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The ‘Meme stock’ craze started in 2020 and it refers to stocks that gain popularity through online discussion forums used by retail investors. This can be on a variety of different platforms such as Reddit and Twitter. During these crazes, a company can gain a large following online where investors rally together to push its share price up. Read below to find the Top 10 meme stocks for June 2022.
What are ‘Meme Stocks?’
During the COVID-19 pandemic, many individuals were forced to stay home and decided to start trading. This led to an increase in trading activity and, in particular, the trading of meme stocks.
Meme stocks originated from the Reddit forum r/wallstreetbets where retail investors would discuss stocks and share their winning and losing trades each week. Users began to work together to identify target stocks and would begin to promote them to boost their prices. The excitement surrounding these stocks prompts other investors to buy shares, so they don’t miss out on the inevitable price rise. Stocks that have a high short interest are a favourable target for meme stock traders as it can force the price to shoot up even more when investors are forced to cover their short positions by buying the stock.
The first ‘Meme Stock’ – GameStop
The first well-known meme stock was GameStop. I’m sure we all remember what happened but if you don’t, here’s a rundown!
In August 2020, a video was posted on YouTube by the user ‘The Roaring Kitty’ explaining how GME could soar to $50 as the stock had high short interest from hedge funds. He reasoned that if the price was to rise, hedge funds would have to cover their positions as they would start to lose money, and this would lead to further price increases. Namely – a short squeeze.
Sure enough, in January 2021, this short squeeze happened spectacularly. GME shares neared $500, with its highest closing price hitting $347.51 on January 27th 2021. That was a 1,864% price increase from the start of the month!
With many winners during this frenzy, profiting off the back of this price increase, there were also losers. Most notably, the hedge funds that held short positions on GME. Melvin Capital was one of these hedge funds and during January 2021, they lost more than $6 billion, eventually leading to their closure in June 2022.
Many broker-dealers (such as Robinhood and Interactive Brokers) blocked the sale of GME stocks on their platform, which they legally cannot do. This led to an investigation and eventual fines for Robinhood issued by FINRA.
The retail investor community is still going strong today with many other stocks following similar paths to GameStop. The question now is what will be the next one? Here are 10 meme stocks to watch for 2022.
Warning: Stocks and ‘Meme stocks’ are highly volatile, and your capital is at risk. All ideas in this article do not constitute financial advice and you should perform your research when looking to invest.
Top 10 Meme Stocks you MUST buy right now in June 2022
GameStop (GME)
After hitting a price of $347.51 in January 2021, GMEs’ share price fell back down to around $50 in February 2021, but it didn’t stay there for long! By March that year, GME was back above $250 per share. We are now more than a year on from the GameStop frenzy and GME is still one of the most popular stocks among retail investors.
GameStop has featured in the TrendyToros ‘Top Reddit stocks’ every week since the meme stock frenzy began so with high volatility and trading volume each day, GME could be that meme stock you’re looking to buy.
Find out what investors are saying about GME
AMC Entertainment (AMC)
AMC Entertainment is another stock whose share price exploded thanks to retail investors in 2021. This once-struggling company saw its shares skyrocket from $4 to its highest price of $64.95. That’s an increase of 1,523%!
AMC was on the brink of bankruptcy due to the complications from the COVID-19 pandemic but thanks to retail investors pushing its price up, AMC has recently seen its best earnings in the last two years and plans to improve the business to maximise gains for shareholders. This includes accepting cryptocurrencies as a form of payment at their theatres.
Much like GameStop, AMC is still a favourite amongst retail investors, and it is another stock that has featured in the TrendyToros ‘Top Reddit stocks’ every week for more than a year!
With high volatility and trading volume each day, AMC could be that meme stock you’re looking to buy.
Find out what investors are saying about AMC
Bed, Bath & Beyond (BBBY)
Bed, Bath & Beyond was subject to a major share boost in 2021 due to its high short interest from hedge funds and investors. Like a true meme stock, retail investors pumped money into BBBY, and its share price increased by almost 100% to nearly $35 per share. BBBY is still a strong name in the meme stock community and is now one of the big meme stock names.
With the increase in investment, BBBY has set out a strategy to increase its stock value and improve its stores.
At the time of writing this, BBBY is trading at $6.61. A price that is well off its all-time high of $80. Could we see another rally very soon? BBBY could be that meme stock you’re looking to buy.
Find out what investors are saying about BBBY
Tesla (TSLA)
Whilst you wouldn’t place Tesla in the same category as the rest of the companies in this list. It can still be considered a meme stock thanks to its large online following.
