In this article, we discuss the 10 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 forum called WallStreetBets used memes to create a viral feedback loop of forced buying. Game Stop reached $20 billion in market cap and had more daily trading volume than Apple at one point. The Game Stop short squeeze became a black swan event for the short sellers. Large hedge funds such as Melvin Capital suffered 50% losses during a short period and required emergency capital injections that resulted in costly dilution. Shorting is difficult and introduces a risk of ruin. This is especially true in situations where a large percentage of the float is shorted. We want to remind you that we hedge our portfolio via index puts, sector puts, and sometimes buying puts directly in our own portfolio companies. However, we rarely short because 1) we are not good at it 2) the potential for brain damage is too high and 3) we want to avoid the risk of ruin.”
9. AMC Entertainment Holdings, Inc. (NYSE:AMC)
Number of Hedge Fund Holders: 17
Year-To-Date Gain: 1,675%
AMC Entertainment Holdings, Inc. (NYSE:AMC) owns and runs theatres across the world. The stock was involved in one of two most famous short squeezes of the year that rattled hedge funds even as the company failed to impress with regards to fundamentals.
Citi analyst Jason Bazinet has a Sell rating on AMC Entertainment Holdings, Inc. (NYSE:AMC) stock with a price target of $6. The firm has a market cap of $2.3 billion and the short interest on it remains high at around 22%.
At the end of the third quarter of 2021, 17 hedge funds in the database of Insider Monkey held stakes worth $252 million in AMC Entertainment Holdings, Inc. (NYSE:AMC), down from 21 in the preceding quarter worth $404 million.
In its Q4 2020 investor letter, Mittleman Investment Management LLC, an asset management firm, highlighted a few stocks and AMC Entertainment Holdings, Inc. (NYSE:AMC) was one of them. Here is what the fund said:
“AMC Entertainment (AMC) was our only material loser in Q4, dropping from $4.71 to $2.12 (-55%). I planned on discussing here why it was worth at least the $10 per share that my recently reduced estimate of fair value claimed, but since then AMC raised more cash against their UK holdings and then the stock took off due to speculative players from reddit.com getting involved, so we sold it all around $14 during the last week of Jan. 2021. This was a modest profit for most clients, but a loss for some others, depending on when the account began, so check your statements to see where you came out. And yes, I recognize it as being a dose of good luck, which I heartily accept from the universe as it seemed somewhat lacking in the portfolio of late. After the sale of AMC in late January 2021, our exposure to the movie theater business is now exclusively in Canada via Cineplex, which has a 75% market share and much less leverage on its balance sheet.”
8. Cassava Sciences, Inc. (NASDAQ:SAVA)
Number of Hedge Fund Holders: 10
Year-To-Date Gain: 720%
Cassava Sciences, Inc. (NASDAQ:SAVA) is a clinical-stage biotech firm. The stock has had a very eventful year so far as a retail investor favorite with incredible highs and lows. The 52-week price range lies between $6.7 and $146.6.
The Wall Street journal recently reported that Cassava Sciences, Inc. (NASDAQ:SAVA) was under investigation by the United States Securities and Exchange Commission for manipulated results related to a drug under development.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Cassava Sciences, Inc. (NASDAQ:SAVA) with 1.1 million shares worth more than $70 million.
7. Hut 8 Mining Corp. (NASDAQ:HUT)
Number of Hedge Fund Holders: 10
Year-To-Date Gain: 343%
Hut 8 Mining Corp. (NASDAQ:HUT) is a cryptocurrency mining company. The stock is one of the top picks of Redditors in the crypto space that has seen massive interest from investors this year on the back of a record rally in the price of Bitcoin, the most popular cryptocurrency.
Canaccord analyst Joseph Vafi recently raised the price target on Hut 8 Mining Corp. (NASDAQ:HUT) stock to $20 from $12 and kept a Buy rating on the shares, noting that the firm had a seasoned track record in the crypto mining industry.
At the end of the third quarter of 2021, 10 hedge funds in the database of Insider Monkey held stakes worth $43 million in Hut 8 Mining Corp. (NASDAQ:HUT), up from 4 in the preceding quarter worth $2 million.
6. Upstart Holdings, Inc. (NASDAQ:UPST)
Number of Hedge Fund Holders: 23
Year-To-Date Gain: 413%
Upstart Holdings, Inc. (NASDAQ:UPST) is a digital loan provider based in California. Even as fintech firms undergo a lean period in the US, Upstart has managed to avoid a sharp drop in share price due in part to retail investor interest from Reddit.
Upstart Holdings, Inc. (NASDAQ:UPST) missed market estimates on earnings for the third quarter. Jefferies analyst John Hecht subsequently downgraded the stock to Hold from Buy with a price target of $330.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Third Point is a leading shareholder in Upstart Holdings, Inc. (NASDAQ:UPST) with 12.4 million shares worth more than $3.9 billion.
In addition to Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG), Upstart Holdings, Inc. (NASDAQ:UPST) is one of the stocks attracting the attention of retail investors.
