In this article, we discuss the 10 meme stocks that more than doubled in 2021. If you want to skip our detailed analysis of these stocks, go directly to the 5 Meme Stocks that More than Doubled in 2021.
Meme stocks have exploded in popularity at the stock market. According to a study by investment bank Goldman Sachs, retail traders are on track to invest more than $400 billion into stocks this year. Most of this money will go into the day trading market where meme stocks are usually an asset.
Some reports suggest that hedge funds have raked in losses worth $12 billion by betting against these meme stocks this year, with some short squeeze battles still playing out at the market. Meanwhile, a list of stocks favored by retail traders, maintained by Goldman Sachs, has registered impressive gains this year. This retail investor boom has led to active monitoring of Reddit forums as institutional investors try to stay ahead of the game.
Some of the stocks presently trending on Reddit include Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG), among others discussed in detail below.
Our Methodology
These were picked based on the hype around the companies on different Reddit forums. The stocks that registered a year-to-date increase of at least 200% were preferred for the list.
The hedge fund sentiment around each stock was calculated using the data of 867 hedge funds tracked by Insider Monkey.
Photo by Adam Nowakowski on Unsplash
Meme Stocks that More than Doubled in 2021
10. GameStop Corp. (NYSE:GME)
Number of Hedge Fund Holders: 9
Year-To-Date Gain: 960%
GameStop Corp. (NYSE:GME) operates in the computer and electronics retail business. The firm is perhaps the most famous meme stock of the year, registering a rally of over 1,000% at the turn of the year due to interest from Redditors as a short squeeze play.
GameStop Corp. (NYSE:GME) has been talking up moves into the crypto and NFT space as it aims to diversify operations beyond the retail business. Ascendiant analyst Edward Woo has a Sell rating on the stock with a price target of $24.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in GameStop Corp. (NYSE:GME) with 2.1 million shares worth more than $373 million.
Just like Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG), GameStop Corp. (NYSE:GME) is one of the stocks on the radar of Redditors.
In its Q1 2021 investor letter, Rhizome Partners, an asset management firm, highlighted a few stocks and GameStop Corp. (NYSE:GME) was one of them. Here is what the fund said:
“The first quarter saw some bizarre market reactions. Game Stop is a heavily shorted legacy video game retailer that saw its stock price rise from $17 to a peak of $483 within a month. It appears that retail investors on a Reddit.com…