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Meme ETF: These Could Be The Next Winners In March

Here are the Meme ETF’s top holdings as of the start of March. Are these good bets today?

Since December 2021, we have been covering the Meme ETF MEME. This is a fund that invests in the next meme stories. Roundhill’s ETF diversifies beyond the traditional “blue chip meme” names like AMC  (AMC) - Get AMC Entertainment Holdings Inc. Class A Report and GameStop  (GME) - Get GameStop Corporation Report.

Today, Wall Street Memes looks at the fund’s top holdings at the start of March. Could any of these be the next successful meme stock?

Figure 1: Meme ETF: These Could Be The Next Winners In March

Figure 1: Meme ETF: These Could Be The Next Winners In March

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MEME ETF: the methodology

As a quick recap, the Meme ETF picks its stocks based on the following methodology:

  1. Start from a large universe of potential candidates and assign them a social media activity score. This is basically an approach to narrow in on the most popular and most frequently mentioned stocks on certain social media platforms.
  2. Rank the top 50 most popular stocks based on short interest, from high to low. This step screens for short squeeze potential.
  3. Of the 50 names above, pick the top 25 stocks for the ETF.
  4. Repeat the process every 14 days.

Top meme stocks today

Below is a pie chart that depicts MEME’s top 10 holdings as of March 3 of 2022.

Figure 2: Top MEME ETF Holdings, March 3.

Figure 2: Top MEME ETF Holdings, March 3.

First, notice how the allocations are pretty well distributed, and no single holdings accounts for 5% or more of the portfolio. Also notice how AMC stock pops up among the top 10 names, but GameStop stock does not — it is only the 13th largest holding.

At the top of the list is Upstart stock  (UPST) - Get Upstart Holdings Inc. Report. While the share price is down 6% today, as I write this sentence, UPST has jumped a whopping 40% since February 15.

To credit was a very upbeat earnings report that we covered in some detail a few days ago. A short squeeze may have played a role here. But beyond meme enthusiasm, we think that this company has strong business fundamentals that should not be brushed aside.

SOFI  (SOFI) - Get SoFi Technologies Inc. Report and Affirm stocks  (AFRM) - Get Affirm Holdings Inc. Report are also among the Meme ETF’s top 5 holdings. It is interesting to see shares of fintech companies feature within Roundhill’s group of top meme bets of the month.

Outside the top 10, there is a diversified group of stocks in sectors that range from electric vehicles to cannabis. On the former, both Rivian  (RIVN) - Get Rivian Automotive Inc. Report and Lucid stocks  (LCID) - Get Lucid Group Inc. Report show up. Lucid has recently delivered unimpressive production estimates, and the stock has been hurting.

There is also some overlap between MEME’s holdings and some of ARK investor Cathie Wood’s favorite stocks. Among these are Teladoc  (TDOC) - Get Teladoc Health Inc. Report, Block  (SQ) - Get Block Inc. Class A Report and DraftKings  (DKNG) - Get DraftKings Inc. Report.

Twitter speaks

Which of the following pair of stocks (all of them among the Meme ETF’s current holdings) would you most likely buy today and hold for the next 12 months?

(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)