Meme stocks are back. But this rally looks a bit different than 2021

Meme stocks are back. But this rally looks a bit different than 2021

It’s not just GameStop and AMC. Here are some of the other stocks benefitting from the rally—and why this trip ‘to the moon’ may be different than 2021.

BY Chris Morris

All it took for meme stocks to resume their lunar voyage was a single image posted by Roaring Kitty, a popular trader and Reddit celebrity who helped turn GameStop into a meme stock in 2021. But now that GameStop is soaring once more, the floodgates have opened and other companies are seeing big bumps as well.

After closing up 74% on Monday, GameStop once again saw huge out-of-the-gate gains on Tuesday, though the stock did simmer down somewhat as the trading day continued. Shares were up roughly 62% for the day (and are now up more than 190% year to date). AMC, another favorite of the meme-trading community, saw another day of gains, up 33% and climbing 12% year to date after a miserable April.

Analysts say they don’t expect this runup of GameStop and other companies to be the same as it was in 2021. Short traders, who are often targeted by these investors, learned some lessons in that round of the meme stock revolution and aren’t as aggressively short, meaning they’re more likely to cut their losses if things continue to escalate.

That’s not to say they’re avoiding big losses now. On Monday alone, some hedge funds saw losses of nearly $1 billion.

(Ironically, Trump Media, which we called “the meme-iest meme stock to ever meme” is largely being left out of the rally, climbing a sedate 3% Tuesday.)

Meme stocks are a lot like amorous rabbits. They multiply—and usually pretty rapidly. And keeping up can be tough. Reddit’s r/WallStreetBets is a hub of retail investor chatter, but the sheer volume of posts (and the low signal-to-noise ratio) can make it hard to navigate.

Tools like YoloStocks, which track ticker symbols mentioned in the subreddit offer some insight into what Redditors are discussing. (AMC leads the list today, followed by GameStop then BlackBerry.) And professional data trackers like Thinknum Alternative Data offer a more complete picture of online chatter.

Here are some other stocks that appear to be benefitting from the meme stock rally.

Koss Corp – The headphone manufacturer has seen its stock climb more than 40% on Tuesday—and it’s now up more than 78% year to date. Shares jumped from $2.39 last week to more than $6 now.

BlackBerry – A longtime favorite of meme-stock traders, shares were up nearly 12% on Tuesday and are largely break-even for the year. That’s less impressive than other companies, but just a few days ago, the stock was squarely in the red for 2024.

 

Chris Murphy, cohead of derivative strategy at Susquehanna, offered a few other to watch Tuesday on CNBC, some of which are already starting to rise.

Sunpower – The solar energy systems company saw shares rocket up 60% Tuesday, as investors continued to go after short sellers. (More than 80% of the shares are currently borrowed, indicating the stock is being actively shorted, according to data from FactSet.) Year to date, it’s still down a bit.

FuelCell – Shares of this fuel cell company spiked around 24%, snapping a five-day losing streak on Wall Street. Year to date, it’s still down nearly 43%, though.

Tupperware – The well-known home brands has been on the radar of the meme stock community since last July, after it announced it faced a possible delisting, had substantial liquidity problems, and said “there is substantial doubt about its ability to continue as a going concern.” Shares were up 17% Tuesday.

Plug Power – The maker of hydrogen fuel cells saw its shares jump 19% Tuesday, which could be tied to retail investors, but it could also be on news that the company has secured a $1.66 billion government loan.

Virgin Galactic – If you’re planning to “go to the moon,” what better category to invest in than one that specializes in spaceflight? The stock climbed 22% Tuesday, as investors take part in yet another short squeeze. It’s still down 46% for the year so far.

 

 

ABOUT THE AUTHOR

Chris Morris is a veteran journalist with more than 30 years of experience. Learn more at chrismorrisjournalist.com. 


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