In this article, we discuss the 5 best meme stocks to invest in. If you want to read our detailed analysis of these stocks, go directly to the 12 Best Meme Stocks to Invest In.
5. Affirm Holdings, Inc. (NASDAQ: AFRM)
Number of Hedge Fund Holders: 25
Percentage gain in the past month: 88.68%
Affirm Holdings, Inc. (NASDAQ: AFRM) is a California-based fintech company that ranks 5th on the list of 12 best meme stocks to invest in. Affirm Holdings, Inc. (NASDAQ: AFRM) runs a digital and mobile-first commerce platform in the US and Canada.
On September 10, BofA analyst Jason Kupferberg maintained a Buy rating on Affirm Holdings, Inc. (NASDAQ: AFRM) and increased his price target to $119 per share from the previous $82 following the company’s Q4 report and FY’22 guidance.
The company has a market cap of $24.67 billion. In the third quarter of 2021, Affirm Holdings, Inc. (NASDAQ: AFRM) reported an EPS of -$1.00, missing estimates by -$0.73. The company’s third-quarter revenue came in at $230.66 million and beat revenue estimates by $32.45 million.
At the end of the second quarter of 2021, 25 hedge funds in the database of Insider Monkey held stakes worth $823 million in Affirm Holdings, Inc. (NASDAQ: AFRM), down from 32 in the previous quarter worth $582 million.
Out of the hedge funds being tracked by Insider Monkey, New York-based hedge fund firm Thrive Capital is a leading shareholder in Affirm Holdings, Inc. (NASDAQ: AFRM) with 3,935,366 shares worth more than $265 million.
4. Palantir Technologies Inc. (NYSE: PLTR)
Number of Hedge Fund Holders: 26
Percentage gain in the past month: 14.66%
Software firm Palantir Technologies Inc. (NYSE: PLTR) ranks 4th on the list of 12 best meme stocks to invest in. Palantir Technologies Inc. (NYSE: PLTR) develops software solutions by using AI and machine learning.
On August 13, Wolfe Research analyst Alex Zukin maintained a Peer Perform rating on Palantir Technologies Inc. (NYSE: PLTR) and increased his price target to $25 per share from the previous $20, following the company’s strong Q2 results.
The company has a market cap of $52 billion. In the second quarter of 2021, Palantir Technologies Inc. (NYSE: PLTR) reported an EPS of $0.04, beating estimates by $0.01. The company’s second-quarter revenue came in at $375.64 million, an increase of 49.1% year over year, and beat revenue estimates by $14.54 million. The stock has gained 12%, year to date.
At the end of the second quarter of 2021, 26 hedge funds in the database of Insider Monkey held stakes worth $1.36 billion in Palantir Technologies Inc. (NYSE: PLTR), down from 32 in the previous quarter worth $1.14 billion.
Out of the hedge funds being tracked by Insider Monkey, New York-based hedge fund firm ARK Investment Management is a leading shareholder in Palantir Technologies Inc. (NYSE: PLTR) with 30,681,798 shares worth more than $808 million.
In its Q2 2021 investor letter, Guardian Fund mentioned Palantir Technologies Inc. (NYSE: PLTR) and discussed its stance on the firm. Here is what the fund said:
“The success of the private sector to innovate in order to help people through the lockdowns and to produce vaccines at record speed at scale has been impressive. The fact that almost every public institution was struggling to be effective no matter how hard some of the people worked, shows the fundamental need of the public sector to become data-driven and invest in data infrastructure.
Government institutions have to partner with enterprises such as Palantir to become digital native. The public sector will always struggle to attract the most talented engineers as compensations cannot be justified with tax money and therefore this must be a partnership with specialized private enterprises. This is a great opportunity for Palantir especially as it has already
shown to be capable of working with demanding and complex public institutions entrusting it to work on the most critical and sensitive matters.
The news section of Palantir’s website gives insight in where new business is coming from. The main opportunity is in enterprise software and the faster onboarding time and increased self-service of clients is a positive sign. We believe Palantir is becoming one of the more important global software companies.
In addition, Palantir has quietly become a significant investor, investing well over USD 200 million in eight companies. Thereby, it is following the lead of companies like Tencent, Alphabet, and Shopify of establishing valuable investment portfolios.”
