Investors appear to be back making speculative bets and giving rise to meme stocks following the recent selloff in the stock market. Bed Bath & Beyond (BBBY), Pagaya Technologies (PGY), and AMTD Digital (HKD) have soared recently amid a meme stock-type rally.
What Are Meme Stocks Right Now?
Bed Bath & Beyond has emerged as the face of the latest meme stock rally. The company operates a chain of retail stores that sell home goods such as bedding and kitchen items. BBBY stock has gained more than 400% over the past month to trade at about $25. According to TipRanks’ consensus rating, the stock is a Strong Sell based on two Holds and 11 Sells. The BBBY stock target price of $3.84 implies 81% downside potential.
Israel-based Pagaya Technologies has also become a favorite of speculative investors. The company offers an AI-powered solution that helps lenders make loan approval decisions. Its partners include SoFi Technologies (SOFI), Visa (V), and Upgrade. Pagaya went public through a SPAC merger in June, with the stock opening at about $7 on the first day. PGY stock has gained more than 700% over the past month to trade above $20.
The AMTD Digital rally has all the features of a meme stock. About two weeks after the Asian fintech provider’s IPO, the HKD stock surged about 14,000% to a $2,550 peak without any meaningful driver. The stock has since retreated from that peak but remains volatile amid speculative trades.
Apart from BBBY, PGY, and HKD, more meme stocks should emerge as investors turn to speculative trades to bet on the market recovery. The rally in some of the most well-known meme stocks was caused by short squeezes.
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