5 booming meme stocks to watch

The most famous example of a recent meme stock controversy involves the US video gaming and consumer electronics retailer, GameStop. The company’s financials pre-2021 suggested that it was struggling, and its share price had been in a long-term decline. At the start of 2021, GameStop was trading for around $19 per share.

By the morning of 28 January, the stock hit an all-time high of $483, which amounted to great losses for the hedge funds who were caught short, causing various brokers to restrict trading GameStop and other associated shares until the period of volatility was over. Even then, its share price plummeted after a week to $40, then peaked once again a month later. GameStop is up 1,187% year to date as of mid-2021 and the volatility surrounding the company is still present, so if you’re looking for a volatile meme stock, then this may be the one.

Another struggling company that has seen its share price soar is US-based movie theatre chain AMC Entertainment. Before 2021, AMC Entertainment was considered to be a penny stock, trading at around $4 per share. Following the GameStop frenzy at the start of the year, traders also turned their attention to other companies that had a high level of short interest, leading AMC’s share price to reach a high of $36 at the end of March.

Throughout May 2021, the company’s share price jumped by 570% to reach a peak closing price of $63.97. It is often at the top of the WallStreetBets mention list as one of the most trending meme stocks of the year, up 823% year to date.

As short interest hit a four-year high, another struggling company on this list of meme stocks is BlackBerry Ltd, a Canadian company that specialises in enterprise and security software services. It is also the parent company of mobile phone manufacturing brand BlackBerry. The company was trading for around $9 before the meme stocks boom, where its share price more than tripled to a 52-week high of $28.77.

Shares of BlackBerry climbed sharply, by almost 55% throughout May 2021. In the same month, the company announced a five-year partnership with the University of Waterloo to drive research and development and innovation in Canada. This could suggest exciting new projects from BlackBerry in the coming years, making it a stock to watch.

Nokia supposedly became a targeted meme stock by WallStreetBets due to its involvement in 5G technology. The COVID-19 pandemic has slowed down the rollout of 5G globally, leading to a large number of hedge funds and institutional traders to short Nokia stock. In January 2021, there was a surge of bullish sentiment for the stock and a short squeeze occurred over a single day. As a result, Nokia’s share price jumped by 106%. Although it fell back to its original price in the following days, it has been creeping back over the months of May and June, so investors may wonder if there will be another short squeeze.

Out of these five listed meme stocks, Nokia has the current largest market capitalisation and global presence, operating in over 130 countries worldwide. Therefore, some investors may see Nokia not simply as a meme stock but as a company with long-term investment potential, dividing investor sentiment​.

Bed Bath & Beyond stock had been fluctuating for quite some time before the meme stock mania started, and the company was forced to close over 20% of its stores across the US in 2020. The home furnishings retailer is up about 60% as of June 2021 when compared with the previous month.

Although Bed Bath & Beyond is proving to be a trending meme stock with a rising share price, CEO Mark Tritton does not believe that stock market activity will have an effect on the company’s operations. He also hasn’t emphasised a preference for long-term investors or short-term retail traders, so this could be a stock to watch for both types of traders.