Hey there! Have you noticed some crazy stock symbols dominating financial headlines over the past couple years? Terms like "apes", "tendies", and "stonks" flooding social feeds? Well, let me introduce you the world of meme stocks!
What‘s Behind This Surge in Meme Stocks?
In a meme stock, share price explodes not based on financial metrics, but from social media hype and online rumors. We saw it happen originally with GameStop when traders on Reddit sought to trigger an epic short squeeze. But the mechanics behind these stocks‘ volatility runs far deeper.
So what exactly fuels the mass obsession? A few factors:
- Buzzworthy stories – companies with underdog or comeback appeal, or ties to celebrities like Elon Musk
- Concentrated retail ownership – everyday amateur traders chatting on Reddit/Twitter
- Swing potential – prices spike on positive news, trendiness, short action
- Lottery ticket odds – long-shot small caps offer aspirational get-rich vibes
Now let‘s explore the 8 top meme stocks from 2022 gauged by chatter, search trends, price movement, and other metrics.
I‘ll analyze why each company captures investor attention – as well as showcase some spicy data. Buckle up!
GameStop (GME)
Market Cap: $6.3B
1-Year Return: -46%
| Financial Metric | Latest Data | 1-Year Change |
|---|---|---|
| Revenue Q3 2022 | $1.19B | -30% |
| EPS Q3 2022 | $-0.31 | NM |
| Cash on Hand Q3 2022 | $908M | +1% |
Kicking off our list is none other than the OG meme legend itself – GameStop! This struggling video game retailer led by Chairman Ryan Cohen seemed left for dead before exploding 2,500% in January 2021 thanks to traders on r/WallStreetBets aiming to squeeze out short-selling hedge funds.
GameStop embodied that captivating David vs Goliath narrative – skyrocketing from $17 to $483 per share in weeks! And while 2022 saw GME fade from peak hype, it still drives incredible conversation.
- GameStop related terms trended on Google with 500K+ searches last month
- The GameStop subreddit r/Superstonk maintains ~800K members
- Stock still flirts with 50-100% intraday swings during volatile periods
Sure fundamentals remain rocky with sales struggling industry-wide. But Chairman Cohen continues working towards a digital transformation, recently launching an NFT marketplace. Speculation over pivot potential – plus undying loyal retail ownership promising more rollercoaster volatility – ensures GameStop‘s cemented meme status!
AMC Entertainment (AMC)
Market Cap: $2.6B
1-Year Return: -66%
Remember heading to theaters before COVID? Well AMC Entertainment hopes you got your popcorn butter cravings back!
Another pandemic winner turned meme icon, this cinema chain led by CEO Adam Aron raked in big gains during 2021‘s retail trading frenzy before giving back most profit.
But even after plummeting from highs of $72 to just $5 per share today, AMC still oozes that lovable meme appeal thanks to a few key ingredients:
1) Devoted Reddit Community
- r/AMCStock subreddit boasts 250K+ diehard members
- CEO Aron engages directly with retail investors on Twitter
- Loyal base snatch up shares in hopes of fresh volatility
2) Strategic Embrace of Meme Appeal
- AMC sells retail investor themed popcorn tins
- The company invested in gold/silver miner Hycroft, another retail darling
- AMC explores ventures like in-home movie streaming
3) Continued Cash Burn Concerns
- $5.4 billion debt pile as of latest quarterly filings
- Q3 attendance still 35% below pre-pandemic levels
- Dilution risks keeps short interest over 20% of the float
So while business fundamentals cast doubt on recovery hopes, eccentric CEO Aron seems intent leveraging AMC‘s meme icon status and massive retail following into new initiatives beyond just movies. All supported by a vocal band of loyal "AMC Apes". Talk about an only-in-2022 strategy!
The spotlight now turns to two emerging disruptors in their respective industries…
Tesla (TSLA)
Market Cap: $387B
1-Year Return: -65%
| Financial Metric | Latest Data | 3-Year CAGR |
|---|---|---|
| Revenue Q3 2022 | $21.5B | 50% |
| Net Income Q3 2022 | $3.3B | NM |
| Profit Margin Q3 2022 | 15% | NM |
And now for a mega large cap capturing hype beyond short term price swings – Tesla! While Elon Musk‘s EV pioneer dropped 65% over 2022 amidst rising rates/inflation outlook, hype still overfloweth for Tesla stock. Let‘s break down why TSLA practically overflows with meme energy:
1) Celeb CEO Worship
- Elon cultivates personal brand through Twitter (before the whole buyout thing)
- Every Musk tweet and interview generates headlines
- Devoted fanbase buys Tesla products and stock
2) Extreme Growth Story
- 50% CAGR revenue growth
- Expanding margins as production scales
- Futuristic product pipeline from AI to robots
3) Lottery Ticket Options
- Retail crowd piles into affordable weekly call options
- Creates demand for shares to hedge said options
- Sets stage for periodic short squeezes
So despite the recent cooldown, all signs point to Tesla remaining a retail trader darling thanks to Musk mania merged with a sci-fi worthy business narrative.
Up next – a classic tech brand risen from the ashes!
Blackberry (BB)
Market Cap: $2.8B
1-Year Return: -39%
Remember Blackberry phones? The OG keyboards we couldn‘t text without in 2006? Well this iconic brand still captures investor buzz despite pivoting from hardware to enterprise software years ago.
In fact, Blackberry even enjoyed its own miniature meme rally in 2021 – skyrocketing 330% before crashing back down.
