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11 Best Meme Stocks To Buy Now

In this article, we will be taking a look at the 11 best meme stocks to buy now. To skip our detailed analysis of these stocks and their past performance, you can go directly to see the 5 Best Meme Stocks to Buy Now.

One of the major investment trends observed in late 2020 and early 2021 was the surge in retail trading. Investors, primarily online retail traders, collectively conspired to drive up the prices of a select few stocks that attained the label of “meme stocks.” The name came up as a result of the overwhelming social media popularity observed for all these stocks, particularly on platforms such as Reddit’s WallStreetBets forum.

One of the primary reasons for the rise of meme stocks was the resentment most people felt toward corporate America in light of the COVID-19 pandemic and rampant inflation. However, the performance of these stocks soon became another factor that increased their popularity. According to an Acuitas Investments report from September 2021, meme stocks outperformed traditional stocks by a significant margin in that year. In January and February 2021, the performance of these stocks was on the rise by 110.2% and 9%, respectively, while the Russel Microcap Index showed figures of 14.2% and 6% for the two months. In June as well, meme stocks rose by 24.7% while the Russell Microcap Index rose only by 2.2%.

The benefits demonstrated by investing in meme stocks have led to an overall rise in individual investors’ estimated share of US equities trading volume. According to a BNY Mellon report on the future of meme stocks, between 2018 and 2020, the estimated share of US equities trading volume held by individual investors has increased from a little over 15% to nearly 20%. As such, these stocks are currently among the most popular securities in the market.

Let’s now take a look at the 11 best meme stocks to buy now.

Our Methodology

We picked the most discussed stocks on Reddit’s WallStreetBets forum over the past few weeks. Some of these include Tesla, Inc. (NASDAQ:TSLA), GameStop Corp. (NYSE:GME), and Bed Bath & Beyond Inc. (NASDAQ:BBBY). Redditors are banding together to invest in these stocks. Some of these are pure meme stocks that are set to gain further on the back of Reddit activity, while others, like Tesla, have strong growth catalysts and bullish investor sentiment.

Best Meme Stocks to Buy Now

11. Atomera Incorporated (NASDAQ:ATOM)

Number of Hedge Fund Holders: 3

Atomera Incorporated (NASDAQ:ATOM) is an information technology company working to develop, commercialize, and license proprietary materials, processes, and technologies for the semiconductor industry. The company operates in North America and the Asia Pacific. Its main product is the Mears Silicon Technology, a thin film of re-engineered silicon used as a transistor channel enhancement.

In the second quarter of 2022, Atomera Incorporated (NASDAQ:ATOM) had an EPS of -$0.16, beating estimates by $0.01. The company’s year-over-year working capital growth rate on average over the past five years is 18.67%.

Three hedge funds were long Atomera Incorporated (NASDAQ:ATOM) in the second quarter, with a total stake value of 1.4 million. Citadel Investment Group was the largest stakeholder in the company, holding 147,800 shares worth $1.3 million.

Atomera Incorporated (NASDAQ:ATOM), like Tesla, Inc. (NASDAQ:TSLA), GameStop Corp. (NYSE:GME), and Bed Bath & Beyond Inc. (NASDAQ:BBBY), is highly popular among meme communities on major social media platforms today.

10. Bed Bath & Beyond Inc. (NASDAQ:BBBY)

Number of Hedge Fund Holders: 14

Bed Bath & Beyond Inc. (NASDAQ:BBBY) is a home furnishing retail company operating a chain of retail stores. The company sells domestic merchandise such as bed linens, bath items, and kitchen textiles, among more. As of this February, it had 953 stores including 771 Bed Bath & Beyond stores in 50 states in the US, and in the District of Columbia, Puerto Rico, and Canada.

On September 30, Alexander Arnold at Odeon Capital upgraded shares of Bed Bath & Beyond Inc. (NASDAQ:BBBY) from Sell to Hold.

This August, Redditors from WallStreetBets made Bed Bath & Beyond Inc. (NASDAQ:BBBY) go viral on the forum, also leading to a 67% hike in the stock’s price. In October, Bloomberg also reported that creditors are attempting to mediate an agreement between the company and bondholders for the purpose of swapping notes due in 2024 for securities that are longer-dated. The news led to Bed Bath & Beyond Inc. (NASDAQ:BBBY) rising a further 3.37% in premarket trading on October 12, since this agreement can potentially ease pressures on the company with its debt payments.

