Summary: Despite their name, there is more to meme stocks than meets the eye, and by dismissing them right off the bat, you can miss out on some potentially profitable investment opportunities. In this guide, we present the top 5 meme stocks to buy in 2024 by registering at an online stock trading platform such as eToro.
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What are meme stocks?
Meme stocks
One of the most notable (and infamous) characteristics of meme stocks is their extremely high volatility. The buzz surrounding these stocks alone is enough to ensure rapid price increases, then sharp declines, then sudden spikes again. This makes meme stocks a rather risky investment by definition. However, it also makes them potentially attractive to those with a higher risk tolerance and particular interest in short-term gains.
Are meme stocks bad investments for the average investor?
Not all meme stocks are inherently bad investments. In fact, in some cases, the attention these stocks garner on social media can actually bring in a ton of new investors and open a large window of opportunities for themselves. Ultimately, that can lead to higher growth prospects. However, as volatility is more likely to be the maing factor in the equation, it’s still essential that you differentiate between meaningless hype and a company’s actual potential.
That is, as with any other stock investment, you should always consider factors such as market trends, the company’s financial health, debt levels, leadership, etc. Also, pay special attention to its competitive position in the industry, always be prepared to face stock price fluctuations, and ensure that your investment strategy is solid enough to weather adverse market conditions.
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Top 5 meme stocks to buy in 2024
For high-risk investors ready to dive right into meme stocks, we have compiled a list of the top 5 meme stocks worth considering across various industries. No matter whether you’re a seasoned investor or a newcomer to the market seeking to capitalize on some trending investments, you can check out the following stocks:
- Nokia (NYSE: NOK);
- Beyond Meat (NASDAQ: BYND);
- BlackBerry (NYSE: BB);
- GameStop (NYSE: GME);
- AMC Entertainment Holdings (NYSE: AMC).
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1. Nokia
Nokia (NYSE: NOK) has seen some renewed interest in its stock from meme investors. Sure, Nokia phones are not as popular as they used to be. However, the company is still heavily invested in the mobile industry, especially 5G, which in itself has been a meme for the past couple of years. For example, Chilean San Antonio Terminal Internacional chose Nokia to run the first industrial-grade LTE private network in the industry in 2022.
Although it is not very likely that its stock is ever going to reach its historical peak, Nokia remains a company with reasonably sustainable profitability and a special place in the hearts of meme enthusiasts. What’s more, since the Nokia stock is rather affordable, it can be a good first-time investment for curious newcomers to the market.
NOK stock price today
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2. Beyond Meat
Beyond Meat (NASDAQ: BYND) is one of better known names in the vegan food provision sector, but despite its status, it is still struggling with a falling stock year-round. However, the stock is still known to experience rapid short-term fluctuations, and there are signs that another short term squeeze is imminent, being the company is the third most heavily shorted stock on the stock exchange.
The biggest problem for Beyond Meat lies in its weak operational diversity and the overall state of the vegan meat market. Indeed, consumers are generally not interested in the kind of products offered by Beyond Meat and some of its competitors, such as Tyson Foods. So, it remains to be seen what the potential squeeze might bring.
BYND stock price today
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3. BlackBerry
BlackBerry (NYSE: BB) was once known for its popular smartphone lines, but is now focusing on cybersecurity and software solutions. While not as obvious a meme stock as something like Tesla, it’s got a lot of qualities that put it in the same basket.
For example, the BB stock is known for defying all expectations at multiple points. In 2022, for example, its earnings beat all projections. This year, the company expects growth between 8% and 12% in cyber business billings due to the heightened adoption of security products.
One of the main reasons for such positive projections is the company’s expanded use of Amazon Web Services (AWS), which helps BB solutions become accessible to developers via cloud services.
BB stock price today
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4. GameStop
GameStop (NYSE: GME) has been synonymous with meme stocks ever since its stock price skyrocketed in early 2021, when retail investors gathered up and fuelled a short squeeze that resulted in the GME stock going up no less than 1600%.
