GameStop

Roaring Kitty

Saga

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<p class="has-drop-cap">Thanks to Keith Gill, the <a href="https://tokenist.com/investing/meme-stocks/" rel="noopener noreferrer nofollow" class="deco-link">meme stock segment</a> of the US stock market just got more complicated. Otherwise known as Roaring Kitty on X, or r/DeepFu*kingValue on Reddit, the social media personality/investor was one of the key figures behind the GameStop (NYSE: GME) <a href="https://tokenist.com/investing/short-interest/" rel="noopener noreferrer nofollow" class="deco-link">short squeeze</a> in early 2021.&nbsp;</p>
<p>Following <a href="https://tokenist.com/why-the-meme-stock-rally-was-shorter-this-time-and-who-benefited-the-most/" rel="noopener noreferrer nofollow" class="deco-link">Gill’s social media resurgence</a>, a repeat of that action played out in mid-May, although subdued. A snapshot percolated across social media from Sunday to Monday, triggering another GME stock price spike, from $23.14 to $39.85 per share. The purported account snapshot from Reddit’s r/Superstonk subreddit showed Gill holding 5 million GME shares, worth around $115.7 million on Friday.</p>
<p>More importantly, the snapshot showed Gill’s 120,000 GME call options at a strike price of $20 with an expiry date of June 21st. The purchase price of these contracts was at ~$5.68 per share, potentially netting $6.8 million at the time.</p>
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<p>The implication of Keith Gill’s significant ownership of GME stock leads to previous buying of <a href="https://tokenist.com/investing/call-option/" rel="noopener noreferrer nofollow" class="deco-link">call options</a>. Once the GME stock skyrocketed as he emerged on social media, a likely scenario would entail selling call options and buying GME shares again after the initial bubble burst.</p>
<p>Doing so repeatedly would have ballooned his portfolio. As seen by <a aria-label=" (opens in a new tab)" href="https://x.com/unusual_whales/status/1797440467078111645" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">@unusual_whales</a>’s tracking, these GME calls amounted to $65.7 million. In other words, Gill’s whale status introduced so much volatility that GameStop decided to halt GME trading today, having skyrocketed by 72% in aftermarket opening.</p>
<p>Putting aside the legality of Keith Gill pumping his bags at the expense of retail traders, should investors watch other meme stocks to mimic his success? Here are some prospective candidates.</p>
<h3 id="trump-media-technology-group-corp-nasdaq-djt">Trump Media &amp; Technology Group Corp. (NASDAQ: DJT)</h3>
<p>Former President Trump’s conviction in NY court greatly boosted his campaign. According to @LeadingReport, Trump’s campaign broke all funding records at just over $200 million after the verdict. This is unsurprising because the verdict was primarily perceived as a subversion of the legal system to pursue short-term political gains.</p>
<p>Case in point, one of the most viral tweets addressing the issue received nearly 73 million views.</p>
<blockquote class="twitter-tweet">
 <p lang="en" dir="ltr">The first felony conviction of a former US President wasn’t for the Iraq or Afghanistan wars, illegal CIA coups, drone striking weddings, or spying on Americans…<br><br>It was because Trump misclassified a $130,000 payment for a porn star’s NDA.<br><br>Tells you everything you need to know.</p>— Geiger Capital (@Geiger_Capital) <a href="https://twitter.com/Geiger_Capital/status/1796348525523144862?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">May 31, 2024</a>
</blockquote>
<p>Simultaneously, Trump’s social media company, under ticker DJT, closed 5% down on Friday after a brief spike to $53.50 per share. At $48.85, DJT stock is still far from the 52-week high of $79.38.</p>
<p>Considering the ramp-up of political tensions ahead of the presidential elections and Trump’s more active social media engagement signaled from his first TikTok post, traders should expect more upswing volatility from the present DJT weakness.</p>
<p>However, traders should be agile because timing is everything in the meme stock market.</p>
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<h3 id="beyond-meat-nasdaq-bynd">Beyond Meat (NASDAQ: BYND)</h3>
<p>Considering its weak fundamentals, Beyond Meat performed surprisingly well, losing only 4.5% of the value YTD. The company continues to struggle against its main obstacle—expensive meat substitutes against the cheaper real thing. This price disparity is compounded by the novelty of substituting meat in the first place.</p>
<p>At a time when plant-based meats in general are <a href="https://gfi.org/marketresearch/#plant-based-meat" target="_blank" aria-label=" (opens in a new tab)" rel="noopener noreferrer nofollow" class="deco-link">down 19%</a> YoY, this is not a positive signal. However, the company is yet to utilize the rollout of more competitive products, the <a href="https://www.beyondmeat.com/en-US/press/beyond-meat-expands-foodservice-portfolio-with-the-fourth-generation-beyond-burger-and-new-beyond-crispy-nuggets" target="_blank" aria-label=" (opens in a new tab)" rel="noopener noreferrer nofollow" class="deco-link">Beyond IV</a> burgers and beef.</p>
<p>Having shifted from maligned canola oil to avocado oil, the gen-4 products neutralize the main critique of relying on seed oils. If claims of having the “meatiest, juiciest” burgers align with the public reception, BYND could hit previous highs.</p>
<p>In <a aria-label=" (opens in a new tab)" href="https://investors.beyondmeat.com/node/11886/pdf" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">May’s earnings report</a>, Beyond Meat’s CTO hinted at debt or equity funding to power through the revenue bleed. The company would need more capital to extend the runway after a net revenue decline of 18% YoY and a net loss of $54.4 million in Q1’24. Beyond Meat’s <a href="https://tokenist.com/investing/debt-to-equity-ratio/" rel="noopener noreferrer nofollow" class="deco-link">debt-to-equity ratio</a> is holding at a relatively high -2.</p>
<p>Nonetheless, if Beyond Meat’s most recent rollout turns the fortunes around, investors could reap big gains. The company’s all-time high was $234 in July 2019 and $19.25 at its 52-week high. At $7.8 per share, BYND stock is closer to its 52-week low of $5.58, making a solid entry for gen-4 burger speculation.</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe>
<p><strong><em>Do you prefer exposure in memecoins or meme stocks for risky investment adventures? Let us know in the comments below.</em></strong></p>
<p><em>Disclaimer: The author does not hold or have a position in any securities discussed in the article.</em></p>
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/2-meme-stocks-to-watch-as-the-gamestop-saga-kicks-off-again/">2 Meme Stocks to Watch as the GameStop Saga Kicks Off Again</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

2 Meme Stocks to Watch as the GameStop Saga Kicks Off Again

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