7 Meme Stocks Still Winning on Reddit Despite the Naysayers

meme stocks - 7 Meme Stocks Still Winning on Reddit Despite the Naysayers

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Meme stocks show no signs of slowing down. As one of the most interesting themes to emerge in 2021, Reddit-induced investing has completely upended the markets. It’s perhaps the most powerful change in the way markets function since the days of the dot-com bubble. Analysts were hoping that, with the decrease in stimulus, the effect of Redditors would dissipate. But that has not happened.

Rather, these investors now have a taste for the stock market. Recent events also indicate that their influence is still being felt, despite the economy reopening and things getting back to normal. So, if you are looking to invest, knowing the latest meme stocks can help you pick a name that will see additional boosts from time to time. You can’t predict these boosts due to the nature of the hype. Still, these traders are also a very loyal bunch, as they have shown on innumerable occasions.

That’s why you should check out these seven meme stocks. They are popular on Reddit’s r/WallStreetBets as well as solid in their own right:

  • Palantir (NYSE:PLTR)
  • Greenidge Generation (NASDAQ:GREE)
  • AMC Entertainment (NYSE:AMC)
  • GameStop (NYSE:GME)
  • Upstart (NASDAQ:UPST)
  • Virgin Galactic (NYSE:SPCE)
  • Nokia (NYSE:NOK)

Meme Stocks to Buy: Palantir (PLTR)

A close-up shot of a hand on a screen with the Palantir (PLTR) logo.
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First up on this list of meme stocks is Palantir. If you peruse the InvestorPlace page for PLTR stock, you will find that most contributors are very bullish on this one. And there’s good reason for that sentiment.

Palantir is a big data analytics company looking to revolutionize the defense industry. Sure, the company has attracted many controversies. But it has also attracted more and more interest since going public last September.

Palantir has two product offerings, Gotham and Foundry, which cater to government agencies and private firms. At the moment, the business is tilted toward the former. However, Palantir is looking to change this via a multipronged strategy, although it will take time for the shift to happen. Meanwhile, investors can be content with the company’s strong recurring cash flows from government contracts. These all but guarantee a very successful future.

In fact, there are only two negatives that shareholders should keep in mind here: overvaluation and politics. As far as overvaluation goes, investors like Palantir a bit too much. You can’t blame them, but the concerns are real. So, you have to pick your spots with this one.

And as for politics? Well, some members of Congress have expressed distaste regarding Palantir’s operations. Representative Alexandria Ocasio-Cortez is a notable example. Of course, defense is an issue that both sides of the aisle can agree upon. But when investing in PLTR, there will be bouquets and brickbats coming from Congress in equal measure.

Greenidge Generation (GREE)

Concept art of crypto mining with little figuring and a Bitcoin (BTC) token.
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Once known as Support.com, this pick of the meme stocks has had an interesting few months. A provider of technical support, Support suffered during the pandemic. Revenues for 2020 finished at $43.9 million, a 31% dip year-over-year (YOY). Likewise, net income was $400,000 (or 2 cents per share) versus $3.8 million (20 cents per share) in the prior-year period.

These results make sense. Companies cut back on operational expenses and tech support also faced the axe. Consequently, this stock lost a lot of value and short sellers circled the tech company while its future was in doubt. However, as we have seen many times this year, Redditors came to the rescue and pushed this stock sky-high.

Adding fuel to the fire now is this company’s recent merger with Greenidge Generation — its new namesake. Greenidge is a “vertically integrated bitcoin mining and power generation” company. As a Bitcoin (CCC:BTC-USD) miner, the merger is an odd pairing, but many investors see promise here.

In fact, when you take all of its factors into account, it’s easy to understand why Redditors are going gaga over this one. Moreover, GREE stock has corrected since the merger, making now a good time to buy it for day-trading purposes.

Meme Stocks to Buy: AMC Entertainment (AMC)

Image of the entrance of an AMC Entertainment (AMC) branded theater. undervalued stocks
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No discussion of meme stocks can be complete without AMC. Alongside GME, this company is one of the most iconic of all the picks associated with r/WallStreetBets. And, while there have been corrections in recent months, shares of the embattled movie chain still have a one-year return of 675%.

The price momentum here is incredible. For its part, AMC has also chosen to make the best of this situation by issuing a lot of equity and shoring up its balance sheet. It has been conscious of Redditors, too, making sure they are satisfied with each move.

Of course, AMC’s fundamentals still leave a lot to be desired. Last year, along with the broader movie industry, the company struggled to contend with streaming services. The shutdowns meant a bonanza for companies like Disney (NYSE:DIS), Netflix (NASDAQ:NFLX) and Amazon (NASDAQ:AMZN). However, now things are changing. People are going to the movies again. Although revenues are not back at pre-pandemic levels, this is the first time there has been serious momentum behind AMC from an operational standpoint.

