Meme Stocks are Back

• (1:00) - Breaking Down The Market Rally: Is It Here To Stay?

• (11:50) - Are The FAANG Still Strong Long Term Investments?

• (20:10) - Where Should Investors Be Looking For New Trades?

• (27:45) - Episode Roundup: GME, AMC, BBBY, FB, AAPL, CVX, GSL, SQ

• Podcast@Zacks.com

 

Welcome to Episode #308 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

This week Zacks Stock Strategist, Bryan Hayes, making his first ever appearance on the podcast, joins the show to discuss what is going on with the stock market, especially in the more speculative stocks, such as the meme stocks.

You remember those, right?

Gamestop, AMC Entertainment and Bed Bath & Beyond, just to name three. In 2021, all three soared to new multi-year highs, led by a group of traders off of Reddit and Wall Street Bets.

It seemed like the recent bear correction might have wiped away the trading in the meme stocks but in the last two weeks of March, they have made a triumphant comeback.

But they aren’t the only ones. The “sure thing” FANGMAN stocks, including Apple and Meta Platforms, have also rallied off recent lows.

Should investors be jumping in?

Meme Stocks are Back

1.       GameStop GME

GameStop shares have surged 45.9% over the last month and are up 27.6% in just the last 5 days. However, over the last year, they’re still down 0.6%.

Long gone are the days when GameStop soared over 5,000% but if you bought 2 years ago, you’d still be up 4,163%.

Is GameStop back in favor among the memesters?

2.       AMC Entertainment AMC

AMC Entertainment used to be simply a movie theater chain but shares are up 717% over the last 2 years after the memesters jumped in.

Shares have surged 62% over the last 5 days and are up 56% over the last month.

AMC Entertainment is expected to lose $0.56 per share this year but that’s an improvement over the $2.50 per share loss in 2021. Consumers are slowly returning to the movie theater and Hollywood has a big slate of movies set to open in 2022.

Is it too late to trade AMC?

3.       Bed Bath & Beyond BBBY

Bed Bath & Beyond is a meme stock but it’s not as widely followed as GameStop and AMC.

Shares of Bed Bath & Beyond have soared 61% over the last month and are up 25% in just the last 5 sessions.

Over the last year, however, shares are still down 6.9%.

Is Bed Bath & Beyond too hot to handle, even for traders?

Is it Time to Get Back into FANGMAN Stocks?

In addition to the meme stocks, and cryptocurrencies also rallying big, the good, old big cap standbys, the FANGMAN stocks, have also rebounded.

1.       Apple AAPL

Apple shares were down 10% year-to-date at one point during the recent correction. But they have swiftly turned around.

Over the last month, Apple has gained 8.4% and is now up 0.8% year-to-date. So much for that buying opportunity.

Apple shares remain expensive on a forward P/E basis. Earlier in the year, the forward P/E fell to 26, but it has now jumped back to 28.5 as the shares have rallied.

Will Apple be making new highs soon?

2.       Meta Platforms FB

Meta Platforms, on the other hand, remains cheap. It trades with a forward P/E of 17.7, making it the cheapest of the FANGMAN stocks on a P/E basis.

But Meta Platforms is also up off the 2022 lows, gaining 8.9% in the last month. However, unlike Apple, Meta Platforms remains down for the year, falling 32% year-to-date.

Should investors be buying Meta Platforms on the rebound?

What Else Do You Need to Know about this Stock Market Rebound?   

Tune into this week’s podcast to find out.

[In full disclosure, Tracey owns shares of FB in her personal portfolio.]

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Apple Inc. (AAPL) : Free Stock Analysis Report
 
GameStop Corp. (GME) : Free Stock Analysis Report
 
Bed Bath & Beyond Inc. (BBBY) : Free Stock Analysis Report
 
Meta Platforms, Inc. (FB) : Free Stock Analysis Report
 
AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report
 
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