The Dumb Money Revival: 3 Stocks That Could Enjoy a 2024 Boom

Stocks to buy

Hedge funds have become wary of retail investors and have incorporated more social listening to manage the risk associated with short positions. But there’s still plenty of opportunity for meme stock rallies to emulate the success of old favorites. The following are likely to play a key role in a meme stock resurgence this year. 

GameStop (GME)

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Many stocks have been the subject of meme investor interest. But none have managed to become so synonymous with the investment strategy quite as much as GameStop (NYSE:GME).

Much of GameStop’s fame in recent years comes from its famous, or infamous depending on your stance, short squeeze in January 2021. That resulted in a seismic rally which saw the stock catapult over 1,500% in the span of three weeks. 

Driving this rally was Keith Gill, a stock market influencer who became a cheerleader for the stock. Despite its sharp 2021 rally and collapse from its peak market capitalization of around $28 billion, Gill has allegedly retained his stake in the video game retailer. And, he recently posted a screenshot that showed the investor held $116m worth of GME shares. In total, Gill holds around 2% of all GameStop shares. 

The fame of the 2021 meme stock rally has sent Keith Gill’s followers on X to 1.4 million, while the Reddit group r/WallStreetBets now has 16 million members. This stronger united front among retail investors could see future GameStop rallies command far more interest. 

What about the stock’s fundamentals? GameStop’s performance is a mixed bag. The retailer announced a 19.44% drop in revenue to $1.8 billion in its Q1 of 2024 earnings compared to the year prior but a 30.91% jump in profit to $63.1 million. 

AMC Entertainment (AMC)

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While GameStop commands most limelight when it comes to discussing meme stocks, it’s actually AMC Entertainment (NYSE:AMC) that underwent the strongest rally in 2021. 

During its peak in June 2021, AMC’s year-to-date (YTD) growth surpassed 2,600% in a short squeeze that spanned more than a month. 

Crucially, we’ve seen plenty of evidence that AMC Entertainment is strategic. The company knows how to cash in on retail interest and use it to generate a more sustainable business model. 

During its 2021 rally, AMC opted to use its growth to build a $2 billion war chest focused on cinema upgrades and new leases. Also, the company announced shareholder perks like free popcorn to encourage investors to hold the stock for longer. 

Further, AMC Entertainment’s 2024 rally has been no different. The cinema chain raised around $250 million of new equity capital through the sale of 72.5 million shares in an at-the-market equity offering launched in March. 

In addition, AMC posted relatively resilient Q1 earnings for the year, with total revenues decreasing slightly by 0.3% to $951.4 million. Also standing out was a significant improvement in net loss to $163.5 million, a reduction of $72 million over the previous year. 

BlackBerry (BB)

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Unlike the other stocks on this list, BlackBerry (NYSE:BB) has so far failed to ignite retail interest in 2024. The stock experienced a weaker 2021 rally and suffered losses of almost 20% over the first two quarters of this year. 

BlackBerry’s fall from grace has also been the most jarring. The mobile phone manufacturer had a strong market presence until it failed to adapt to the age of the smartphone and Apple’s iPhone dominance. This has made the stock a popular choice among meme investors for its nostalgic qualities.

However, BlackBerry may be an example of a meme stock that can double up as an innovative tech firm once again. June 2024 saw BlackBerry announce a partnership with Databricks to deliver strong AI and data-focused solutions in the world of cybersecurity. 

Also, the firm’s Q1 revenue of $373 million points to a stock that has plenty of room for growth should it begin to enter the artificial intelligence (AI) market with next-generation solutions across different industries. 

Therefore, BlackBerry may have long been the meme stock that’s lacking the same level of retail love shown to the likes of GameStop and AMC Entertainment. However, its commitment to embracing emerging technology could add more value as a buy option for retail investors ahead of a prospective 2024 market rally.

On the date of publication, Dmytro Spilka did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Dmytro is a finance and investing writer based in London. He is also the founder of Solvid, Pridicto and Coinprompter. His work has been published in Nasdaq, Kiplinger, FXStreet, Entrepreneur, VentureBeat and InvestmentWeek.

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