Published on 13 Oct 2022 on Insider Monkey via Yahoo Finance
In this article, we will be taking a look at the 11 best meme stocks to buy now. To skip our detailed analysis of these stocks and their past performance, you can go directly to see the 5 Best Meme Stocks to Buy Now.
One of the major investment trends observed in late 2020 and early 2021 was the surge in retail trading. Investors, primarily online retail traders, collectively conspired to drive up the prices of a select few stocks that attained the label of "meme stocks." The name came up as a result of the overwhelming social media popularity observed for all these stocks, particularly on platforms such as Reddit's WallStreetBets forum.
One of the primary reasons for the rise of meme stocks was the resentment most people felt toward corporate America in light of the COVID-19 pandemic and rampant inflation. However, the performance of these stocks soon became another factor that increased their popularity. According to an Acuitas Investments report from September 2021, meme stocks outperformed traditional stocks by a significant margin in that year. In January and February 2021, the performance of these stocks was on the rise by 110.2% and 9%, respectively, while the Russel Microcap Index showed figures of 14.2% and 6% for the two months. In June as well, meme stocks rose by 24.7% while the Russell Microcap Index rose only by 2.2%.