Still, the divorce between fundamentals and valuation is not something everyone can stomach. If you are a value investor, there is no way you can reconcile the price with the books. However, you cannot deny that AMC stock is a Reddit favorite. That means even the smallest announcement could greatly impact its price.

GameStop (GME)

GameStop (GME stock) logo on the outside of a store
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Next up on this list of meme stocks is another favorite. GME stock is what really started the Reddit-induced frenzy we’re seeing today. This pick has achieved iconic status among enthusiasts, surging several times in the last year. Just when you think it’s down for the count, it comes roaring back to life.

The net result has been a lot of pain for hedge funds. At the same time, GameStop has not sat idle. Instead, it’s looking to harness the positive momentum and pivot in a new strategic direction.

That’s why there has been a major shakeup in the top leadership and an increased emphasis on e-commerce. Time will tell if this strategy will bear fruit. True, the first quarter saw a decent uptick in digital sales, but it’s still too early to say whether we should celebrate a comeback with this name.

Much like AMC, GameStop management is also conscious of the importance of Reddit. That’s why, for the last several months, the company has not made a move that could alienate its most ardent supporters. This strong correlation between GME and Reddit may be the most trying part of an investment at this point.

Meme Stocks to Buy: Upstart (UPST)

hands at desk near laptop computer, with one hand holding a pile of hundred dollar bills
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Redditors love tech stocks and companies with an asset-light model. Considering this, it’s no surprise that artificial intelligence (AI) lending platform Upstart has jumped from its initial public offering (IPO) price of $20 to over $300 at the time of this writing. That big leap signifies how highly many investors value disruptive tech stocks.

When it comes to Upstart, the company is looking to upend the loan business by using AI, now partnering with several banks. According to Upstart, the use of its platform has 75% fewer defaults than traditional methods. And it certainly seems to be working — Upstart now has some 25 banks and credit unions on board. The company has also surpassed analyst expectations consecutively in the last several quarters.

The only thing going against this pick of the meme stocks right now is the price. Although tech stocks are overpriced at this stage, UPST stock is trading at particularly high premiums. In the last month alone, shares have surged 40%. If it cools down a bit in the coming weeks, though, investors should consider adding this one to their portfolios.

Virgin Galactic (SPCE)

spce stock
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Space exploration is still a very niche industry. As such, Virgin Galactic will have to continue to court interest for several years to come. This company is the brainchild of Richard Branson and listed after merging with a special purpose acquisition company (SPAC) called Social Capital Hedosophia. The SPAC was backed by ace Chamath Palihapitiya.

Since that time, SPCE stock has oscillated wildly, in line with the company’s prospects. Whenever there has been a positive nugget of news, shares have jumped exponentially. But whenever there is a delay or something wrong with a test flight, investor sentiment goes sour. Still, due to its status as one of the meme stocks and its innovative specialized focus, SPCE should continue to do well in the foreseeable future.

It’s also worth noting that SPCE is currently one of the only ways to invest in space tourism at the moment. Neither Elon Musk’s SpaceX nor Jeff Bezos’ Blue Origin have not gone public yet. Plus, with the cash at their disposal right now, it doesn’t look like they will float their shares to the public at this stage.

Meme Stocks to Buy: Nokia (NOK)

a backdrop featuring the Nokia (NOK) logo with a mobile phone featuring the Nokia logo on its screen in the foreground
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Last up on this list is a multinational telecommunications giant based in Finland: Nokia. This company is mostly remembered for being one of the many losers in the smartphone war with Apple (NASDAQ:AAPL) and the iPhone. However, investors might not know that this company has managed to successfully transform itself into a 5G powerhouse. Every quarter, Nokia manages to secure new 5G contracts. Now with CEO Pekka Lundmark at the helm, the risk for “complacency” is minimal.

Most recently, Nokia reported revenue of 5.3 billion euros ($6.2 billion) for Q2, up 4% YOY (or 9% on a constant currency basis). In reporting earnings, Nokia also raised full-year 2021 guidance to between 21.7 billion euros ($25.3 billion) and 22.7 billion euros ($26.5 billion). Previously, it had predicted between 20.6 billion euros ($24.1 billion) to 21.8 billion euros ($25.5 billion).

That said, NOK stock is down 9.5% for the past one month. However, you can chalk that up to enthusiasm surrounding recovery plays. This small decline does not change the fact that Nokia is a very successful, redefined enterprise. When it comes to meme stocks, investors will struggle to find a company as solid as this.

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On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.

Article printed from InvestorPlace Media, https://investorplace.com/2021/09/7-meme-stocks-still-winning-on-reddit-despite-the-naysayers/.

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