There were 14 hedge funds long Bed Bath & Beyond Inc. (NASDAQ:BBBY) in the second quarter, and 15 hedge funds long the stock in the previous quarter. Their total stake values were $23.1 million and $69.3 million, respectively.

9. GameStop Corp. (NYSE:GME)

Number of Hedge Fund Holders: 17

GameStop Corp. (NYSE:GME) is a computer and electronics retail company providing games and entertainment products through its e-commerce properties and stores. The company operates in the US, Canada, Europe, and Australia. It also sells new and pre-owned gaming platforms, accessories like gaming headsets and controllers, and memory cards.

GameStop Corp. (NYSE:GME) is one of the most famous meme stocks in the market, having been at the center of a major short squeeze that cost many investors billions of dollars. The company has a year-over-year revenue growth rate of 8.55%, and in the fiscal second quarter of 2023, the company’s EPS of -$0.35 beat estimates by $0.07. This September, the company also announced a new partnership with FTX, leading it to rise 6.6% within the first week of September. GameStop Corp.’s (NYSE:GME) revenue in its latest earnings report stood at $1.14 billion.

Citadel Investment Group held 2.1 million shares in GameStop Corp. (NYSE:GME) in the second quarter, worth $252 million, and was thus the largest stakeholder in the company. In total, 17 hedge funds were long the stock, with a total stake value of $64.5 million.

Investment management company Bireme Capital mentioned GameStop Corp. (NYSE:GME) in its second-quarter investor letter. Here’s what the firm said:

“Amazingly, GameStop Corp. (NYSE:GME) is one of our only short positions to not fall in 2022. The stock trades at an $11.5b market cap, exceeding its pre-pandemic peak by billions of dollars. This is despite the fact that revenue is down 30% from the peak, gross margins are down 1500 bps, and the company has generated a negative free cash outflow of $700m in the last four quarters (we had to double check that number because it is so high).

Wall Street has consistently revised downward their estimates of Gamestop’s profitability, making its stock price stability in 2022 even more perplexing. Analysts currently estimate an EBITDA loss of around $400m, markedly worse than their estimates as of 2/3/22 of a loss of $60m. Their recently launched NFT marketplace will do nothing to fix their core business and comes about a year too late to be relevant in the NFT space. Instead, we see this as another example of a meme stock company hoping it can ape its way into a new business model, utilizing the popularity of the stock to drive new lines of business. We are not optimistic, and think the $11.5b market cap drastically overestimates the capability of Gamestop to pivot into something more profitable. We find it unlikely that Gamestop books a GAAP profit ever again.”

8. AMC Entertainment Holdings, Inc. (NYSE:AMC)

Number of Hedge Fund Holders: 18

AMC Entertainment Holdings, Inc. (NYSE:AMC) is a communication services company engaging in the theatrical exhibition business. It owns, operates, or has interests in theatres in the US and Europe. The company operated about 950 theatres and 10,600 screens as of this March and is based in Leawood, Kansas.

B. Riley’s Eric Wold has a Neutral rating on shares of AMC Entertainment Holdings, Inc. (NYSE:AMC) as of August 22. The analyst also placed an $11 price target on the stock.

The CEO of AMC Entertainment Holdings, Inc. (NYSE:AMC), Adam Aron, has a marketing strategy catering to a crowd of retail investors calling themselves “Apes.” AMC Entertainment Holdings, Inc. (NYSE:AMC) has thus been on the rise among meme stocks in the market with its rising popularity among these retail investors. The company’s EPS in the second quarter was -$0.20, beating estimates by $0.03. AMC Entertainment Holdings, Inc. (NYSE:AMC) also brought in revenue of $1.17 billion, up 162.29% year-over-year.

Our hedge fund data shows 18 funds long AMC Entertainment Holdings, Inc. (NYSE:AMC) in the second quarter. Their total stake value was $120.6 million.

7. The Howard Hughes Corporation (NYSE:HHC)

Number of Hedge Fund Holders: 24

The Howard Hughes Corporation (NYSE:HHC) is a real estate development company that owns, manages, and develops commercial, residential, and hospitality operating properties in the US. The company operates through its Operating Assets, Master Planned Communities (MPCs), Seaport District, and Strategic Developments segments. It is based in The Woodlands, Texas.

