Meme Stocks Resurge with New Investment Opportunities

GameStop and AMC were at the forefront of the meme stock phenomenon, as individual investors jumped on board, trading these stocks in an enthusiastic manner, often driven by social media hype rather than substantial news.

After being quiet for three years, Keith Gill, known online as Roaring Kitty or Deep F Value, made headlines again in June 2024 with a Reddit post showcasing his GameStop holdings worth millions. Following his update, GameStop’s stock saw a 30% increase.

He also made a puzzling post on X about a reverse green card for Uno, which, while not directly explained, hinted at a possible rejuvenation of stock memes.

GameStop’s Impact Continues

Despite the GME thread’s disappearance, there’s a new trend. Investors are now getting into exchange-traded funds (ETFs) that focus on a range of meme stocks. For instance, Roundhill Investments recently launched ETFs aimed at stocks like Opendoor Technologies, Plug Power, and Applied Digital Corp.

Dave Mazza, CEO of Round Hill Investments, stated, “Meme stocks started as a rebellion but have now evolved into a revolution. Retail investors have shown they are a lasting presence in the market. With our MEME ETF, we provide tools for investors to harness that energy through active management.”

ETFs for Wealthy Investors

The MEME ETF is positioned as a potential momentum trade for those wanting to capitalize on current retail trends or as a protective measure against short sellers aiming to profit from declines in these stocks.

Interestingly, Opendoor Technologies, for example, has seen a remarkable 430% rise this year, fluctuating between $0.51 and $10.87 a share. Its dedicated retail investors, called the “Open Army,” have played a pivotal role in its management and strategic decisions, though the company itself isn’t profitable.

To sum up, there are also other notable stocks included in the MEME ETF, such as Hims & Hers Health, Quantum Computing, and Bloom Energy.