“Meme stocks” are popular among individual retail investors on social media platforms, especially Reddit, that have gained attention through viral memes, jokes, and hashtags.
These stocks often have high short interest, meaning that many investors are betting against them. Their sudden surge in popularity can cause their prices to skyrocket, leading to a phenomenon called a short squeeze.
With such volatility and unpredictability, investing in meme stocks and their inherent risk-reward, investors are turning to artificial intelligence (AI) technologies such as ChatGPT to forecast not only their price predictions but also information on such equities. In turn, Finbold posed the question to the AI tool to find out what it considers are the top 4 meme stocks to buy in 2023. It noted:
“It’s important to keep in mind that meme stocks are often highly volatile and unpredictable, and their popularity can change rapidly based on a variety of factors, including social media trends, news events, and market conditions. Therefore, investing in meme stocks can be risky and may not be suitable for all investors.”
The tool added:
“Some popular meme stocks in recent years have included GameStop (GME), AMC Entertainment (AMC), BlackBerry (BB), and Bed Bath & Beyond (BBBY). However, their popularity and performance can change rapidly, so it’s important to stay informed about the latest developments and trends.”
Meme stocks future performance
With the question answered, Finbold used the 1-year price projections offered by stock market experts on Wall Street to acquire a more thorough perspective of each company’s possible future performance.
Using the average analyst rating and 12-month price projections based on the three-month performance of each stock, investors can compare their own due diligence alongside the forecasted price targets.
GameStop (NYSE: GME)
Wall Street analysts have given GME a consensus ‘sell’ rating from 2 analysts based on its performance over the past three months. In total, one expert advocates for ‘hold,’ and another opts to ‘sell.’
The average price forecast for the next year is $12.65; the target indicates a 27.8% downside from its current price, while the highest price target over the next year is $20 +14.16% from its current price.
AMC Entertainment (NYSE: AMC)
Analysts have given the movie theater chain a consensus ‘sell’ from 7 analysts’ ratings. Three analysts opted to ‘hold,’ and the four chose a ‘strong sell.’
Notably, the average price forecast for the next year for AMC Entertainment stock is $2.39; the target indicates a 57% downside from its current price, while even the highest price target over the next year is $4.50 -20% from its current price of $5.65.
BlackBerry (NYSE: BB)
Stock market experts have given BB a consensus ‘neutral’ rating from 9 analysts based on its performance over the past three months. In total, 1 advocates a ‘strong buy’ and one a ‘buy.’ A further five analysts opt to hold, and two opt to ‘strong sell.’
The average price target for the next year is $5.78; the target indicates a 57.89% upside from its current price, while the highest price target over the next year is $12.01 +228% from its price at the time of publication.
Bed Bath & Beyond (NASDAQ: BBBY)
Lastly, the ten analysts rating BBBY stock in the past three months have given it a consensus ‘strong sell’ rating. This is based on 7 ‘strong sell’ ratings, 2 ‘holds,’ and just 1 ‘sell.’
Nevertheless, the average price target for the next year is $1.64, a 33.64% upside from its current price, while the highest price target over the next year is $4, +225% from Bed Bath & Beyond’s current price.
Bear in mind that investing in meme stocks is fraught with peril. These stocks’ values may swiftly rise and fall, often on the same trading day.
As meme stocks’ values are generally influenced more by mood and excitement than actual financial realities, it may be difficult to analyze their genuine worth appropriately. Hence, investors should proceed carefully and do extensive research before putting money into any company, particularly meme stocks.
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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.