E Should Meme Stocks Be On Your List Of Stocks To Buy?

Reddit Stocks Are Still At Top Of Mind

Are all meme stocks considered "Reddit stocks"? At this point, the term has been thrown around everywhere on social media. Whether you're talking about stocks/penny stocks on Reddit, Twitter, StockTwits, Facebook, or even YouTube, you're likely to find people talking about myriad meme stocks. While the hype is a great propulsion mechanism, if you're one of those trading these, it's also important to understand how momentum can be sustained if or when the hype dies down. In the case of stocks like Chico's FAS (CHS), Nokia (NOK), Trivago (TRVG), Cronos Group (CRON), and other meme-ish stocks, they've also got tailwinds persisting from the reopening trade. One of the big points of focus for "smart money" bets began with the notion that these stocks could benefit the most from economies restarting and boy has this trend sparked rallies for individual stocks.

Sometimes it pays to take a step back and look at broader trends. We know that meme stocks will be a "thing" moving forward. But the better bet might be with stocks in industries that will likely see a surge of inflows during the summer months ahead. Travel stocks, for instance, could be some to watch even if Reddit isn't discussing them right now. Your airliners line American Airlines (AAL), Delta (DAL), JetBlue (JBLU), and Southwest (LUV) are a few that come to mind. You've also got cruise ships beginning to come back online right now. Carnival (CCL), Norwegian (NCLH), and Royal Caribbean (RCL) are names that could be a focus. Then you've got ground transportation with rental car companies like Avis Budget (CAR), Hertz, and HyreCar (HYRE) all showing signs of life heading into mid-year.

Let's also not forget names like Booking Holdings (BKNG) and Expedia (EXPE). You've also got energy companies that could benefit in the short term due to a boom in energy usage for everything ranging from travel to a boom in manufacturing. While I'm sure we see plenty of volatility along the way, "meme stocks," the reopening trade, and other trends are likely to emerge and evolve before 2022.

1 2
View single page >> |
How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.