TSLA has featured on the TrendyToros ‘Top Reddit Stocks’ for more than 5 months now and has continuously been one of the most talked-about stocks online.
With a CEO like Elon Musk, there is bound to be some buzz surrounding Tesla and its projects. Most recently the car rental company Hertz partnered with Tesla, ordering more than 100,000 model 3s.
Whilst the price might be expensive for some, TSLA could be the stock you’re looking for and could lead to some large future gains.
Find out what investors are saying about TSLA
Advanced Micro Devices (AMD)
Advanced Micro Devices is of high interest to meme stock traders thanks to an increase in short interest at the end of 2021. This led to an increase in the share price of the chip maker and has subsequently been a trending stock every week on the TrendyToros ‘Top Reddit Stocks’.
After reaching an all-time high of $164.46 last year, at the time of writing, AMD is trading at around 84% below this. With strong fundamentals and a growth plan, AMD could be the stock for you!
Find out what investors are saying about AMD
NIO
NIO designs and sells electric vehicles and is a market leader in the Chinese EV industry. In 2021 NIO shares rose to around $62 and made it one of the largest car manufacturers (by market cap) in the world.
NIO is one of the most popular meme stocks in the Reddit community in 2022 with it constantly being amongst the top spoken about stocks.
In the first quarter of 2022, NIO delivered a very impressive number of vehicles. With the EV market only getting bigger, NIO is a great meme stock that has long-term potential
Find out what investors are saying about NIO
Palantir Technologies (PLTR)
Palantir Technologies’ share price rallied off the back of retail investors becoming obsessed with their company, and this led to their share price reaching around $35, up 250% from their floating price in 2020.
With secure contracts with the government and many partnership deals being struck, PLTR has built a strong base for future growth and one can expect its share price to reach new highs in the coming years.
Palantir Technologies has regularly been featured on the TrendyToros ‘Top Reddit Stocks’ and has seen high volatility throughout this year. It could be the stock you‘re looking for if you’re in the market for the long term!
Find out what investors are saying about PLTR
Novavax, Inc. (NVAX)
Novavax shares skyrocketed after they developed a vaccine for the COVID-19 virus. In February 2021, NVAX reached its highest closing share price of $319.93.
NVAX reported a profit in the first quarter this year for the first time and this led to an increase in interest in the stock. NVAX has been highly volatile throughout this year and retail investors have taken a liking to the lower price.
With high expectations for the future of NVAX, it could be a stock that you add to your watchlist.
Find out what investors are saying about NVAX
Nokia (NOK)
Retail investors set their sights to buy Nokia last year after a large number of hedge funds and investors took short positions in the company. Much like the GameStop frenzy, retail investors attempted a short squeeze and in January 2021, shares in NOK increased by 108%.
Whilst the increase wasn’t long-lasting, Nokia has gained a large portion of the 5G market, securing contracts with firms such as Chunghwa Telecom and Google Cloud. With the increasing roll-out of 5G throughout the world, a Nokia share could be a bargain at its current price.
Nokia has regularly been featured in the TrendyToros ‘Top Reddit Stocks’ and it could be the perfect stock for long-term profits.
Find out what investors are saying about NOK
Virgin Galactic Holdings Inc (SPCE)
One of the first and main meme stocks back in 2020, Virgin Galactic Holdings is a stock on the watchlist of most meme stock traders.
In January 2020, SPCE’s share price rose from around $12 to $44 in one month all down to the enthusiasm that stemmed from online communities. From then on, SPCE experienced some more rallies with its share price reaching over $54.
Virgin Galactic was one of the first companies to do commercial space travel and plans to launch around 400 flights each year.
Whilst the buzz surrounding SPCE has been less than the other stocks featured, it could be a great stock that can bring you lots of profits in the future.
Find out what investors are saying about SPCE
How to Find Meme Stocks
There are lots of ‘meme stocks’ out there that have lots of potential for future growth. A stock is classed as a meme stock when there is lots of enthusiasm surrounding it. This can stem from online communities such as Twitter and Reddit. Trading meme stocks in 2022 is a great way to boost your portfolio and potentially make a profit.
The best place to find the newest meme stocks in 2022 is on TrendyToros.com. TrendyToros is a place where investors can share their opinions on stocks, cryptocurrencies, ETFs, foreign exchange and more. It is completely free to use, just enter your username and share! Keep checking back on the home page to see the trending stocks of the week to find the newest meme stock.
