3 Meme Stocks to Buy Now: May 2024


  • Explore the resurgence of meme stocks to buy, as ‘Roaring Kitty’ reignites GameStop and AMC’s epic rally.
  • Nvidia (NVDA): Nvidia’s delivered another blow-out earnings print, driven by more than a 400% increase in increase in data center revenues.
  • Lululemon Athletica (LULU): Despite domestic challenges, Lululemon’s consistent earnings beats and robust growth in China and other international arenas point to a healthy upside ahead.
  • Robinhood (HOOD): Robinhood’s diversified expansion into new financial services highlight its evolution beyond just a crypto trading platform.
Meme Stocks to Buy - 3 Meme Stocks to Buy Now: May 2024

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Meme stocks are back in the big leagues, spurred by the return of Keith Gill, known as ‘Roaring Kitty.’ Many of the original meme stock plays, like GameStop (NYSE:GME) and AMC (NYSE:AMC), which went parabolic in 2021, soared over 70%. Many would feel that renewed interest in meme stocks to buy echoes the 2021 frenzy when retail traders effectively reshaped markets.

To be fair, the current meme stock rally which started on Monday, has mostly fizzled out. Thus, equating the sustained impact of the original meme stock rally with the current surge misses the mark. However, the renewed enthusiasm in stocks with a strong online backing points to lucrative opportunities for savvy investors.

In this article, though, we’ll be taking a different approach. The spotlight is on meme stocks to buy with real substance, drawing massive attention to Reddit (NYSE:RDDT) via the ApeWisdom tool.

Nvidia (NVDA)

Microchip GPU with Nvidia logo in the background. High quality photo. NVDA stock
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Tech juggernaut Nvidia (NASDAQ:NVDA) dominated headlines leading up to its first-quarter (Q1) earnings print and didn’t disappoint. It delivered an eye-watering revenue of $26 billion, a 262.2% year-over-year (YOY) increase, beating estimates by $1.45 billion. Data center sales, in particular, surged 427% YOY and roughly 23% sequentially. Moreover, its non-GAAP EPS of $6.12 blew past estimates by 54 cents. Looking ahead, the firm expects to generate $28 billion in sales during the second-quarter (Q2), a 101% increase from the prior-year period.

That’s not all, though, as the AI chip giant announced a massive 150% quarterly dividend of 10 cents per share. Additionally, it announced a ten-for-one forward stock split, which would have NVDA stock trading at around $95 at current prices.

It’s safe to say that Nvidia’s Q1 results provided plenty to unpack over its dominance in the AI chip market. It commands roughly 80% of the market, and its peers are merely contending for what remains. Moreover, with it expected to dish out new products like the Blackwell GPU, it would be rather foolish to bet against the stock.

Lululemon Athletica (LULU)

Lululemon storefront in a mall. People shop inside the store among the clothes. LULU stock.
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Lululemon Athletica (NASDAQ:LULU) is a big-name retailer trading at a deep discount. LULU stock is trading roughly 42% behind its 52-week highs, buffeted by economic challenges dampening its domestic sales. Consequently, the stock trades around 4.25 times forward sales estimates, 45% higher than its 5-year average.

The athletic apparel and sneaker producer has witnessed a marked slowdown in U.S. sales, resulting in a lackluster full-year top-and-bottom-line projection. Moreover, it disclosed plans to close its Washington state distribution center while cutting 100 jobs. Despite its challenges, investors have gotten too spooked by its current woes.

On the bright side, it beat estimates on both lines for the eighth-consecutive quarter, including its latest earnings print. Additionally, international sales jumped by 54% YOY, with sales in China alone climbing to 78%. Turning to analyst projections, Wall-Street analysts assign a ‘moderate buy’ rating to the stock, with more than a 54% upside from current prices.

Robinhood (HOOD)

Robinhood's mobile app logo is displayed on a smartphone screen. Robinhood stocks. HOOD stock
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Shares of social trading platform Robinhood (NASDAQ:HOOD) have been on fire over the past year. HOOD stock surged more than 124% last year and an even better 139% in the past six months. A vibrant crypto rally and favorable stock market dynamics have propelled HOOD stock to multi-year highs. Moreover, given the likelihood of interest rate cuts later this year, expect more upside for HOOD stock.

Furthermore, Robinhood is far from being just a one-trick pony. Though much of its success is linked to its strength in crypto markets, its expansion into other fintech verticals makes it a more comprehensive financial services provider. More specifically, it’s looking to venture into retirement accounts, expand its trading options, and recently launched a Gold credit card. The card has attracted more than a million waitlist sign-ups, with a 42% YOY increase in subscribers.

Moreover, following another blowout quarterly result, Bank of America Securities analyst Craig Siegenthaler upgraded HOOD stock to a ‘buy’ from ‘underperform.’ The notable double-upgrade was driven by heightened retail engagement, enhanced organic growth, and the platform’s positive operational leverage following sizable cost reductions. It is one of the best meme stocks to buy, in my opinion.

On the date of publication, Muslim 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.

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

Article printed from InvestorPlace Media, https://investorplace.com/2024/05/3-meme-stocks-to-buy-now-may-2024/.

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