5 Best Meme Stocks to Buy in August 2021

Meme stocks have become incredibly popular in 2021, with previously struggling companies posting record-shattering returns. These lucrative returns have drawn several investors into the social media-fueled stock market space, and the once-disregarded industry is gradually gaining momentum.

However, meme stocks are known for their high volatility, and it could be risky trading them. This article explores five of the best meme stocks to buy, given their relative performance in the last eight months and their likelihood to generate more returns as retail investors continue to rebel against market fundamentals.

1. GameStop (GME)

GameStop is a consumer electronics firm and is one of the largest video game retailers in the world. It also operates an e-commerce platform and thousands of physical stores where game lovers can stroll in and purchase video games.

However, since 2021, GameStop has gained notoriety for being the fuel behind the meme stock revolution. Prompted by a Reddit-fueled retail investors’ standoff with hedge funds companies, the GME stock surged more than 1,000% within a week.

This was led by the popular subreddit r/wallstreetbets, which rallied several members of its group to buy up shares of the struggling company, thereby forcing hedge funds and Wall Street investors to buy more as the prices rose to cover up their position.

This singular incident led to the company staying afloat after recording $63 million in losses in its third quarter of 2020. GME stock surged to a remarkable $483 rising more than 2,000%. Even though it has since dipped, GME is still one of the best meme stocks to buy, given its current financials.

Its Q1 earnings grew 25% year-over-year to $1.3 billion. It also generated $1 billion from strategic de-densification efforts and closures of its stores in Europe. The extra funds are expected to invest in growth and maintain a strong balance sheet.

With a current price peg of $159.45, GME is up 900% year-to-date (YTD), trading above its Dec. 2020 low of $18.83.

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2. American Multi-Cinema (AMC)

American Multi-Cinema Entertainment Holdings Inc., better known as AMC, was also a beneficiary of the social media buying frenzy that characterized the early days.

Focused on movie exhibitions, the US company has been hard hit by the mandatory lockdown of its viewing centers spread across the globe.

It previously contemplated declaring bankruptcy as revenue streams dried and more movie viewers turned to streaming services like Netflix and Disney plus. However, the GameStop saga briefly served as a buoy as the company saw its share price recover a large part of its losses twelve months previously.

With restriction enforcements currently on a low, AMC stock is gradually picking up, and company CEO Adam Aron has hailed its Q2, 2021 as “transformational,” following more capital raises. Although its revenue is still below pre-pandemic figures, AMC’s share price rose 10% on Tuesday.

This has helped AMC erase a large part of its share losses in 2020, with the movie company shedding 94 cents against $5.38 in the 2020 quarter. However, it has risen over 640% in the last twelve months with a current price peg of $33.50.

AMC’s remarkable returns from its exhibition of The Fast & Furious franchise show that it is one of the best meme stocks to buy this month.

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3. Palantir Technologies (PLTR)

Palantir’s strong fundamentals make it one of the best meme stocks to buy this year. Following on the back of major partnerships, the enterprise data platform has recently partnered with the Federal Aviation Administration (FAA) to provide a data analytics tool for the agency’s drive to advance aviation safety.

PLTR stock currently trades at $22.95, up by 0.087%. On July 26, Palantir announced a collaboration with the US Department of Health and Human Services to support its Covid-19 vaccine distribution for another year. Partnerships have mainly led its growth with the US government.

This was in the sequel to a mid-2020 agreement to build Tiberius, a software platform that tracks vaccine production, distribution, and administration across the US. Its Q1 total revenue grew 49% year-over-year to $341 million, while its US commercial revenue shot up 72%.

US government revenue surged by 83%, while its cash flow from operations rose 34% to $404 million, showing an adjusted free cash flow of $441 million and a 44% margin increase.

Its Q2 outlook is promising as the company says it would be expecting $360 million in revenue.

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4. Virgin Galactic Company (SPCE)

Spaceflight and US commercial services company Virgin Galactic Company are among the best meme stocks to buy this month. In summary, Virgin Galactic, a subsidiary of the Virgin Group, aims to make spaceflight a reality.

While traditional travel industries look to be losing investor interest, retail investors are picking up on long-term space players. Virgin Galactic’s foray into this field has placed it in investors’ sights.

Trading at $31.39, SPCE stock has continued to see interests following the space company’s recent milestone. Virgin Galactic recently completed its first fully crewed flight to space.

Less than a month after, the company is already eyeing a second trip outside the atmosphere with former CEO George Whitesides on deck. With more advancements in space travel, Virgin Galactic’s remarkable feats have several investors thinking of buying its stock while it is low.

Even though space travel will likely take some time before becoming a reality, investors are thrilled by the prospects it represents.

67% of all retail investor accounts lose money when trading CFDs with this provider.

5. Nokia Corporation (NOK)

Nokia has been in the heat of this year’s meme stock saga after the famous r/WallStreetBets investors targeted its share price. The company, which focuses on telecommunication services, is a multinational information technology and consumer electronics company.

This sees it offer a dynamic portfolio of network equipment and services. Also, it is a well-known partner for several critical networks and handles intellectual property services and long-term research.

At press time, NOK stock is trading at $6.03 and is up 40% year-to-date (YTD). However, Nokia is an exciting meme stock to add to your portfolio, given its growing foray in the 5G race.

In a recent announcement, Nokia and TPG Telecom noted that they have switched on a live 5G standalone network in Australia on the 700 MHz spectrum band. According to Nokia CTO Robert Joyce, this collaboration will provide wide area coverage for both company customers.

67% of all retail investor accounts lose money when trading CFDs with this provider.