Gamestop Spikes 75% as Roaring Kitty Back on Social Media
2 ETFs to gain exposure on meme stocks.
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Hold on tight! GameStop sent shockwaves through the market on Monday as its shares spiked an incredible 75%, leaving investors in awe. Meanwhile, the Dow Jones Industrial Average (DJI) put an end to its winning streak. Get ready for a whirlwind recap of this thrilling event and the reasons why it demands your attention.
What is Happening
The frenzy in meme stocks traces back to Keith Gill, aka "Roaring Kitty" on YouTube and "DeepF***ingValue" on Reddit. Gill's social media bomb set off a buying spree, propelling GameStop's shares to more than double in value during Monday's trading session.
But it didn't stop there—other heavily shorted stocks joined the rally as retail traders aimed to trigger short squeezes and send prices soaring. AMC Entertainment Holdings Inc, Koss Corp, Tupperware Brands Corp, VinFast Auto Ltd, and BlackBerry Ltd were among the top contenders in this thrilling saga. Notable movers also included Beyond Meat Inc, Plug Power Inc, QuantumScape Corp, IRobot Corp, and Newegg Commerce Inc.
What You Need to Know
Now, why is all this important? If you want to stay ahead of the game, understanding the dynamics of these meme stocks is crucial. By keeping an eye on heavily shorted stocks or those with high borrowing costs, you can identify potential opportunities. However, it's important to note that meme stocks are known for their volatility and unpredictable price movements. Investors should exercise caution and be prepared for rapid fluctuations in value.
Getting meme stocks exposure through ETFs
In addition to individual meme stocks, investing in meme-stock-related exchange-traded funds (ETFs) provides a way to participate in the excitement and potential high returns. Here are two notable options:
Schwab Crypto Thematic ETF (NYSE:STCE): This ETF not only invests in cryptocurrency companies but also includes meme-related stocks, blending digital finance with viral market trends.
SoFi Social 50 ETF (NYSE:SFYF): This ETF tracks the top 50 stocks held in SoFi's self-directed accounts, highlighting popular choices among retail investors, including frequent meme stock picks.
Summary
By considering these ETFs, you can gain exposure to the meme stock phenomenon while diversifying your investment portfolio.
Buckle up and get ready for the meme stock rollercoaster—it's a thrilling ride you won't want to miss! Just remember to approach it with caution due to the inherent volatility of meme stocks.
However, it's important to note that meme stocks are known for their volatility and unpredictable price movements. Investors should exercise caution and be prepared for rapid fluctuations in value.
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Disclaimer: This article constitutes the author’s personal views and is for entertainment and educational purposes only. It is not to be construed as financial advice in any form. Please do your own research and seek advice from a qualified financial advisor. From time to time, I have positions in all or some of the mentioned stocks when publishing this article. This is a disclosure - not a recommendation to buy or sell stocks.