7 Meme Stocks Shaking Up Earnings Season
Meme Stocks Talking Points
- “Meme stocks” are instruments that retail traders support beyond their fundamental underpinnings.
- Some are nostalgia-triggering companies past their prime. Others capitalize on industry disruptions, such as cryptocurrencies; all, at some point, have shown momentum.
- Over the next seven pages we’ll dig into some of the more common or popular Meme stocks that have taken the market by storm in early 2021 trade.
7 Meme Stocks Shaking Up Earnings
The retail trading boom that began in 2021 kicked off with a broad focus on tech stocks and the Nasdaq index. These disruptors represented the companies best positioned to benefit from the accelerated digital shift triggered by the pandemic. After dropping from an all-time high just shy of 10,000 at the onset of the pandemic, the Nasdaq catapulted higher. Recently, the index has struck fresh all-time highs around the 14,000 level. But as this resistance has continued to hold, we’ve seen a large portion of the market’s focus shift over into stocks that traditionally wouldn’t get much attention, like GameStop, which we’ll look at in more depth over the coming pages.
NASDAQ 100 INDEX – 1 DAY PRICE CHART (2016 – 2021)
Chart created by Izaac Brook, Source: TradingView
While the Nasdaq continues to perform strongly, much of the speculative activities from the retail trading crowd have navigated away from broad market indexes and have instead focused in on specific stocks. These “meme stocks” have seen considerable momentum in recent months as retail investors bet on their success.
And with cash remaining cheap as inflationary forces have begun to build, investors have shown considerable motivation in deploying their capital in potentially higher-yielding assets, which helps to explain some of the aggressively strong price action shown in markets such as Dogecoin. Over the next seven pages we’re going to look into some of the more popular or common meme stocks that have come into the spotlight as equity prices have continued to launch higher.
Notably, this week saw yet another technical all-time-high for the Nasdaq 100, although the 14,000 level of resistance has continued to hold bulls at bay.
Nasdaq Daily Price Chart
Chart created by James Stanley, Source: TradingView
--- written by Izaac Brook, DailyFX Research Intern, James Stanley, Senior Strategist
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