- Meme stocks have struggled over the past week and a half, but they are still trailing.
- The shares of Bed Bath & Beyond and AMC Entertainment are moving in opposite directions.
- Here are the 10 hottest meme stocks on Reddit heading into September.
Many of the stock market‘s hottest meme stocks have been crushed since mid-August after a sudden resurgence, but it’s too early to say the selloff will spook retail traders.
Retail investors continue to talk about their favorite stocks on online forums like Reddit’s r/wallstreetbets. The practice gained popularity about 18 months ago as retail investors managed to send shares of GameStop (GME) to astronomical levels.
The stock meme movement fizzled out during a large stock market sell-off this year, but revived after shares of Bed Bath & Beyond (BBBY) caught fire. Despite a worrying earnings report, shares of the dejected retailer soared nearly 500% to hit a high of $30 on Aug. 17.
Much of that momentum is now gone. Bed Bath & Beyond’s stock has lost two-thirds of its value in less than two weeks after Ryan Cohen, the chairman of GameStop whose enthusiasm for the business got him soared in the first place, changed hands. ton and sold all of his shares of BBBY. However, the shares managed to register an 11.5% gain last week, including a 5.9% increase on Friday.
Reddit traders can’t say they weren’t warned about the Bed Bath & Beyond implosion. Days after BBBY began to soar, Steve Sosnick, chief strategist at Interactive Brokers, told Insider that the surge was a sign of speculative excess and that the retailer’s valuation was burning cash. made “little sense”.
In an interview with Insider on Friday afternoon, Sosnick said that while it seemed like Cohen followed the rules with his sale of Bed Bath & Beyond, it “definitely looked bad.”
While Sosnick said he would expect those who lost money trading shares of the struggling retailer to feel burned by Cohen and stop chasing meme stocks altogether, he added that Reddit traders tend to be an unpredictable bunch.
“The bottom line is this: meme actions are driven by greed,” Sosnick told Insider. “People will always be greedy, especially when people have made money using the meme stock strategy.”
In other words, just when it looks like GameStop or Bed Bath & Beyond are down, they might still be alive again.
“Meme stocks are like the guy in the horror movie who keeps coming back from the dead,” Sosnick said.
Top meme actions right now
Meme actions are always generating buzz on Reddit, but anyone can guess what the next buzzing name will be. That’s why it may be worthwhile for traders to browse stocks highlighted by HypeEquity, a website that pulls data from investing-related Reddit forums.
There are two lists of the top 10 names on the HypeEquity homepage: high-profile stocks, or those with the most mentions and high trading volumes; and trending stocks, which are rising the fastest on Reddit. Five meme stocks appear on both lists at the moment, including the Invesco QQQ Trust Series 1 (QQQ) – an exchange-traded fund (ETF).
A notable name that sits further down the list is AMC Entertainment (AMC). Like GameStop, AMC is a longtime meme stock that has fully embraced retail marketers. In fact, on Tuesday, the movie company introduced the AMC Entertainment Holding Preferred Equity Units (APE). Conveniently, her ticker is the mob/wallstreetbets nickname for herself. AMC’s stock fell 19% the week following the move, as one of its peers could file for bankruptcy.
Below is a list of the top 10 stocks on Reddit from HypeEquity’s featured stocks and trending stocks pages as of Friday afternoon. With each stock, there is its symbol and the following data from HypeEquity: category (hype or trending), social mentions and percentage change in social volume.