After a hiatus in the previous months, meme mania took center stage again in June. Reddit forums have returned to the headlines, as meme stock price action was very much influenced by the sentiment of the “apes” over the past few weeks.
Today, Wall Street Memes reviews the performance of 5 of the most talked-about meme stocks in June, in order of monthly returns.
#1. $AMC - AMC Entertainment Holdings
One of the most cherished meme stocks, AMC has been a curious case study. Notice how the volume of predominantly positive comments in early June seems to have served as a leading indicator of what happened to share price later in the year.
After the first week of last month, AMC’s performance became a little detached from the volume of Reddit comments. The buzz around AMC dropped sharply, especially after June 21. AMC stock price, however, remained elevated, at or above $55.
- AMC grew 79% in June, starting July at $57.
- Short float of 17% (data from June 14).
(Read more from Wall Street Memes: Brace For The Mother Of All Short Squeezes)
#2. $CLOV - Clover Health
Tennessee-based company Clover Health, a meme stock born in June, had an excellent month. Its performance almost perfectly mirrored the volume of comments on Reddit.
Apparently, and maybe not much of a surprise to “the moon gang”, the company's fundamentals did not change materially to justify CLOV’s jaw-dropping June rally and subsequent pullback.
- CLOV grew 72% in June, starting July at $13.
- Short float of 10% (data Jun 14).
(Read more from Wall Street Memes: The Next Big Short Squeeze?)
#3. $WISH - ContextLogic (Wish)
E-commerce platform Wish, also a newly born meme stock, was yet another that saw its stock spike by roughly 70%. The volume of comments shot through the roof around June 18, reinforcing a rally that had been forming since earlier in the month.
In this case, business fundamentals may have at least played a minor role. Improved trader sentiment could be justified by new data on the digital retail channel that shows resilience in e-commerce, even after the reopening of the global economies and brick-and-mortar stores.
- WISH grew 70% in June, starting July at $13.
- 12% short float (data Jun 14).
(Read more from Wall Street Memes: Is ContextLogic The New Meme On The Block?)
#4. $CLNE - Clean Energy Fuels
Clean Energy Fuel, the largest US provider of clean energy for the transportation industry, became a hot topic within the ape community during the month of June.
During the second week, shares popped by 70% and peaked at $13, in line with the volume of comments on Reddit's forums. Meanwhile, Wall Street analysts have a consensus buy rating on the stock with a target price of $17 – for a potential upside of yet another 70% from here.
- CLNE grew by 26% in June, starting July with its shares valued at $10.
- Short float of 6% (data Jun 14).
#5. $BB - BlackBerry Ltd
Canadian cybersecurity company and former mobile phone powerhouse BlackBerry was one of the most talked about meme stock in early June. With a barrage of positive comments through the first week, the stock spiked 37% in the first days of the month.
However, BB shares lost momentum as soon as Reddit cooled down on the chatter. By the end of June, BlackBerry stock had climbed “only” 5% for the month. Apparently, nothing about the company's fundamentals seems to have justified the level of share price action in June.
- BB grew 5% in June, starting July at $12.
- 7% short float (data Jun 14).
Of the top 5 meme stocks listed above, which is your favorite to trade in the month of July?
(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 Wall Street Memes)