Should Investors Be Watching These Top Meme Stocks In The Stock Market?
Meme stocks have taken the stock market investing world by storm in recent years. What began as a meme on Reddit has turned into a serious investment strategy for many individuals. For the uninitiated, meme stocks are stocks that are popular amongst social media communities. These stocks often see significant price swings due to the high level of speculation and hype surrounding them.
Some of the most popular meme stocks include GameStop (NYSE: GME), Robinhood Markets (NASDAQ: HOOD), and BlackBerry (NYSE: BB). While meme stocks can be highly volatile, they can also offer investors the opportunity to make significant profits. For these reasons, meme stocks have become increasingly popular amongst individual investors. If you’re keen on investing in meme stocks, here are three to watch in the stock market today.
Meme Stocks To Watch Today
- Bed Bath & Beyond (NASDAQ: BBBY)
- Tesla Inc. (NASDAQ: TSLA)
- AMC Entertainment Holdings Inc. (NYSE: AMC)
Bed Bath & Beyond (BBBY Stock)
First on the list is Bed Bath & Beyond (BBBY). For starters, Bed Bath & Beyond is a home furnishings retailer, which operates 955 stores in all 50 U.S. states, Puerto Rico, Canada, and Mexico. According to TrueTradingGroup.com’s social sentiment scanner, on Friday BBBY stock is the most mentioned stock ticker in the r/WallStreetBets Reddit community. As a result, shares of BBBY stock are up another 19% during Friday afternoon’s trading session at $12.69 per share.
Furthermore, in June Bed Bath & Beyond reported its Q1 earning results. In it, the company reported a loss of $2.83 per share on revenue of $1.5 billion. Analysts’ consensus estimate was a loss of $1.33 per share on revenue of $1.5 billion. Meaning, that BBBY missed its earnings expectations for the quarter.
Sue Gove Interim Chief Executive Officer stated, “I step into this role keenly aware of the macro-economic environment. In the quarter there was an acute shift in customer sentiment and, since then, pressures have materially escalated. This includes steep inflation and fluctuations in purchasing patterns, leading to significant dislocation in our sales and inventory that we will be working to actively resolve. The simple reality though is that our first quarter’s results are not up to our expectations, nor are they reflective of the Company’s true potential. The initiatives we are instituting today are just the first steps in putting our business on firm footing to drive our future success.” All in all, I wouldn’t be surprised if investors are going to continue to keep a close eye on BBBY stock.
Tesla Inc. (TSLA Stock)
Following that, let’s look at EV maker Tesla (TSLA). in brief the company designs, develops, manufactures, sells, and leases fully electric automobiles, as well as energy generation and storage systems, and provides related services. Next, Tesla’s automotive segment includes the sales of automotive regulatory credits. The automotive segment also makes up services and others, which include non-warranty after-sales vehicle services, used car sales, retail items, sales to third-party consumers via acquired companies, and vehicle insurance.
In July, Tesla posted stronger-than-estimated second quarter fiscal earnings. In detail, the company called it a “tough quarter”. This is referencing the closing of its plants in Shanghai and global supply shortages. Additionally, they recorded an increase of 57% in adjusted earnings to $2.27 per share. Meanwhile, revenue increased 42% year-over-year to $16.934 billion. For context, this beat wall street estimates of $1.81 a share, with sales of $16.54 billion.
In the company’s presentation to shareholders, they stated, “We continued to make significant progress across the business during the second quarter of 2022. Though we faced certain challenges, including limited production and shutdowns in Shanghai for the majority of the quarter, we achieved an operating margin among the highest in the industry of 14.6%, positive free cash flow of $621M, and ended the quarter with the highest vehicle production month in our history.“ On Friday, shares of TSLA stock are green 3.78% and is currently trading at $892.26. Considering all of this, would you add TSLA stock to your radar right now?
AMC Entertainment (AMC Stock)
To sum up, the list, let’s check out AMC Entertainment (AMC). AMC Entertainment has been of the most popular meme stocks among retail investors. Though, the company itself is one of the biggest movie exhibition companies in the U.S. and Europe. For a sense of scale, it has nearly 950 theaters and 10,500 screens worldwide. The company’s brands include AMC, AMC Classic, and AMC Dine-in.
Just this month, AMC reported a miss for its second quarter 2022 earnings results. Diving in, AMC reported a loss of $0.17 per share on revenue of $1.2 billion for Q2. The consensus estimate was a loss of $0.20 per share on revenue of $1.2 billion. However, the company was able to increase revenue by 162.3% on a year-over-year basis.
Adam Aron AMC Entertainment Chairman & CEO commented, “AMC just completed a spectacularly encouraging second quarter that boosts our mood and brightens our prospects as we look ahead. Total Revenue in the second quarter of 2022 was more than two and a half times the revenue of the second quarter a year ago, and Adjusted EBITDA of a positive $106.7 million compares ever so favorably to a loss a year back in Adjusted EBITDA of a $150.8 million. That is a $257.5 million improvement in only twelve months.” In the last month of trading action AMC stock is up over 57% and is currently trading at $24.60 on Friday afternoon. Do you think AMC is a meme stock worth watching right now?