The 7 Best Meme Stocks on Your November Buy List
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The world of meme stocks isn’t as bad as some people think.Yes, part of stock-related memes and conversations on social media sites such as Reddit Will always contain dubious suggestions. But if investors generally ignore these options, they risk throwing the baby out with the bathwater.
I generally do not support investing game station (New York Stock Exchange:GME) or asset management company (New York Stock Exchange:asset management company), two names that contributed to the phenomenon earlier this year. However, the information traded on message boards and forums isn’t just “moonshots.” Meme stocks can also contain real stocks to watch, rather than just looking for a short squeeze. That said, these online communities offer legitimate stocks with sound underlying investment cases.
So, in my opinion, the following seven stocks are worth your consideration. Yes, they are riskier than many other conservative investments. But they do have a lot of things that make them fundamentally appealing—both in terms of real catalysts and financially quantifiable achievements.
- pirate ship game (Nasdaq:CSR)
- Virgin Galactic (New York Stock Exchange:SPCE)
- Palantir (New York Stock Exchange:PLTR)
- digital world collection (Nasdaq:DWAC)
- sober (Nasdaq:LCD Monitor)
- AMD (Nasdaq:AMD)
- Tesla (Nasdaq:Tesla)
Table of Contents
Meme Stock to Buy: Corsair Gaming (CRSR)
Source: WDphotography / Shutterstock.com
Corsair Gaming suffered losses when it reported earnings results on November 2. For example, the company missed its earnings-per-share (EPS) forecast of 25 cents and instead posted an EPS of 16 cents.
However, in this case, it’s worth giving CRSR stock the benefit of the doubt, in my opinion. First, the stock price has rebounded and retraced its initial losses. That could mean the market has also benefited the company from skepticism. Like many companies operating in today’s difficult logistical environment, Corsair Gaming has suffered – but that doesn’t mean it’s out of the game entirely.
Corsair’s woes were reflected in revenue, which fell 14.4% year over year in the third quarter. But the company responded by doing something important. On the one hand, it builds inventory near fulfillment centers that are geographically close to its customer base. In addition, the company refinanced long-term debt instruments, reducing debt by $24 million.
The fact that shares have rebounded so quickly suggests the market believes it’s enough for the gaming company to capitalize on even greater growth from the esports, gaming gear and content boom. Yes, the third quarter was difficult for the company. However, compared to 2020, the revenue base for this batch of meme stocks still grew by 21.6% through the first three quarters of 2021.
Virgin Galactic (SPCE)
Next on this list of meme stocks is SPCE stock. Right now, there is a very reasonable and logical argument against investing in Virgin Galactic. It was dealt a huge blow in mid-October by the news that the company would suspend flights for nine months. What is the reason for the delay? “Vehicle enhancements and modifications.”
This raises a lot of questions about broader security concerns and the company’s long-term viability. And in the short term, it shattered earlier hopes that Virgin Atlantic would start its revenue-generating commercial operations in early 2022.
SPCE shares fell 17% on the news and have traded sideways since. For contrarian investors, however, this appears to be a real opportunity. Remember, Richard Branson and his company made a successful space test flight in July.
That pushed the stock above $50. The SPCE then suffered a series of setbacks and was briefly suspended before it was finally cleared to fly again in late September following an investigation by the Federal Aviation Administration (FAA).
Founded in 2004, the company has been experimenting with commercial spaceflight for 17 years. Now it’s on the cusp of success. Yes, Virgin Galactic has suffered some setbacks. But that’s to be expected given the scale of what it’s trying to achieve.
Meme Stocks to Buy: Palantir (PLTR)
What do you expect from Palantir stock? In my opinion, PLTR stock looks pretty stable. These meme shares have traded between $20 and $28 since March. Basically, it found a market after going public in late 2020. It’s also worth mentioning from a pricing standpoint.
Palantir went public through a direct listing in late September 2020. The shares initially traded at $10 per share. So, considering they’re currently trading at around $23, they’ve been a huge success by most standards. In fact, the stock has never lost money for investors since going public — a remarkable feat, especially in an era when it went public and special purpose acquisition companies (SPACs) have been disappointing.
PLTR is a polarizing company in the polarizing era. The company emphasized its ties to the government and military early in its listing. It is a right-leaning anti-Silicon Valley analytics firm. It still is – but it’s not that important these days.
Instead, the company is simply acting like many other defense stocks because its focus is on winning contracts and ingraining itself into the public sector. Its investor relations website seems to announce a new victory every few months or less. More importantly, the company is focused on revenue growth rather than profitability.
The PLTR share price is expected to move accordingly: that is, gradually up.
