The 2025 Millionaire’s Club: 3 Meme Stocks to Buy Now

Stocks to buy

After being quiet for a few years, meme stocks to buy are back because of all the excitement over the return of “Roaring Kitty” and his first social media post in almost three years, which sent GameStop’s (NYSE:GME) stock price up by as much as 110% before leveling off, sparking interest in buying meme stocks again.

Along with GameStop, other meme stocks to buy are also up sharply, like AMC (NYSE:AMC). Soon after Gill’s post, the price of AMC’s stock more than doubled. This shows that small buyers can still coordinate the market’s movements.

Even though the market is very excited right now, it’s important to remember the warnings that well-known experts like Gary Shilling have given; there are predictions of a possible slowdown by the end of 2024, which could cause the market to drop 30%.

On the other hand, John Hussman thinks the S&P 500 will drop 65% and compares it to 1929 thanks to high prices and negative market internals, two of the main signs of a market downturn.

On the other hand, JPMorgan thinks the S&P 500 will fall 8% due to high prices, aging business cycles, and rising debt costs.

Despite this, if you still want to buy meme stocks, stick with the bigger companies like AMC and GameStop. Both of these businesses are selling shares to improve their balance sheets and pay down debt.

GameStop (GME)

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GameStop Corp is the quintessential meme stock. In 2021, the r/WallStreetBets community on Reddit organized a rally, and now “Roaring Kitty,” legal name Keith Gill, is back. His return helped GME close higher by more than 74% following his reappearance.

GME is capitalizing on this rally. After hours following the announcement, the ailing video game retailer sold 45 million shares in an “at-the-market” offering to generate $933.4 million, driving its shares up over 12%.

Even big investors are engaged. Robert F. Kennedy Jr. declared his $24,000 GameStop investment to support the “ape” retail investor group, which opposes institutional investors.

Despite the anti-establishment tendency, the current earnings announcement does not justify GME stock’s 2021 rise.

GameStop’s fourth quarter and fiscal year 2023 net revenues fell, unsurprising since online gaming sales climbed 10% last year to nearly $26 billion, and the retail sector is still struggling to compete.

Those wishing to purchase meme stocks may find GameStop the ideal place to capitalize on the new meme stock boom sparked by “Roaring Kitty.”

AMC Entertainment Holdings (AMC)

Source: T. Schneider / Shutterstock.com

AMC Entertainment Holdings is riding the meme stock surge like GameStop, thanks to Keith Gill’s reemergence on social media; on the day he came back, the stock jumped 78% to close at $5.19.

To cash in on the boom, the theater giant offered 72.5 million shares for $3.45 each in a $250 million stock offering.

After the news broke, AMC shares fluctuated, beginning at $3.52 and peaking at $5.88 before closing at $5.19, up 78%, illustrating the volatility of meme stocks to buy.

The $250 million that AMC got from the stock sales is very helpful for the company as it continues to heal from the effects of the COVID-19 plague on the theater business. Big banks like Citigroup and Goldman Sachs took part in the stock sale, which shows that AMC’s efforts to raise money have strong backing from large financial institutions.

The capital will help introduce new theatres and initiatives but, more importantly, pay down debt; AMC owes about $4.6 billion, and large chunks of that are due in 2026.

AMC has to pay about $100 million in interest every three months, which greatly affects its ability to make money. Plus, due to the slow rebound of the box office after the pandemic, the company is having trouble paying operational expenses; however, AMC remains one of the best candidates among meme stocks for a rally.

Trump Media & Technology Group (DJT)

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Even though Trump Media & Technology Group (NASDAQ:DJT) stock has reported big losses and a “going concern” warning, it still attracts buyers. On its public debut, the stock went up to almost $80. After that, it oscillated between $23 and $66.

Trump Media recorded a big financial loss of $12.1 million for the first quarter of 2024. This notwithstanding, the business’s stock has been somewhat unstable, with shares briefly rising after the news. Based on its first-quarter sales of only $770,000 and losses of $327 million, the company’s finances look precarious.

In addition, the U.S. Securities and Exchange Commission charged Trump Media’s auditor with “massive fraud” involving more than 1,500 false returns, leading to $14 million in legal fines and a ban from practicing for good.

However, buying in DJT stock will still be appealing because it’s election year, and the political prospects of Donald Trump and his supporters will continue to affect DJT stock until at least Nov. 5.

On the date of publication, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.

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