the course of 2019 and 2020, shares in the US video gaming and consumer electronics retailer GameStop were hovering around $1 per share. It started January 2021 at around $17 per share and in the same month soared to an all-time high of around $480. 

This extreme short squeeze bankrupted some large institutional hedge funds while causing most brokerage platforms around the world to crash and the increased demand from traders buying and selling.  

By the end of February 2021 - just a few weeks later - the GameStop meme stock was back down $40 per share before now sitting around $200. This stock is extremely volatile but has also garnered a lot of attention from well-known celebrities via Twitter tweeting about the GameStop stock meme. This has helped its ‘viral’ status and makes it a stock to watch but also to be careful of! 

BlackBerry (BB) 

Blackberry Ltd is the parent company for the once-famous Blackberry mobile phone.  For years, the company’s share price was trading around $5 per share before sinking to just $2.50 in March 2020. However, by the end of January 2021, the stock price had surged to around $28 per share.  

Since then, the stock has traded back down to around $10 per share where it has stayed for much of the middle of 2021. It might be too far away to get to its previous all-time high price level of around $147 per share but it has the attention of meme stock traders today which is why it’s on this list too.  

Source: Admirals MetaTrader 5, BB, Weekly - Data range: from 22 Jun 2014 to 21 Sep 2021, performed on 21 Sep 2021 at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.  

When to Buy Stocks? Use Automated Software for Actionable Ideas! 

Traders and investors have been writing books for centuries on when to invest in stocks. Knowing when to time the purchase of a stock can be tricky, especially if it is a meme stock that is volatile in itself.  

Fortunately, there is a lot of well-known repeated chart and price action patterns used by traders. There is also a wide range of technical indicators to help identify potential turning points in the market.  

Most traders would use a combination of fundamental analysis – such as a market theme or narrative, like a meme stock – as well as technical analysis patterns to help identify potential turning points in a stock.  

Did you know that the technical analysis part of this equation can now be done automatically via complex, specialised algorithms? 

Did you also know that you can access such tools from the Admirals Trader’s Room in the Premium Analytics section?  

Source: Premium Analytics, 22 September 2021 

For example, the screenshot above shows a search for GME (GameStop) in the Technical Insight Lookup indicator from the Admirals Trader’s Room Premium Analytics tab. 

The indicator shows that there are 17 technical events taking place on the share price of GameStop, over the short-term, intermediate-term and long-term.  There is also a picture to explain the technical analysis pattern and whether it is bullish or bearish.  

Not only can this take out the guesswork of technical analysis but it can help improve your own knowledge and save you a huge amount of time as well! 

Access this tool for FREE from the Admiral’s Trader’s Room today by clicking on the banner below. 

Why Buy Stocks with Admirals?  

✔️ Admirals is authorised and regulated by the UK Financial Conduct Authority (FCA) and other well-known financial regulators.  

✔️ Trade stock CFDs (Contracts for Difference) long and short to potentially profit from rising and falling markets.  

✔️  Invest in real stocks and ETFs (exchange traded funds) through the Invest.MT5 account and collect dividend payouts. 

✔️ Enjoy low US stock commissions of just 0.02 per share! 

✔️ Access real-time, actionable investing ideas through the Premium Analytics Technical Insight Lookup indicator.   

Did you know that you can test ALL of these features and services by opening a FREE demo trading account?  

Click on the banner below and get started today! ▼▼▼  

INFORMATION ABOUT ANALYTICAL MATERIALS:   

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals investment firms operating under the Admirals trademark (hereinafter “Admirals”). Before making any investment decisions please pay close attention to the following:   

  • This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.  
  • Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.  
  • With a view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for the prevention and management of conflicts of interest.  
  • The Analysis is prepared by an independent analyst (Jitan Solanki, hereinafter “Author”) based on personal estimations.  
  • Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.  
  • Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.  
  • Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved

 

Jitanchandra Solanki
Jitanchandra Solanki Financial Markets Author, Admirals London

Jitanchandra is a financial markets author with more than 15 years experience trading currencies, indices and US equities. He is an accredited Market Technician with a BA Hons degree.