But what explains Blackberry‘s enduring retail intrigue? A few factors:
1) Brand Nostalgia
- Immediate name recognition from its mobile devices heyday
- Conjures up fond tech memories for millenial traders
2) Software/IoT Potential
- Transitioned to security & connectivity software
- Key growth avenues in vehicles, endpoints, AI
3) Affordable Share Price
- Under $7 per share appeals to novice traders
- Options contracts cheaply priced
So will Blackberry reclaim former glory? Unlikely given utterly dwarfed tech peers. Yet the name alone continues attracting speculation. Proving big names die hard!
Now let‘s look at two drastic retail hits in 2022…one shooting to the stars…the other crashing down in flames.
Bed Bath & Beyond (BBBY)
Market Cap: $129M
1-Year Return: -88%
Remember when Bed Bath & Beyond suddenly blasted off brokers‘ most watched lists back in August? Well let me refresh that wild timeline:
January 2022: Struggling home goods chain BBBY trades quietly under $15
March 2022: Billionaire Ryan Cohen of GameStop fame reveals big stake
August 2022: Meme wave explodes BBBY to highs of $30 on turnaround hopes
August 2022: CEO fired unexpectedly, Cohen cashes out full stake
September 2022: CFO jumps to death from NYC tower amid bankruptcy worries
Today: BBBY sitting at $3.15 after 90% crash
Talk about an absolutely bonkers 6-month stint from boring retail stock to bankrupt pelted meme!
Bed Bath & Beyond exhibited the highest highs and lowest lows of hype volatility. While bankruptcy risks seem imminent, we‘ll see if BBBY can pull off some miracle turnaround – or attract another wave of rebranded meme energy to lift shares once again!
On the other end of sustainable space travel spectrum…
Virgin Galactic Holdings (SPCE)
Market Cap: $1.3B
1-Year Return: -46%
What goes straight up usually comes straight down. And unfortunately space tourism hopeful Virgin Galactic demonstrated that gravity firsthand over 2022.
After surging over 400% in 2021 amidst progress towards commercial spaceflight, Richard Branson‘s speculative darling slowly crashed back down to Earth across 2022. Delays securing regulatory approvals and fixing technical issues generated constant headline risks.
Yet despite SPCE shares tanking 75% from 2021 peaks, Redditors seem eager for the next launch catalyst – whenever that comes. Bulls on r/VirginGalactic cheerlead the following dynamics:
1) Underdog Appeal
- David vs Goliath feel battling Jeff Bezos‘ Blue Origin
- Cool factor around pioneering civilian space travel
2) Luxury Story
- ~600 reservations already secured at $450K a ticket
- Literal moonshot upside if flights succeed
3) Retail Ownership
- ~30% of outstanding shares held by retail traders
- Chatter perks up on any test flight updates
So while shares have roundtripped wildly with development setbacks, Virgin Galactic still holds that intangible hype factor so key to meme winners. A risky bet counting on flawless, frequent space voyages…but one drawing mega buzz potential if achieved!
Our last stocks shifts from galaxies far far away to data analytics software…
Palantir Technologies (PLTR)
Market Cap: $15B
1-Year Return: -67%
| Financials | Latest Results | YoY Growth |
|---|---|---|
| Revenue Q3 2022 | $477M | 22% |
| Net Loss Q3 2022 | $101M | NM |
| Adj. FCF Q3 2022 | $37M | -70% |
If Virgin Galactic has taught us anything, it‘s managing expectations. Perhaps no stock better personifies the meme risk/reward gamble than Peter Thiel‘s Palantir Technologies.
This big data analytics platform geared for government defense and corporate use has seen optimism curdle over 2022 amidst slowing top-line growth and ballooning losses.
Yet loyal bulls still pile into Palantir as a long-term disruptor story. And retail die-hards on Reddit cite reasons including:
1) Peter Thiel Mystique
- Co-founded by famous VC and Trump advisor
- Adds grassroots conservative appeal
- Thiel‘s track record inspires long-term belief
2) Patriotic Technology Story
- Advanced software for domestic security/defense use
- Leverages datasets to track threats
3) Perceived Value Discrepancy
- Bulls insist fair value far higher than ~$7 share price
- Cite comparable peers trading at 11x revenue (Palantir trades at 7x)
The Palantir story offers perhaps the most divisive upside/downside skew. Bears see growth stalling out and a bloated SharePoint substitute unable to achieve scale. But its pedigree and patriotic appeal continues winning over pockets of loyal meme traders.
So despite the rocky price action, Palantir seems here to stay on the retail radar for years to come!
Wrapping Up
And there you have it – the top meme stocks drawing investor intrigue and amigos in 2022! This collection of consumer brands, missile defense developers, movie theater operators, and spaceship makers seems randomly assembled, right?
But make no mistake – underlying each big swing or sudden surge lies core ingredients of a sticky meme play:
- Attachment to disruption potential, personalities, and underdog stories
- Spotlight from online crowds averaging down in the red
- Tantalizing reload potential from short squeezes or bursts of FOMO
These stocks definitely live life on the edge though! As we‘ve witnessed firsthand, gravity can come crashing down even harder than the liftoff.
Still – with brigades of loyal owners, rapidly evolving business models, and boatloads of volatility fuel – don‘t expect this cast of characters fading away any time soon!
I‘m Andy Lee. Hope you enjoyed this deep dive into understanding the meme economy. Let me know in the comments what OTHER weird stocks or crypto assets you want analyzed next! For more content like this, don‘t forget to smash those like and subscribe buttons too!