3. The Beauty Health Company (NASDAQ: SKIN)
Number of Hedge Fund Holders: 33
Percentage gain in the past month: 39.52%
The Beauty Health Company (NASDAQ: SKIN) is an aesthetic technology manufacturer based in California that ranks 3rd on the list of 12 best meme stocks to invest in. The Beauty Health Company (NASDAQ: SKIN) sells non-invasive skin-enhancing and detoxification systems globally.
On September 1, Piper Sandler analyst Erinn Murphy maintained an Overweight rating on The Beauty Health Company (NASDAQ: SKIN) and increased his price target to $33 per share from the previous $27.
The company has a market cap of $3.71 billion. In the second quarter of 2021, The Beauty Health Company (NASDAQ: SKIN) reported an EPS of $0.09, beating estimates by $0.07. The company’s second-quarter revenue came in at $66.51 million and beat revenue estimates by $17.30 million.
At the end of the second quarter of 2021, 33 hedge funds in the database of Insider Monkey held stakes worth $665 million in The Beauty Health Company (NASDAQ: SKIN), up from 0 in the previous quarter.
Out of the hedge funds being tracked by Insider Monkey, San Francisco-based hedge fund firm Redmile Group is a leading shareholder in The Beauty Health Company (NASDAQ: SKIN) with 6,353,246 shares worth more than $106 million.
2. SoFi Technologies, Inc. (NASDAQ: SOFI)
Number of Hedge Fund Holders: 39
Percentage gain in the past month: 2%
SoFi Technologies, Inc. (NASDAQ: SOFI) is a San Francisco-based fintech company and it ranks 2nd on the list of 12 best meme stocks to invest in. SoFi Technologies, Inc. (NASDAQ: SOFI) manages an online finance platform.
On September 9, Credit Suisse analyst Timothy Chiodo initiated coverage of SoFi Technologies, Inc. (NASDAQ: SOFI) with a Neutral rating and a $16.50 price target.
The company has a market cap of $12.12 billion. In the second quarter of 2021, SoFi Technologies, Inc. (NASDAQ: SOFI) reported an EPS of -$0.48, missing estimates by -$0.42. The company’s second-quarter revenue came in at $231.27 million and beat revenue estimates by $12.67 million. The stock has gained 23%, year to date.
At the end of the second quarter of 2021, 39 hedge funds in the database of Insider Monkey held stakes worth $1.78 billion in SoFi Technologies, Inc. (NASDAQ: SOFI), up from 0 in the previous quarter.
Out of the hedge funds being tracked by Insider Monkey, California-based hedge fund firm Silver Lake Partners is a leading shareholder in SoFi Technologies, Inc. (NASDAQ: SOFI) with 38,515,543 shares worth more than $738 million.
1. Academy Sports and Outdoors, Inc. (NASDAQ: ASO)
Number of Hedge Fund Holders: 45
Percentage gain in the past month: 27.77%
Topping the list of 12 best meme stocks to invest in is Academy Sports and Outdoors, Inc. (NASDAQ: ASO). The company is based in Texas and offers sporting goods and outdoor recreational products in the US.
On September 10, Loop Capital analyst Daniel Adam maintained a Buy rating on Academy Sports and Outdoors, Inc. (NASDAQ: ASO) and increased his price target to $58 per share from $45 previously, highlighting the company’s solid Q2 results fueled by consistently strong demand in the categories of fitness, footwear, apparel, and team sports.
The company has a market cap of $4.1 billion. In the second quarter of 2021, Academy Sports and Outdoors, Inc. (NASDAQ: ASO) reported an EPS of $2.34, beating estimates by $0.92. The company’s revenue in the second quarter came in at $1.79 billion and beat estimates by $125.64 million. The stock has gained 121%, year to date.
At the end of the second quarter of 2021, 45 hedge funds in the database of Insider Monkey held stakes worth $709 million in Academy Sports and Outdoors, Inc. (NASDAQ: ASO), up from 37 in the previous quarter worth $409 million.
Out of the hedge funds being tracked by Insider Monkey, a New York-based hedge fund firm, Samlyn Capital is a leading shareholder in Academy Sports and Outdoors, Inc. (NASDAQ: ASO) with 2,759,933 shares worth more than $113 million.
You can also take a peek at Billionaire Jeffrey Talpins’ Top 5 Stocks Picks and Top 10 Stocks to Buy Today According to Stephen Perkins’ Toronado Partners.