In its Q2 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and Upstart Holdings, Inc. (NASDAQ:UPST) was one of them. Here is what the fund said:
“During the quarter, we purchased Upstart Holdings Inc. Upstart is an artificial intelligence (AI) and cloud-based lending platform. The company uses AI models to underwrite superior loans with lower interest rates, lower default rates, higher approval rates, and increased underwriting automation. Consumers can access Upstart-powered loans through its banking partners’ websites; however, most of its loans are underwritten on Upstart.com. Upstart has a fee-based revenue model and retains only a small portion of the loans, while the majority of the loans end up on the balance sheets of its partner banks or are sold into the capital markets. We believe Upstart’s technology is superior to the FICO score, which is ubiquitous within the consumer credit markets. With an excellent product and a large total addressable market, we believe that Upstart’s prospects are bright.”
5. Lucid Group, Inc. (NASDAQ:LCID)
Number of Hedge Fund Holders: 18
Year-To-Date Gain: 416%
Lucid Group, Inc. (NASDAQ: LCID) is a technology and automotive firm. Even though analysts have recommended other automakers to investors for the EV wave, the Reddit crowd seems to think that Lucid is the better option in this regard.
Citi analyst Itay Michaeli has a Buy rating on Lucid Group, Inc. (NASDAQ:LCID) stock with a price target of $57. In an investor note, the analyst said that the EV tech credentials of the firm were generating strong brand momentum.
At the end of the third quarter of 2021, 18 hedge funds in the database of Insider Monkey held stakes worth $432 million in Lucid Group, Inc. (NASDAQ:LCID).
4. Meta Materials Inc. (NASDAQ:MMAT)
Number of Hedge Fund Holders: 4
Year-To-Date Gain: 229%
Meta Materials Inc. (NASDAQ:MMAT) markets smart materials and photonics. The stock has rallied amid interest from Redditors who are riding the “Meta” rally. Social media giant Facebook recently changed its name to Meta, boosting the share price of Meta Materials as a meme play.
Meta Materials Inc. (NASDAQ:MMAT) recently posted earnings for the third quarter, reporting earnings per share of -C$0.04. The revenue over the period was C$572,612, up more than 189% year-on-year.
At the end of the third quarter of 2021, 4 hedge funds in the database of Insider Monkey held stakes worth $8.8 million in Meta Materials Inc. (NASDAQ:MMAT), down from 5 in the preceding quarter worth $8.6 million.
3. Asana, Inc. (NYSE:ASAN)
Number of Hedge Fund Holders: 33
Year-To-Date Gain: 258%
Asana, Inc. (NYSE:ASAN) owns and runs a work management platform. The firm beat market estimates on earnings per share and revenue for the second fiscal quarter by $0.03 and $7 million respectively.
Jefferies analyst Brent Thill recently downgraded Asana, Inc. (NYSE:ASAN) stock to Hold from Buy but raised the price target to $135 from $115, citing valuation as one of the primary reasons behind the downgrade.
At the end of the third quarter of 2021, 33 hedge funds in the database of Insider Monkey held stakes worth $1 billion in Asana, Inc. (NYSE:ASAN), down from 22 the preceding quarter worth $592 million.
2. Big 5 Sporting Goods Corporation (NASDAQ:BGFV)
Number of Hedge Fund Holders: 17
Year-To-Date Gain: 153%
Big 5 Sporting Goods Corporation (NASDAQ:BGFV) is a sporting goods retailer. The short interest on the stock is very high at around 32% but the share price has soared amid interest from retail investors on Reddit.
Lake Street analyst Mark Smith has a Buy rating on Big 5 Sporting Goods Corporation (NASDAQ:BGFV) stock with a price target of $31. The analyst believes that the demand environment for the firm remains robust heading into the year-end.
At the end of the third quarter of 2021, 17 hedge funds in the database of Insider Monkey held stakes worth $42 million in Big 5 Sporting Goods Corporation (NASDAQ:BGFV), down from 19 in the preceding quarter worth $43 million.
1. Revolve Group, Inc. (NYSE:RVLV)
Number of Hedge Fund Holders: 25
Year-To-Date Gain: 154%
Revolve Group, Inc. (NYSE:RVLV) is an online fashion retailer based in California. The company recently beat market estimates on earnings per share and revenue for the third quarter by $0.07 and $29 million respectively.
Guggenheim analyst Seth Sigman recently assumed coverage of Revolve Group, Inc. (NYSE: RVLV) stock with a Buy rating and a price target of $100, noting that the firm offered a compelling growth story over the next few months.
At the end of the third quarter of 2021, 25 hedge funds in the database of Insider Monkey held stakes worth $229 million in Revolve Group, Inc. (NYSE: RVLV), up from 22 in the preceding quarter worth $211 million.
In its Q1 2021 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Revolve Group, Inc. (NYSE:RVLV) was one of them. Here is what the fund said:
“Revolve is a leading, next-generation online retailer of apparel, accessories, and beauty for fashion-forward people. During the pandemic, Revolve pivoted its offerings and strategy to adapt to the new normal. The company expanded into adjacent categories like beauty, activewear, and intimates, enabling it to serve its customers’ more immediate needs, increase wallet share, and touch more aspects of their lives. This strategy shift was a success. The company delivered record profitability and free cash flow during Q4 2020.
The leadership team intends to use this strong position to prioritize several key strategic investments as the world recovers from COVID-19, including strengthening their Owned Brands portfolio, expanding marketing, and accelerating brand building around the globe. The company reported a record high Net Promoter Score (NPS) for 2020. In geographies where COVID-19 is considered generally under control, the company has seen a return of customer demand for their traditional product categories as well.”
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Disclosure. None. 10 Meme Stocks that More than Doubled in 2021 is originally published on Insider Monkey.
