Meme stocks are a stock associated with a particular meme or widespread cultural phenomenon. The stock you buy is not calculated based on the company’s overall success but on how much attention it receives on social media. In recent years, there have been several well-known meme stocks in Singapore, following the popularity of the trend online. Remember, most financial analysts agree these stocks are severely overvalued and that mass crowd pile-ins are difficult to predict.
GameStop Corp.
GameStop Corp. is a video game and entertainment software retailer with more than 2,000 stores across the United States, Canada, and Europe. The company’s stock prices have been highly volatile in recent years, due in part to the popularity of its “meme stock” status on social media.
In January 2021, GameStop’s stock price rose sharply after a group of small investors began buying up shares to drive up the price to force a “short squeeze” on hedge funds that had bet against the company. The phenomenon was dubbed the “Reddit rally” and gained mainstream attention when Tesla CEO Elon Musk tweeted his support for the effort.
The stock price peaked at over SGD480 per share before crashing down to below SGD50 per share just a week later. Nevertheless, the company’s brief moment in the spotlight helped propel it to become one of Singapore’s most well-known meme stocks.
AMC Entertainment Holdings, Inc.
AMC Entertainment Holdings, Inc. is one of the largest movie theatre chains in the world, with more than 11,000 screens across 661 locations. The company has been battling due to the coronavirus pandemic, which has decimated the global box office.
However, AMC’s stock price surged in late 2020 after it became embroiled in the same “short squeeze” scheme that propelled GameStop to meme stock fame. Once again, a group of small investors bought up shares to drive up the price to force a squeeze on hedge funds that had bet against the company.
The stock price peaked at over SGD20 per share before crashing down to below SGD5 per share just a few weeks later. Nevertheless, AMC’s brief moment in the spotlight helped propel it to become one of Singapore’s most well-known meme stocks.
ContextLogic Inc.
ContextLogic Inc. is the parent company of Wish, a popular e-commerce platform. The company was founded in 2010, and its stock began trading on the Nasdaq in December 2020.
In January 2021, ContextLogic’s stock price surged after the company announced that it had received an SGD1 billion investment from SoftBank.
Tesla Inc.
Tesla manufactures electric cars and clean energy founded by CEO Elon Musk. The company has been in the news frequently due to its innovative products and bold business plans. Though Tesla, unlike many of the other stocks on this list, is a major business, it also receives a lot of traction on the same message boards as other meme stocks.
Tesla’s stock price surged after the company announced that it had delivered a record number of vehicles in 2020. The news helped to legitimise the company, helping it to become one of the most well-known meme stocks in Singapore.
Rocket Companies Inc.
Rocket Companies Inc. is a holding company for several financial services businesses, including Rocket Mortgage, Rocket Loans, and Rocket Auto. The company was founded in 1985, and its stock began trading on the New York Stock Exchange in August 2020.
In September 2020, Rocket Companies announced that it had agreed to go public through a merger with a particular purpose acquisition company (SPAC), Gores Metropoulos. The deal helped to legitimise the company, helping it become one of the most well-known meme stocks in Singapore.
Wendys
Wendys is a fast food company founded in 1969. The company is best known for its hamburgers and its signature Frosty dessert.
In May 2020, Wendys announced that it had agreed to go public through a merger with unique purpose acquisition company (SPAC) Advent International. Their stocks began trading on the Nasdaq in June 2020.
Workhorse Group Inc.
Workhorse Group Inc. is an electric vehicle and drone technology company. The company was founded in 2007, and its stock began trading on the Nasdaq in October 2020.
In November 2020, Workhorse’s stock price surged after the company announced that it had received an SGD350 million investment from private equity firm ST Capital. The deal was announced just days after Workhorse had missed out on a government contract to build electric delivery vans for the United States Postal Service.
The stock price peaked at over SGD30 per share before crashing to below SGD10 per share in early 2021.
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