The Hottest Meme Stocks for 2023

Meme stocks have exploded onto the scene, captivating retail investors and skyrocketing to fame on the wings of social media hype. As we head into 2023, here are the meme stocks poised to make the biggest waves in the new year:

GameStop Still Reigns Supreme

The OG meme stock, GameStop (GME), remains the apex predator in this habitat. While its meme status originated back in January 2021 with the epic short squeeze, GameStop still has an army of loyal retail investors who believe in its turnaround story. With new NFT and blockchain ventures underway in 2023, GameStop is gearing up for another rollercoaster year.

  • GameStop (GME) has the largest retail investor following of any meme stock.

  • New NFT marketplace and blockchain gaming initiatives planned for 2023.

  • Turnaround plans focusing on digital assets could reignite stock volatility.

AMC Apes Holding Strong

AMC Entertainment (AMC) emerged as a meme stock darling by attracting a following of devoted retail investors calling themselves “AMC Apes.” Despite lingering pandemic headwinds for movie theaters, the AMC Apes have kept the stock afloat through 2022.

  • AMC has passionate community of retail investors on Reddit/Twitter.

  • Meme status could drive volatility amidst movie industry uncertainty.

  • Upcoming blockbuster films like Oppenheimer could boost theater attendance.

Red-Hot Renewables: Tesla

Tesla (TSLA) has evolved beyond its high-growth tech stock status to become a full-fledged meme thanks to CEO Elon Musk’s celebrity status and headline-grabbing antics. Retail investors seem unfazed by Musk’s unusual moves and continue to bet big on this EV maker.

  • Tesla has appeal as tech innovator and meme stock.

  • Musk’s fame drives speculative demand alongside EV dominance.

  • SpaceX progress and Twitter takeover add to 2023 intrigue.

The Crypto Wildcard: Coinbase

As cryptocurrency exploded over the past few years, Coinbase (COIN) went along for the ride. This crypto exchange is the de facto on-ramp for retail investors looking to buy Bitcoin, Ethereum, and more. If crypto goes on another meme-fueled rampage, Coinbase could once again capture lightning in a bottle.

  • Coinbase is the top U.S. crypto exchange gateway.

  • Meme traders eyeing the crypto hype could turn to COIN.

  • But regulatory concerns loom large over crypto’s future.

The One True Doge: Dogecoin

No list of memes would be complete without Dogecoin (DOGE), the OG meme cryptocurrency. DOGE already had monster rallies in 2021 driven by internet culture and Elon Musk tweets. As speculation and volatility return to crypto, this lovable pup may have its day once more.

  • Dogecoin has first mover advantage as the original meme crypto.

  • Elon Musk gives DOGE legitimacy beyond its meme appeal.

  • However, meme hype may not justify its $10B+ market valuation.

While chasing temporary meme mania can be risky, these stocks represent potential opportunities on speculative hype and crowd psychology alone. But remember: meme at your own risk!

For more in-depth information on investing in stocks, check out our comprehensive guide on Demystifying Stock Investments.

Frequently Asked Questions (FAQs)

1. What are meme stocks?

Meme stocks are stocks that are driven by social sentiment, often popular online due to a viral meme or trend. These stocks can experience sharp movements based on public perception and hype rather than traditional financial metrics.

2. What started the meme stock phenomenon?

The meme stock phenomenon started with the GameStop saga in the summer of 2020. An online community of retail investors on the Reddit forum WallStreetBets began buying shares of the video game retailer GameStop, causing its stock price to skyrocket. This was seen as a rebellion against hedge funds that had bet against the company, a strategy known as short selling.

3. What is the current state of meme stocks?

As of the near term, meme stocks are experiencing a resurgence in popularity, with some stocks based on companies that have been struggling financially or are considered outdated. The craze started with GameStop’s stock in the summer of 2020, which caused a market rally and huge gains for individual investors who held onto their shares with “diamond hands.”

4. What was the first meme stock?

GameStop was the first meme stock. Its stock price rose dramatically in the first quarter of 2021 due to a coordinated buying effort by retail investors on Reddit.

5. What are the top meme stocks?

The top meme stocks often change as sentiment shifts, but currently, popular meme stocks include GameStop (GME), AMC, Blackberry, and Bed Bath & Beyond (BBBY). These stocks have experienced significant price rises due to social sentiment and online communities’ efforts to influence their stock prices.

6. What is the meme stock movement?

The meme stock movement refers to the sudden popularity of individual stocks driven by social media and other online platforms. These stocks often experience extreme volatility because they are not necessarily driven by the fundamentals of the company or traditional financial metrics, but by social sentiment and hype.

7. What is a meme stock ETF?

A meme stock ETF is an exchange-traded fund that invests in meme stocks. It allows investors to invest in a diversified portfolio of meme stocks, reducing the risk associated with investing in individual stocks.

8. How do I invest in meme stocks?

Meme stock investing can be risky due to their high volatility. Their stock prices can rise and fall dramatically in a short period, leading to potential losses. Additionally, meme stocks often don’t reflect the underlying company’s fundamental value, making them unpredictable investments. However, some investors have had success by identifying stocks with high social sentiment and getting in early. It’s important to do your research and consider your risk tolerance before investing in these volatile stocks.

9. How has the pandemic affected meme stocks?

The COVID-19 pandemic led to increased activity in the stock market as people stuck at home began investing more. This increased activity, combined with the power of social media, helped fuel the meme stock phenomenon.

10. What does it mean to be bullish on a stock?

Being bullish on a stock means that an investor believes that the stock will increase in value over time. This is the opposite of being bearish, which means that an investor believes the stock price will decrease.

11. What are hedge funds?

Hedge funds are investment firms that use pooled funds from accredited investors to invest in a wide range of assets. These funds are typically more complex and riskier than traditional investments, and are not available to all investors.

12. What is the SEC’s stance on meme stocks?

The U.S. Securities and Exchange Commission (SEC) is closely monitoring the meme stock phenomenon. They are
looking into potential market manipulation and ensuring that the actions of all market participants comply with federal securities laws. The SEC, or Securities and Exchange Commission, is a government agency responsible for regulating the securities industry in the US. The SEC enforces laws and regulations related to securities trading and provides oversight to ensure that investors are protected from fraudulent or illegal activities.

13. What is the outlook for meme stocks in the third quarter of 2023?

The outlook for meme stocks in the third quarter of 2023 is uncertain. While some believe the meme stock trend will continue, others think it may fade as market conditions change. As always, investors should do their research and consider their risk tolerance before investing in these volatile stocks.