A meme stock is a stock that has been heavily shorted and has become a heavy buy for retail investors. The goal is to squeeze shorts out of their positions.
Retail investors on Reddit found a loophole to make a lot of money by purchasing heavily shorted stocks. This is why GameStop surged and made the average investor life-changing money.
What are some meme stocks?
Here’s a list of meme stocks we’ve seen floating on Reddit:
- GameStop (GME)
- AMC (AMC)
- Blackberry (BB)
- Sundial Growers (SNDL)
- Nokia (NOK)
- Palantir Technologies (PLTR)
- Roblox (RBLX)
- Zomedica (ZOM)
- Koss (KOSS)
How did these stocks get so popular?
These stocks became popular when GameStop, ticker symbol GME, squeezed. The stock reached close to $500 before descending down to $40 for quite some time.
GME eventually soared back up to $300 and $200. It’s currently trading closer to the $180 range as of April 6th, 2021.
Retail investors over at r/wallstreetbets got together and picked heavily shorted stocks to drive the price action up.
How high can meme stocks go?
Short squeezes are often times aggressive. One of the most popular reddit stocks circulating the internet is AMC Entertainment, ticker symbol AMC.
Retail investors and analysts are predicting this stock can skyrocket anywhere from $100 to even $1,000 and beyond.
The reason being is that many shorts have yet to cover their positions. Retail investors holding AMC are not selling until this short squeeze occurs.
Which is the best meme stock?
Aside from GameStop having the highest run so far, AMC is the next to have skyrocketing gains.
Not only has Fox Business claimed it has a strong squeeze potential, but AMC is the best choice on this list for a long-term investment.
AMC has had a lot of positive news recently with reopening’s occurring all over the country. AMC Entertainment has potential with or without a short squeeze.
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