The story of the video game retailer GameStop (NYSE:GME) shook up the information space and gave small investors faith in their ability to beat the industry giants. Over time, the list of best meme stocks has changed, and the very definition of the term has changed along with it. However, informal discussions and agreements among stockholders can still set the tone for the market. The hype on the Internet can both raise the price of an asset and negate the company’s long history of development. The public influence is so strong that market players have to take into account opinions on Reddit, Twitter, and other social media.
The desire to get rich is increasingly driving buyers of meme stocks, and the principles of choosing the companies are not always clear. Nevertheless, solidarity and cohesion can affect the wallets of even those traders who do not purposefully participate in trading such assets. Charts of the stocks of such companies as AMC Entertainment Holdings (NYSE:AMC), Koss Corp (NASDAQ:KOSS), and Tupperware Corp (NYSE:TUP) are proof of this.
Rivian Automotive, Inc. (RIVN)
Discussions on Reddit are increasingly about Rivian Automotive, Inc. (NASDAQ:RIVN), which leads to price spikes. Such jumps reached up to 300% over the past year, as the chart for the December 2023-April 2024 period shows. Best meme stocks may seem unstable, but the public resonance around RIVN is backed by the technical power and resilience of the electric car manufacturer. The latest analyst estimate is positive on the company’s ability to scale and optimistic about its earnings. Truist Securities has raised its price target for Rivian from $13 to $16, and a considerable number of analysts agree that the target price is close to $19.79.
Rivian Automotive has optimized its processes: improved operational efficiency, focused on its flagship model (R1 series), and suspended the construction of the plant in Georgia. The latter decision could save the company approximately $2.25 billion and reduce capital expenditures. Long-term improvements come not only from reducing losses, but also from mutually beneficial partnerships. Rivian sees the next step of development in the alliance with Volkswagen (OTCMKTS:VWAGY), as the $5 billion deal could expand its technological capabilities and market reach.
SoFi Technologies, Inc (SOFI)
The debut of SoFi Technologies, Inc. (NASDAQ:SOFI) in 2021 sparked investor interest, and 2024 is ready to renew attention to the company and the eastern trend. Ambitious plans in the field of financial technology have gradually made SOFI one of the best meme stocks, and the possibility of obtaining a wide range of services in one application has attracted the eyes of large capital. The latest earnings report reminded Wall Street of the company’s potential and ability to surprise. Revenue for Q2 2024 exceeded the consensus forecast by $30 million and reached $597 million. Compared to the same period in 2023, this value is 22% higher, which, together with GAAP earnings per share (EPS) of $0.01, demonstrates the rise of SoFi.
Despite the volatile times for the tech sector, the company raised its full-year revenue and EPS forecasts, which underscores management’s confidence in the success of the fiscal year. Retail lending stood out from the rest of the services with a very strong performance, with loans disbursed reaching $4.2 billion despite the forecast of $3.2 billion.
Enovix Corporation (ENVX)
The presence of Enovix Corporation (NASDAQ:ENVX) in such fields as Internet of Things (IoT) devices, smartphones, laptops, and medical equipment has led to diverse discussions. Thus, the lithium-ion battery technology innovator appeared at the top of the best meme stocks list, which helped popularize its approach to creating high-quality energy storage solutions. Years of rigorous research and development have led to the collection of patents and the company’s establishment as a key supplier to automakers. The company has grown to a $2 billion market cap based on breakthrough technologies in a high-demand area.
ENVX’s 52-week range of $5.70 to $18.68 indicates high volatility, which is confirmed by the beta coefficient of 2.03. However, this does not change the decision of brokerage firms to set ENVX’s target price at $19.17. The institutional environment is also increasing its focus on Enovix, as a number of holdings (Vanguard Group Inc., Bank of New York Mellon Corp, Principal Financial Group Inc.) have raised their stake in the company. The company’s technological leadership in the face of growing demand for high-performance batteries may lead ENVX to new price peaks in the coming months.
On the date of publication, Julia Magas did not hold (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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