Despite its struggles to make even in the retail space since then, GameStop managed to make headlines again recently, when Ryan Cohen, a former founder of the online pet retailer Chewy, bought 5.8 million shares in GameStop, putting around 10 million in the sleeping retail chain and giving it the status of a meme stock once again.
GME stock price today
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5. AMC Entertainment Holdings
The AMC Entertainment (AMC) theater chain became yet another face for meme stocks in 2021. As most theaters had closed during the pandemic, AMC’s stock price suffered, but a number of investors rallied behind the and drove its price up by 2,573%. It’s no wonder, then, that together with GameStop, AMC has been one of our first associations with meme stocks in the past couple of years.
Moreover, in late August 2023, the stock confirmed its meme status when short-sellers made almost half a billion dollars betting against its performance, which saw a 75% decline in the same month. Things might not be so grim for the company, however. Indeed, some investors believe there’s light at the end of the tunnel, as AMC is making some right moves to bolster their balance sheet and end class-action suits.
AMC stock price today
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Understanding meme stocks
The rise of meme stocks has created many new possibilities for the general investing public to participate in the stock market and perhaps have fun while partaking in the hype. As more and more people engage with each other on social media, the power and influence of their communities and those who frequent them has grown. This easily translates to the stock market, as it ensures:
- Easy access to information: A wide range of varied sources is indispensable when researching potential investments. Social media platforms such as Reddit and Twitter, with millions of registered users with all sorts of interests, can provide you with real-time updates on stock prices, companies, and market trends, especially in regard to trending shares;
- Ease of investment: Online trading platforms have made it easy to access and invest in meme stocks. Moreover, features like fractional shares allow you to invest with lower amounts of capital and buy shares for as little as $1, which attracts even those who are no generally interested in investing;
- Market transparency: Meme stocks can act as indicators of broader market movements and help you identify potential investment opportunities in sectors you perhaps wouldn’t consider otherwise.
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Risks and challenges involved with meme stocks
When considering investment in meme stocks, or any other stock or asset, for that matter, it is essential to understand some of the risks and challenges associated with them. After all, meme stocks are shares in companies that have gained popularity and attention on social media. Social media trends always change, so this kind of buzz can lead to increased trading volume and extreme price swings. For some, such uncertainty is alluring. However, for the average investor, it’s crucial to be aware of potential pitfalls.
Some of the risks and challenges involved with meme stocks include:
- Meme stocks tend to be highly volatile: Meme stocks often experience drastic price fluctuations within short periods of time. That makes them high-risk investments. As an investor, you need to be prepared to handle such fluctuations and adjust your strategy accordingly;
- It is difficult to determine the true value of a meme stock: As mentioned, the driving force behind the rise in meme stock prices is not a company’s intrinsic value but rather hype. That can make it hard to assess whether the stock is undervalued or overvalued and, thus, whether it is a sound investment choice or not;
- Market manipulation and coordinated efforts to drive up stock prices can artificially inflate the market: This poses a risk to new and unsuspecting investors who may be trolled into buying stocks at inflated prices, only to see their value go down once the hype is over. We all saw what happened during the 2021 GameStop short squeeze:
- Meme stocks can sometimes draw regulatory scrutiny: Regulatory actions or inquiries can lead to price volatility and unfavorable investor sentiment, potentially resulting in losses for traders.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about the top 5 meme stocks to buy in 2024
What are the top 5 meme stocks to buy in 2024?
The top 5 meme stocks to buy in 2024 include Nokia (NYSE: NOK), Beyond Meat (NASDAQ: BYND), BlackBerry (NYSE: BB), GameStop (NYSE: GME), and AMC Entertainment Holdings (NYSE: AMC).
Are meme stocks a safe investment?
Meme stocks are inherently volatile and rely mostly on hype. However, some of them can be a good investment option, especially for investors looking to make short-term gains. However, since all investments carry risks, research and due diligence are always advised.
How can I invest in meme stocks?
You can invest in meme stocks by making an account on an online stock brokerage such as eToro and Interactive Brokers.
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Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
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0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
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Copy top-performing traders in real time, automatically.
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