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Beyond AMC and GME: Meme ETF's Top Stocks for Early 2022

Today, Wall Street Memes breaks down the latest portfolio changes in Roundhill Investment’s Meme ETF. Could any of them head to the moon this month?

Starting recently, we here at Wall Street Memes have been tracking the Meme ETF MEME. Managed by Roundhill Investments, this exchange-traded fund tracks the performance of the top meme stocks.

The fund updates its allocation every 14 days, based upon the following methodology:

  • First, the ETF assigns a large universe of stocks a “social media activity score,” based upon social media mentions, and selects the top 50 names.
  • Then, from the list of 50, it ranks them based upon short interest, whittling the list down to the top 25 by percentage of shares sold short.

Top 20 meme stocks

Last month, the top 3 holdings were Roku (ROKU), Digital World Acquisition (DWAC), and Teladoc Health (TDOC). As of Jan 13, these are the top 20 holdings of the Roundhill Meme ETF:

Figure 1: MEME ETF allocation.

Figure 1: MEME ETF allocation.

As you can see, only DWAC remains in the top three, with its allocation upped to 5.8%. ROKU has fallen off the list completely, with TDOC dropping out of the top 10.

Carnival ( (CCL) - Get Carnival Corporation Report) and Lucid Group ( (LCID) - Get Lucid Group, Inc. Report) now take the second and third spots, with 5.0% and 4.8% allocation, respectively. Neither name made the top 20 when we last tracked the fund late last month.

Besides ROKU, another drop off that stands out is AMC Entertainment ( (AMC) - Get AMC Entertainment Holdings, Inc. Class A Report) stock. While still tracked by the ETF, it's no longer in the top 20. It looks like the renewed buzz stemming from the debut “Spider-Man: No Way Home” has worn off.

Since the start of the new year, AMC stock has seen another sharp slide in price, dropping from $26.52 per share on Jan 3, to around $20 per share today.

MEME: a few unexpected names

Other meme stocks that have made it into the top 20 include American Airlines (AAL), Cassava Sciences (SAVA), Nikola (NKLA), Grocery Outlet Holding Corp. (GO). FuboTV (FUBO) and Novavax (NVAX) have also joined the list.

Among these add-ons, a few stand out. First, AAL stock. Shares of the US airline took a dive in late November, as the omicron variant of Covid-19 began to make headlines. However, it has bounced back in recent weeks. Meme traders could be wagering that omicron does not disrupt the legacy airline’s pandemic recovery.

Biotech company Cassava Sciences is another notable addition. It has traded sideways in recent weeks, but remains a popular meme play. Its high short interest, plus the prospects of its main drug candidate, Alzheimer’s treatment Simulfilam, getting approval could result in SAVA stock rocketing “to the moon” once again.

Grocery Outlet Holding, which operates discount supermarkets primarily on the West Coast, is another interesting addition. A check on ApeWisdom.io shows only a modest level of r/WallStreetBets mentions in the past 24 hours. Per data from Fintel.io, short interest for GO stock is moderate. Only 9.97% of its outstanding float is sold short.

Twitter speaks

Of the top stocks in the MEME ETF in January, would you be more willing to bet on “blue chip memes” like GME; “other classic memes” like Tilray and BlackBerry; or “new additions” like American Airlines and Carnival?

(Read more from Wall Street Memes: Is Bed Bath & Beyond Stock The Next Short Squeeze?)

(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report. Also, the article may contain affiliate links. These partnerships do not influence editorial content. Thanks for supporting the Wall Street Memes)