Five Stocks that Could be The Next GameStop

This only further influenced the retail community to double down on its position. GameStop is one of the founding members of the meme stock movement. These are stocks that exhibit pronounced increases for reasons independent of sound fundamentals, but rather driven by hype narratives native to online communities. In retail investing lexicon, the phrase “to the moon” simply means an asset’s price is rising sharply.

Up Over 550% With More to Run, This Stock Could Be the Next GameStop

Of course, because SMCI stock is a meme stock, the gains are amplified. As we saw with AMD, data center demand is soaring so the hardware needed for them will rise as well. WallStreetBets and its followers hoped to push the price up, forcing professionals to buy in at higher prices when closing out their short positions. The strategy was similar to the one behind GameStop – silver-related assets had been shorted by professional investors. While shares did go up significantly for a few days, it wasn’t anything close to the rise of GameStop stock.

Shares opened the year under $20, then went sharply, shockingly high over a few days in late January. The peak was about $483 per share, but that didn’t last long. Our Discounted Cash Flow (DCF) analysis suggests GameStop is undervalued by 37.4%. Track this in your watchlist or portfolio, or discover 839 more undervalued stocks based on cash flows. In GameStop’s case, activist investor Ryan Cohen promised a corporate overhaul to refocus the retailer on e-commerce and other non-mall-based activities. For a brief moment, it seemed as if GameStop could relive its glory days of growth… whether in Web3 gaming or non-fungible tokens (NFTs).

Opportunities for Growth

While AMC stock may go up once consumers are ready to see movies again, there is no indication that AMC is a smart buy. Soon, novice investors downloaded the Robinhood app and made their very first trades, hoping to get in on what appeared to be a sure thing. This, coupled with the impending Bitcoin halving next year, could attract the bulls’ attention and clear the stage for a potential squeeze.

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On the date of publication, Rich Duprey did not hold (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. With the stock now trading north of $23, Palantir is up over 260% over the past year. Quite a remarkable comeback but there is still much more room to grow.

NEWS

The company estimates that by 2025, it will have established between 5 and 10 plasma centers. The third center could be up and running by April 2021, and if all the others go according to plan, the company shares could see a rise of 260% to reach a target price of $7. By 2022, the prediction is that the stock will rise by 242%. Today, meme stocks look more like traditional momentum plays. They are companies that pick up a forex trading beginners following in internet chatrooms or social media and take off from there.

The Materials Smaller Than Your Phone Worth More Than Apple

Though they dipped back to 84 cents in 2022, that still represents a three-year CAGR of 41%. Coupled with a nearly pristine balance sheet, AMD could walk the walk as well as talk the talk. Those interested in speculating should treat a Dogecoin purchase as they would any other high-risk investment – never putting more in than they can afford to lose. The perfect storm that created the GameStop buying frenzy didn’t reoccur with AMC.

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• That’s roughly the same as GameStop’s elevated 88% figure in January 2021.
• The next day, Jan. 28, shares tumbled to $48.40 a share, a 44% one-day loss.
• And TRKA stock shares have been non-compliant with Nasdaq listing requirements for far less time than beaten-down BBIG stock.
• Let’s take a look at the top stocks that might pique your interest.

The ad tech firm currently trades for a roughly $100 million market capitalization, valuing its shares at about 0.3X price-to-sales (P/S). That’s the same as GameStop’s valuation immediately before its short squeeze and about eight times lower than the average U.S. firm. In other words, it’s a siren’s call for deep-value investors looking for enormous returns. As such, the strategy of identifying stocks with a significant percentage of their float shorted, a tactic that yielded remarkable profits in 2021, remains a focal point for many. In the 2010s, GameStop faced significant financial hurdles, including mounting losses due to store closures and reduced demand for physical media.

• The thing about stocks is that you are never guaranteed about their performance yet those who have become good at making predictions have made a killing solely from stock trading.
• While AMC stock may go up once consumers are ready to see movies again, there is no indication that AMC is a smart buy.
• This event, fueled by a mix of nostalgia, financial rebellion, and speculative trading, shocked Wall Street and solidified GameStop’s place in financial history.
• In GameStop’s case, the stock is currently trading at a PE ratio of 27.3x.

Short squeeze scenarios: Identifying the next GameStop

The following three meme stocks are companies that shouldn’t be ignored. However, one of the issues with this strategy is that “silver” isn’t a precise term – especially for inexperienced investors. Activity was diluted due in part to the fact that retail investors purchased shares in a wide variety of silver-related assets. Generally, higher PE ratios can be justified by stronger expected earnings growth and lower perceived risk, while lower PE ratios might reflect slower growth prospects or higher risk. In GameStop’s case, the stock is currently trading at a PE ratio of 27.3x.

Five Stocks that Could be The Next GameStop

The chipmaker is reaping the benefits from the explosion in artificial intelligence (AI). Its data center segment is expected to generate $3.5 billion in sales this year, up from previous estimates of $2 billion. For example, Gatos Silver went up by 82 percent in a single day, causing a temporary pause in trading. PE ratios tell one story, but what if the real opportunity lies elsewhere?

Simply Wall St’s proprietary “Fair Ratio” goes a step further than basic comparisons. While industry and peer benchmarks are useful, the Fair Ratio bases its estimate on a more complete profile. It takes into account GameStop’s growth outlook, profitability, risk factors, market cap, and how its business stacks up within the sector. This tailored approach offers a clearer sense of what a “normal” PE ratio should be for GameStop specifically. The Price-to-Earnings (PE) ratio is a widely used valuation tool, especially for profitable companies like GameStop. It provides a quick snapshot of how much investors are willing to pay for each dollar of earnings, making it a useful metric for comparing companies within the same sector.

Discover 1411 companies where insiders are betting big on explosive growth. On the date of publication, Tom Yeung did not hold (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.