In this article, we discuss 13 Best Meme Stocks To Buy Right Now.
What are Meme Stocks?
Meme stocks are largely driven by social media hype. These stocks gain popularity through memes, modified images, videos, and text shared online, often with positive sentiment by individual investors. Joey Loss, founder of Flow Financial in Jacksonville, Florida, commented in June 2024:
“Meme stocks appeal to our fear of missing out (FOMO) and our desire to get rich quickly. For many investors, it may also appeal to our desire to belong to the tribe–as forums across the internet and social media will create the perception that everyone is participating.”
Meme stocks emerged as a trend in late 2020 and early 2021 when online communities started promoting certain companies’ shares and generating buzz to attract buyers. The rise of commission-free trading platforms and online investing groups during the COVID-19 pandemic played a major role, as many people were at home with extra funds from government aid. Low interest rates may have also encouraged new investors. Meme stock investing was particularly appealing to younger investors who preferred it over traditional investment strategies.
Meme Stock Performance
In 2024, meme stocks remained popular across industries, propelled into fame by social media and the appeal of quick profits. Platforms like Reddit’s WallStreetBets played a notable role in fueling speculation, as investors sought higher returns than traditional assets. Despite skepticism from major financial institutions, the excitement around these stocks persisted. Political figures have also influenced market trends. For example, a media company associated with President Trump saw its stock rise to $70 in early 2024 before dropping to $13 by September, all because of the election frenzy. While the stock later rebounded to $36, the company continued to face challenges, reporting a $19.2 million loss in the third quarter of 2024.
Similarly, a well-known video game retailer that gained attention due to social media-driven hype remained a target for short sellers, even years after its dramatic short squeeze in early 2021. Over the last few years, this company has been a focus for investors betting against its stock. Initially, many short sellers expected the business to face bankruptcy, but as its valuation soared during the meme stock frenzy, they argued its market price no longer reflected its actual financial standing. Before its most significant short squeeze in January 2021, short interest exceeded 140%, meaning more shares were being shorted than were available in the market. While short interest dropped after that period, it remained high, as institutional investors became more cautious about taking large positions against the company. Keeping that in mind, let’s take a look at some of the best meme stocks to buy right now.
Photo by Tech Daily on Unsplash
Our Methodology
For this article, we compiled a list of meme stocks based on the consensus of reputable websites, along with insights from Reddit to assess retail investor interest. Using Insider Monkey’s Q4 2024 hedge fund database, we examined the hedge fund sentiment for each stock and selected 13 most popular ones. The stocks are ranked in ascending order based on the number of hedge fund holders as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
13. AMC Entertainment Holdings, Inc. (NYSE:AMC)
Number of Hedge Fund Holders: 20
AMC Entertainment Holdings, Inc. (NYSE:AMC) operates movie theaters across the United States and Europe, where it owns, manages, or holds stakes in different locations. It became one of the most well-known meme stocks during the 2021 market surge. On January 16, AMC announced that starting from 2025, AMC Stubs Insider members can qualify for the new AMC Stubs Premiere GO! status by watching at least eight movies or earning 5,000 AMC Stubs points within a calendar year. This upgrade offers extra perks, including double points on every dollar spent and waived online ticket fees for purchases of four or more tickets.
AMC Entertainment Holdings, Inc. (NYSE:AMC)’s revenue grew 18% year-over-year in the fourth quarter of 2024, with adjusted EBITDA reaching $164.8 million. This was more than three times what it made in the same period last year. This growth was driven by the success of films like Gladiator 2, Wicked, Moana 2, and Mufasa: The Lion King, among others. The company also generated over $200 million in operating cash flow and $114 million in free cash flow, marking its strongest quarterly cash flow since the pandemic. AMC is among the best meme stocks to invest in.
According to Insider Monkey’s fourth quarter database, 20 hedge funds were bullish on AMC Entertainment Holdings, Inc. (NYSE:AMC), compared to 16 funds in the prior quarter. Jim Simons’ Renaissance Technologies was the largest stakeholder of the company, with a position worth nearly $20 million.
12. SoundHound AI, Inc. (NASDAQ:SOUN)
Number of Hedge Fund Holders: 21
SoundHound AI, Inc. (NASDAQ:SOUN) creates independent voice AI technology, helping businesses in the automotive, TV, IoT, and customer service sectors create seamless conversational experiences for their customers. Jim Cramer, CNBC’s Mad Money host, referred to SoundHound AI as a “meme stock,” stating that such stocks can be unpredictable, making it difficult to determine how high they might rise. The company ranks 12th on our list of the best meme stocks.
On February 25, SoundHound AI, Inc. (NASDAQ:SOUN) introduced an improved version of its voice AI platform for restaurants, making its Dynamic Drive-Thru solution faster and more accurate. The update also expands AI-powered ordering beyond the drive-thru, allowing customers to place orders through phone calls, text messages, QR codes, and in-car voice systems.
In the fourth quarter of 2024, SoundHound AI, Inc. (NASDAQ:SOUN) made $35 million in revenue, marking a year-over-year increase of over 100%. By developing an enterprise-grade platform used by major global organizations, SoundHound positioned itself to benefit from the expanding voice AI market. The company’s balance sheet remained strong, ending the year with a subscription and bookings backlog of around $1.2 billion, which is an increase of over 75% year-over-year. This figure represents ongoing customer activity and the value of existing contracts.
As per Insider Monkey’s fourth quarter database, 21 hedge funds were bullish on SoundHound AI, Inc. (NASDAQ:SOUN), up from 11 funds in the previous quarter.
11. Enovix Corporation (NASDAQ:ENVX)
Number of Hedge Fund Holders: 21
Enovix Corporation (NASDAQ:ENVX) focuses on designing, developing, and producing lithium-ion batteries for different industries, including wearables, IoT devices, laptops, & smartphones, medical technology, industrial equipment, and electric vehicles. Enovix’s popularity on Reddit places it among the best meme stocks on our list. On February 6, JP Morgan’s Bill Peterson reiterated an Overweight rating on Enovix with a $15 target. According to the analyst, Q4 results are expected to meet forecasts, with potential stock gains from EX-2M progress, Fab-2 optimization, and product qualification.
Enovix Corporation (NASDAQ:ENVX) reported fourth quarter revenue of $9.6 million. For the full year 2024, revenue rose to $23.1 million, an increase from $7.6 million in 2023. The company shipped early engineering samples to a leading smartphone manufacturer, with successful safety test results keeping them on track for commercial smartphone launches in 2025. Additionally, ENVX delivered their first battery packs featuring custom cells from Malaysia, assembled at their Korea facility. By the end of the fourth quarter, the company had approximately $273 million in cash and cash equivalents. Capital expenditure for the quarter was $16.4 million, while operating cash outflow stood at $16 million.
According to Insider Monkey’s fourth quarter database, 21 hedge funds were bullish on Enovix Corporation (NASDAQ:ENVX), compared to 14 funds in the preceding quarter. Electron Capital Partners held the largest position in the company, with 5.66 million shares worth $61.5 million.