An Overweight rating was reiterated on shares of The Howard Hughes Corporation (NYSE:HHC) by analyst Alexander Goldfarb at Piper Sandler on October 7. The analyst also placed an $81 price target on the stock.

The Howard Hughes Corporation (NYSE:HHC) has a year-over-year revenue growth rate of 96.04%. This August, Pershing Square decided to retain its position in the company due to its potential in the long run to maximize its profits. Over the past decade, The Howard Hughes Corporation (NYSE:HHC) has maintained a net operating income compound annual growth rate of 17%.

Out of 895 hedge funds tracked in the second quarter, 24 funds were long The Howard Hughes Corporation (NYSE:HHC), with a total stake value of $1.1 billion. Pershing Square was the largest stakeholder, holding 13.6 million shares worth $926.9 million.

Pershing Square Holdings, an investment holding company, mentioned The Howard Hughes Corporation (NYSE:HHC) in its second-quarter 2022 investor letter. Here’s what the firm said:

The Howard Hughes Corporation (NYSE:HHC)’s portfolio of well-located residential land and income-producing commercial assets continues to demonstrate resilient performance despite recent macro concerns of a slowdown in the housing market. The company’s advantaged business model of owning master planned communities (“MPCs”) provides HHC substantial control over the planning and release of land for sale and development, enabling it to take a long-term approach to maximizing the value of its portfolio. As a result of its outright ownership of thousands of acres of conservatively financed land and a management team that combines superb capital allocation and development skills, the company is much less exposed to the cyclicality of stand[1]alone, smaller-scale real estate development companies.

HHC’s MPCs are attractively located in low cost-of-living, low-tax states like Texas and Nevada that are benefiting from significant in-migration. As mortgage rates have increased, the relative affordability and higher quality of life found in Summerlin (Las Vegas, Nevada) and Bridgeland (Houston, Texas), the company’s two MPCs with the substantial majority of remaining land sales, is highly appealing to prospective homebuyers. Although the pace of home sales has moderated from the post-pandemic surge experienced in 2021, housing inventory in HHC’s MPCs has been depleted and is near historical lows.

Homebuilder demand for lots remains strong and the company is experiencing significant growth in pricing due to the supply-demand imbalance, as evidenced by the 25% year-over-year increase in the average price per acre sold this quarter. Likewise, the company is experiencing robust performance across the rest of its portfolio. In its income-producing operating assets, this quarter NOI increased 15% year-over-year driven by the lease-up of new developments and significant increases in rental rates. The pace of condo sales in Ward Village has remained consistently strong due to the unique appeal of the development’s location in Hawaii…” (Click here to read the full text)

6. The Wendy’s Company (NASDAQ:WEN)

Number of Hedge Fund Holders: 28

The Wendy’s Company (NASDAQ:WEN) is an operator of a quick-service restaurant chain by the name of Wendy’s. It operates through its Wendy’s US, Wendy’s International, and Global Real Estate and Development segments. The company is based in Dublin, Ohio.

Joshua Long at Stephens initiated coverage of The Wendy’s Company (NASDAQ:WEN) on September 22 with an Overweight rating and a $25 price target.

Over the next three to five years, its EPS is expected to rise by 10.01% as well. The company also has a one-year dividend growth rate of 58.06%. The company also began gaining fame on Reddit’s WallStreetBets forum last year and well into 2022, suddenly converting it into one of the most popular meme stocks in the market.

The Wendy’s Company (NASDAQ:WEN) had 28 hedge funds long its stock in the second quarter, and 25 hedge funds long its stock in the previous quarter. Their total stake values were $705 million and $797 million, respectively.

The Wendy’s Company (NASDAQ:WEN), like Tesla, Inc. (NASDAQ:TSLA), GameStop Corp. (NYSE:GME), and Bed Bath & Beyond Inc. (NASDAQ:BBBY), is one of the most popular stocks on Reddit forums today.

Click to continue reading and see the 5 Best Meme Stocks to Buy Now.

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Disclosure: None. 11 Best Meme Stocks to Buy Now is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

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Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

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The “Toll Booth” Operator of the AI Energy Boom

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The Hedge Fund Secret That’s Starting to Leak Out

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A New Dawn is Coming to U.S. Stocks

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Should I put my money in Artificial Intelligence?

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Click to continue reading…