Whatever happened to meme stocks?
These were the hottest stocks on the planet back in 2020–2021.
GameStop (GME) surged nearly 18,700% in just 10 months. AMC Entertainment Holdings (AMC)—another popular meme stock at the time—soared 3,700% in five months.
Many other meme stocks soared thousands of percent in a matter of months.
After that, you’d hear about some hot meme stock here and there. But not lately.
Today, you barely ever hear about meme stocks. It seems like everyone has moved onto meme coins like Dogecoin (DOGE) and Bonk (BONK).
But meme stocks haven’t disappeared entirely. They’ve just evolved.
These days, “story stocks” are the new meme stocks.
These are smaller stocks riding red-hot narratives. Think the space economy, nuclear energy 2.0, quantum computing, robotics, and autonomy.
Now, you might be saying, “Justin, those aren’t memes. Those are megatrends.”
And I’ll give you that. But you gotta understand something. Most companies in these bleeding-edge trends aren’t “real” yet.
Few make any money. Many haven’t made their first sale yet. They’re pre-revenue.
But that hasn’t kept investors from piling into them.
Oklo (OKLO)—a “modular” nuclear reactor stock backed by Sam Altman—has more than quadrupled since early September. The company has $0 in sales.
Quantum Computing (QUBT)—yes, that’s the actual company’s name—has surged 740% since July. This company has done less than $1 million in sales over the past year. But quantum computing is “the next big thing.”
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I could go on and on. But you get the picture.
Countless story stocks have delivered monster gains despite lacking fundamentals.
They’re the new meme stocks… only much better.
Quantum computing, robotics, and autonomy are CLEARLY going to revolutionize the world. Only a pessimist would disagree.
It’s much easier for everyday investors to buy into these megatrends than thinking that a garbage company like GameStop is going to rise from the ashes.
Unfortunately, most traders have zero clue how to trade these names.
But my RiskHedge Live members and I have been all over story stocks lately. And here’s how we’re stacking the odds in our favor...
Size accordingly: Remember, most of these story stocks aren’t real companies. Don’t be reckless and bet your life savings on them. Often, all you need is a small bet to see outsized returns.
Follow the leaders: Story stocks are no different than any other group of stocks. They have leaders and they have laggards. Just like any other group, you want to own the very best story stocks.
For space stocks, the leader is Rocket Labs (RKLB). In quantum computing, the clear leader is IonQ (IONQ), while NuScale Power Corp. (SMR) is the top dog in the nuclear reactor space.
As I said, we’re taking full advantage of the story stock boom in my private RiskHedge Live trading room, where I share my up-to-the-minute analysis and guidance with members.
If you’d like to join us, membership is open. We’re having a blast, and no trading experience is required. Go here to see if it’s right for you.
Justin Spittler
Chief Trader, RiskHedge
