The trend of meme stocks is staging a comeback at a time when the stock market is consistently hitting unprecedented highs. This revival seems to be powered by positive economic data, ongoing trade agreements, and the prediction of forthcoming lenient monetary policies by the Federal Reserve. Concurrently, the ongoing earnings season is proving to be another driving force for the stock market, particularly as technology giants are all set to reveal their financial reports in the midst of the ongoing wave of technological advancements and considerable investments pouring into the United States.
Although the atmosphere is distinctly optimistic, it doesn’t essentially signal an inflated market. A significant proportion of capital is being diverted from safer investments, indicating an overflow of funds available for investment. This could potentially bode well for the overall market. However, traders who aim to profit hastily from the ensuing meme stock surge may face the hazard of ending up stuck with substantial losses.
This batch of high-risk stocks has witnessed frenzied trading activity, welcoming a few fresh entrants that have been highlighted on various social media platforms. These comprise Opendoor Technologies (OPEN), QuantumScape (QS), Krispy Kreme (DNUT), GoPro (GPRO), and Beyond Meat (BYND). Opendoor (OPEN), for instance, was valued merely at $0.50 at the beginning of this month, but its price has astonishingly jumped by over 460% to more than $3, only to start retreating afterwards.
The digital real estate stock experienced a precipitous 10% drop during a highly unstable trading session earlier yesterday. Furthermore, it is observing a further 7% drop in aftermarket trading. Despite progress in operations and manipulation of costs, the company continues to maintain high liabilities, is not turning a profit, and carries the inherent risks associated with the volatile real estate market.
The company’s earnings report, which is due on August 5th, may contribute to additional volatility. A favorable report may stimulate yet another surge in the share price, while any disappointment might lead to a significant downfall. Some of the original meme stocks have also resurfaced, such as Kohl’s (KSS), which has become a favored choice among retail investors due to its high level of borrowed shares awaiting a return.
The share price of this department store chain saw a remarkable 38% rise on Tuesday. This trading session, characterized by a surge in trading volume, pushed the stock’s price to its highest level since November of 2024. Other stocks within the broader meme stocks group have observed modest gains as well, including Koss Corporation (KOSS), Clover Health (CLOV), and Mullen Automotive (MULN), extending to Avis (CAR), Cyngn (CYN), MicroAlgo (MLGO).
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