New waves of online traders occasionally revive interest in struggling companies, proving that this isn’t a one-time event but a recurring stock market buzz trend. Retail investors share memes, screenshots, and strategies, creating waves of stock market buzz trends that amplify buying pressure and visibility. Over the past 12 months, GameStop (GME), a brick-and-mortar video game retailer struggling with declining sales, has massively outperformed the broader market, surging more than 100%.
Emotional Trading Traps
A market analyst and member of the Research Team for the Arab region at XS.com, with diplomas in business management and market economics. Since 2006, she has specialized in technical, fundamental, and economic analysis of financial markets. Known for her economic reports and analyses, she covers financial assets, market news, and company evaluations.
Investors buy not because the company is strong, but because others are buying, hoping to ride the momentum. Fueled by viral communities on Reddit, X (Twitter), and Discord, meme stocks turned investing into a social movement where sentiment mattered more than fundamentals. The result was a wave of unpredictable stock rallies that challenged everything investors thought they knew about value, risk, and logic. With the topline shrinking and cash flow under pressure, GameStop shares traded sideways between 2023 and 2024, falling by 5% over that period. The start of 2024 was bearish, with shares dropping more than 36% by April of last year. The outlook seemed bleak, with weak earnings and a lack of catalysts on the horizon.
- He rates GME stock a Sell with a $10 price target that is 68.40% below current levels.
- The company introduced a new AI platform that customers are flocking to.
- He’s also written for Esquire magazine’s Dubious Achievements Awards.
- Simply Wall St’s proprietary “Fair Ratio” goes a step further than basic comparisons.
Troika Media: Reddit’s Next GameStop?
Troika has yet to see a boardroom fight end in a hostile takeover. And TRKA stock shares have been non-compliant with Nasdaq listing requirements for far less time than beaten-down BBIG stock. My initial assessment of Troika assumed that the firm would act in good faith to keep investors updated about its outsized Series E deal. A Schedule 13D or 8-K filing should have notified shareholders of any significant exercise, since the dilutive effect would be 1) a material event, 2) a 5% or more change in ownership, or 3) both.
How can you tell if a stock is meme?
Apparently, a cryptic post on X by Keith Gill, aka “Roaring Kitty,” was all it took to once again set off squeezes in some heavily shorted names. With its new, powerful MI300X AI chip on the market and a platform to enhance customer utilization AMD stock has the potential to resume its parabolic climb up the charts. For investors unfamiliar with Troika and TRKA stock, here’s a quick summary.
What Is a Meme Stock?
In GameStop’s case, the stock is currently trading at a PE ratio of 27.3x. That is significantly higher than the Specialty Retail industry average of 16.6x and its peer average of 18.1x. For GameStop, the latest reported Free Cash Flow is $474.5 million. Analysts predict that this figure will grow over the years, with cash flow expected to reach $1.36 billion by 2035.
Approach 2: GameStop Price vs Earnings (PE) Analysis
- As a brick-and-mortar retailer focused on cutting costs to break even, with declining revenues each year, much of the bearish outlook on GME stock seems to make sense.
- Investors buy not because the company is strong, but because others are buying, hoping to ride the momentum.
- The company had been gradually depleting that amount since Fiscal 2023 when it had nearly $1.4 billion on its balance sheet.
- Like people bought GameStop stock resulting in the share value going up significantly, AMC experienced the same.
The meme stock phenomenon made financial markets more accessible. It sparked interest among young investors, pushing them to learn about trading psychology factors, risk, and strategy, skills that can serve beyond the next viral trade. For buyers, prices can collapse just as fast when momentum fades.
It provides a quick snapshot of how much investors are willing to pay for each dollar of earnings, making it a useful metric for comparing companies within the same sector. The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Beyond Meat wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Perhaps ironically, around the same time the stock started to rally, Beyond Meat announced a new distribution partnership with Walmart. This only further influenced the retail community to double down on its position.
This panic buying pushes prices even higher, feeding the volatility-driven investing cycle typical of meme stocks. A single post or viral video can spark mass enthusiasm, triggering a social media stock surge that sends prices soaring within hours. In this environment, attention, not analysis, has become the new currency.
Of all things, the stock market became a vessel of amusement for veteran and first-time investors alike. What followed was a period of casino-like gamification as retail investors fueled pronounced volatility in the most unsuspecting stocks. They work best as small, short-term trades, not as part of a core investment strategy. Most meme stock rallies are short-lived; days or weeks, rarely months. When attention fades, liquidity dries up and prices return to realistic levels. Meme stocks often trade far above fair value.When sentiment shifts, they return to fundamental levels abruptly, catching late buyers off guard.
According to CNN, it is not just GameStop that has seen the stock spike so fast that it is shocking. Those who believe that streaming is not the same as walking into a theater with popcorns and watch a film have vowed not to see it go down without a fight. They posted on Twitter that they would save AMC and they stuck to their word. AMC was headed for bankruptcy, but Reddit users came to its rescue with the share price rising by more than 200%.
While Beyond Meat stock could bounce back, my hunch is that any upside swings will be fleeting. Until the company can demonstrate measurable improvements and sustained progress, I see little reason to own the stock. Whether Beyond Meat becomes the next AMC or GameStop remains to be seen. But right now, I think the parallels with each of these companies are quite clear.
While its survival isn’t guaranteed, its iconic status and strategic pivots keep it in the game—for now. Post-squeeze, the company embraced significant leadership changes. Ryan Cohen, co-founder of Chewy, took a prominent role in reimagining GameStop’s strategy, focusing on e-commerce and aligning with modern retail trends. Despite these efforts, GameStop’s revenue streams remain under pressure, and its future depends on successfully adapting to a digital-first market. In retail investing lexicon, the phrase “to the moon” simply means an asset’s price is rising sharply. In 2021, shares of GameStop and AMC rose significantly — seemingly completely out of nowhere.
Instead, it took until March 7 for the firm to retroactively announce in its annual report that its share count had risen over five-fold. Meme stocks prove that markets are no longer ruled by numbers alone, they’re ruled by narratives. Since Ryan Cohen made his initial investment in GME stock back in 2020, he has not sold a single share despite the significant appreciation of his initial stake and near 100% gains in 2024. In fact, in 2023, he increased his stake by an additional 10 million shares.
Discover 1411 companies where insiders are betting big on explosive growth. GameStop continues to balance its nostalgic appeal with the need to innovate. The company’s ability to leverage its passionate fanbase and redefine itself in the gaming and digital ecosystems will determine its long-term survival. The Motley Fool has positions in and recommends Beyond Meat and Walmart. While a turnaround could be in store by way of the Walmart deal, I think such a thesis Acciones airbnb is rooted more in hope than realism. My suspicion is that the company’s products — plant-based alternatives to meat — largely remain a niche category and therefore have a limited serviceable market.
The thing about stocks is that you are never guaranteed about their performance yet those who have become good at making predictions have made a killing solely from stock trading. With ADMA Biologics, the current recommendation is that you should buy and there are no sell and hold recommendations. However, you should note that since the COVID-19 pandemic began the shares have decreased by 2.2%. In March 2020, they were trading at $2.31, but they have gone down to $2.26.