Digital World Collection (DWAC)
Next on this meme stock list is Digital World Acquisition, the SPAC that brought former President Donald Trump’s social media platform — truth society – Listed. If Palantir has proven the market has an appetite for right-leaning, anti-liberal bias, then DWAC stock should do very well. In my opinion, Truth Social has the potential to be a revolution.
The platform will launch in November 2021, but initially will only be available to invited users. Then, based on current indications, the social media site is scheduled to open to all users sometime in early 2022. Right now, it’s just an invitation to join their mailing list, nothing more.
However, I sincerely doubt this name will fail. Trump is building a social platform to express his spirit. That could explode.After all, Trump is all suspended Twitter (New York Stock Exchange:TWIT) and Facebook (now meta platform (Nasdaq:Facebook)). So, now the former president is going out and building his platform.
I’ll say this: I’m not necessarily a Trump fan, but I’ll give him credit where he deserves it. He’s just a force of nature, and it’s hard to imagine that now isn’t the right time for Truth Social to grow rapidly.
Meme Stocks to Buy: Sober (LCID)
Investors have to admit — LCID stock is fast becoming an early-stage SPAC electric vehicle (EV) success story. In fact, just half a year ago, the media denounced this SPAC EV game as an investment vehicle and heralded the downfall of such companies.
E.g, Bloomberg One article stated that EV startups that chose the SPAC route lost a total of $40 billion. Forbes When its title says EVs and SPACs equate to plummeting prices, it also succinctly expresses this.
But patience is a virtue — and this meme stock is proving those prophets wrong. Most notably, Lucid recently started deliveries of its flagship Lucid Air sedan. The company only went on sale in July, and has already started rolling off its top-of-the-line Lucid Air Dream sedan. According to CEO Peter Rawlinson, to be exact, the company will produce 575 vehicles for the remainder of 2021. In addition, it plans to produce 20,000 cars next year.
Don’t be surprised to see Lucid undercut Tesla’s dominance in luxury electric sedans. Rawlinson was once Tesla’s chief engineer, although Elon Musk claims to try not to. What’s more, the Lucid Air lineup is aimed squarely at the Tesla Model S.
All in all, Lucid has proven that a focused strategy and SPAC funding are a powerful combination after all.
Advanced Micro Devices (AMD)
Advanced Micro Devices had a strong October. Specifically, AMD stock rose from just over $100 per share to $125 at the end of the month.
That’s good news, as the company this month broke with a tradition of failure it had built over the past five years.researcher Investor Plaza Contributor Brian Paradza pointed to this trend in his recent article, which correctly predicted that AMD would steer clear of this trend. The average 7% decline over the past five October has not continued. Instead, prices have surged about 25% this month.
Additionally, the company beat revenue guidance of $4.11 billion in the third quarter to a record $4.31 billion. Now, the market may be pricing in this positive news. Granted, investors want to know if AMD can continue to grow rapidly. But I believe so.Plus, it’s trading at a modest valuation Nvidia (Nasdaq:Nvidia), which has a GAAP price-to-earnings (P/E) ratio of 110.according to find alphaAMD’s GAAP P/E is more reasonable at 46, with equally huge upside.
Growth is also expected to continue. The consensus is that AMD will generate $16.1 billion in revenue this year. By 2022, this figure is expected to increase to $19.1 billion. So now there is little reason to doubt the choice of these memes.
Meme Stocks to Buy: Tesla (TSLA)
Last on this meme stock list is TSLA stock. It’s no secret that Tesla is a pioneering company. The electric car maker has a market cap that makes traditional auto stocks blush. Specifically, its market cap of $1.07 trillion is more than 4 times its market cap. Toyota (New York Stock Exchange:TM value) is $248 billion today.
This meteoric rise marked a sea change for the entire auto industry. Traditional manufacturers, including Toyota, Volkswagen (Over-the-counter market:Volkswagen), General Motors (New York Stock Exchange:General Motors) and ford (New York Stock Exchange:F) has been noted. They are rapidly adapting their product portfolio for greater adoption of electric vehicles.The impetus is simple: Tesla has proven EV stocks are trading at higher valuation higher than traditional auto stocks.
More importantly, Tesla deserves credit. It recently achieved a major milestone with an annual run rate of one million vehicles.
All in all, don’t expect TSLA stock to slow down. The company should make more than $50 billion in revenue this year. By 2022, that number could exceed $80 billion.
As of the date of publication, Alex Sirois does not hold (directly or indirectly) any positions in the securities mentioned herein.The views expressed in this article are those of the author and are subject to InvestorPlace.com Publication Guidelines.
Alex Sirois is a freelance writer for InvestorPlace whose personal stock investing style focuses on long-term, buy-and-hold, wealth-creating stock picking. He has worked in a variety of industries including e-commerce, translation, and education, and using his MBA from George Washington University brings a diverse set of skills that filter his writing.
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