3 Speculative Stocks to Buy on the Return of Roaring Kitty


  • Roaring Kitty’s posting on X after three years presented an opportunity for some interesting speculative stocks to buy.
  • Virgin Galactic (SPCE): Virgin Galactic is not your typical speculative stock.
  • SunPower (SPWR): You shouldn’t write off SunPower — yet.
  • Bloom Energy (BE): Growing demand is likely to keep the good times rolling for Bloom Energy in the foreseeable future.
speculative stocks to buy - 3 Speculative Stocks to Buy on the Return of Roaring Kitty

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Stock trading influencer Roaring Kitty — real name Keith Gill — made a sudden return on social media after a three-year silence.

Gill dropped from social media in the aftermath of 2021’s GameStop (NYSE:GME) event, where institutional investors who shorted GME suffered major losses after retail investors bought it in droves.

GME and other stocks that rallied in 2021 shot up again on his return, making it feel like 2021 all over again.

As of now, Roaring Kitty seems to have retreated from social media again. But that doesn’t mean you can’t take advantage of the market excitement and snap up some stocks that have appreciated on his short-lived comeback.

Here are three choice picks for speculative stocks to buy on the return of Roaring Kitty.

Virgin Galactic (SPCE)

A photo of a futuristic-looking silver airplane.

Virgin Galactic (NYSE:SPCE) is one of the companies that got caught up in that speculative stock buying in 2021.

And on the return of Roaring Kitty, it reprised that role. Virgin Galactic stock added 19% on May 14 — although it dipped 33% at the close of Friday, May 24.

But SPCE isn’t like other speculative stocks, such as GME, which has, in recent years, solely relied on social media sentiment for the occasional favorable performance.

Virgin Galactic is part of a “billionaire space race,” — with several ambitious companies trying to out-innovate each other. There is real potential for substantial growth return on investment (ROI) over the long term, which makes SPCE one of the best speculative stocks to buy.

But that’s assuming, of course, it doesn’t go bankrupt before actualizing its Delta Class passenger spacecraft launch in 2026. The company expects the new spaceships to rake in $450 million in revenue annually.

SunPower (SPWR)

In this photo illustration, the SunPower Corporation logo is displayed on a smartphone screen. SPWR stock
Source: rafapress / Shutterstock.com

In keeping with the meme stocks trend, SunPower’s (NASDAQ:SPWR) shares appreciated over 100% on Roaring Kitty’s re-emergence.

But that was a small reprieve for the California-based solar manufacturer, which has had a brutal one and half years thanks to broader industry problems and its own financial woes. Shares tanked 77% in 2023 before further shedding nearly 40% this year at the time of writing.

However, it may not yet be time to write SunPower’s obituary. Indeed, it may turn out to be one of the more promising stocks to buy. The solar energy sector is typically impacted by factors such as changes in government policy, partnerships or technological advancements.

Case in point: SPWR stock climbed this month on the announcement that the firm had partnered with Tesla (NASDAQ:TSLA) to offer the Tesla Powerwall 3 storage battery.

SunPower will also benefit from the Biden administration’s rollout of tariffs on Chinese solar products and other goods.

Bloom Energy (BE)

BE stock Bloom Energy logo on a building
Source: Sundry Photography / Shutterstock

Bloom Energy (NYSE:BE) is not strictly in the same bracket as the meme-driven GameStop. Still, the renewable energy company gained 8% amid retail investor interest on May 13 after Gill’s post on X.

BE share price further increased last week, following a price target hike by Wells Fargo (NYSE:WFC) from $12 to $14 apiece.

The company has been witnessing increased demand from data centers that need its solid oxide fuel cells. The most notable of such interest is by Intel (NASDAQ:INTC). The two firms signed a power capacity agreement this month that will see “Silicon Valley’s largest fuel cell-powered high-performance computing data center.”

In its first quarter report, CEO KR Sridhar observed that in addition to data centers, the company views “AI hardware supply-chain industries as a good growth opportunity for Bloom, both in the U.S. and in Asia.”

In short, Bloom Energy’s fundamentals look strong in the near future — at least. It may be a good fit for investors looking for speculative stocks to buy.

On the date of publication, Hope Mutie did not hold (either directly or indirectly) any positions in the coins mentioned in this article. The opinions expressed in this article are those of the writer, subject to InvestorPlace.com’s Publishing Guidelines.

Hope Mutie is a writer who’s enthusiastic about finance and crypto. At InvestorPlace, she keeps her finger on the pulse of the stock and crypto markets to create insightful and info-rich content to help investors navigate the market with confidence.

Article printed from InvestorPlace Media, https://investorplace.com/2024/05/3-speculative-stocks-to-buy-on-the-return-of-roaring-kitty/.

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