CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Meme stocks to watch: top trending shares on Reddit in August 2022

We take a look at the top trending meme stocks, namely Tesla, GameStop and Snap.

What is a meme stock?

A meme stock is an equity that experienced a sudden surge in popularity after retail interest in it burgeoned overnight, owing to related memes that went viral on social media and discussion platforms such as Reddit and Twitter.

Meme stocks became a phenomenon in early 2021, after US brick and mortar video game seller GameStop’s share price skyrocketed on the back of a short squeeze orchestrated by users of the Reddit sub-forum, r/wallstreetbets.

Benefits and risks of trading meme stocks

  • Due to the general lack of fundamentals involved, meme stocks tend to be extremely volatile and speculative
  • However, this also presents huge trading opportunities for retail investors

Best meme stocks: top trending shares on Reddit

Stock Ticker Mentions* Share price change*
Tesla Inc TSLA 5,383 +31%
GameStop Corp GME 3,668 +21.1%
Snap Inc SNAP 1,379 -31.2%

*Data from Quiver (30 day period prior to 2 August 2022)

1. Tesla (NASDAQ: TSLA)

The electric vehicle maker’s stock is enjoying a resurgence, with share price currently trading at a three-month high of US$926. Shares are up by over 16% in the last one week alone, as of 2 August 2022.

This latest rally came ahead of the company’s annual general meeting (AGM) on 4 August 2022, when investors will vote on a proposed three-for-one stock-split plan. If approved, the stocks-split will be TSLA’s second in less than two years.

Retail investors’ recent bullishness on the stock also coincided with two other factors: the company’s better-than-expected second quarter (Q2) 2022 financial results, and a recovering US stock market.

Tesla saw Q2 revenue surpass Wall Street estimates by US$400 million, while the S&P 500 Index jumped up over 9% in July 2022, its best month in nearly two years.

Looking ahead, here are two things to take note of in the next few weeks: short interest (people betting against TSLA) volume, which surged during the previous stock-split, and any other major announcements from the AGM.

2. GameStop (NYSE: GME)

At first glance, the original (OG) meme stock appears to be having an impressive 2022, with share price up by 45% in the last six months.

But there’s more to the story.

A four-for-one stock-split conducted on Friday (22 July 2022) has not been going as well as hoped. Despite trading at a new lower share price of around US$35 (compared to over US$120 previously), GME proceeded to lose over 15% of its market capitalisation over the next three sessions.

It is still trying to recoup those losses as of the time of writing, with the stock having clawed back around 12% of its value.

Furthermore, its ‘OG meme stock’ status is not sparing it from the effects of an economic downturn, as more and more retail investors choose to focus on fundamentals like a company’s performance, than on how viral a stock is on discussion forums.

Still, GME is consistently one of the most talked-about meme stocks, an important ingredient for meme stock hunters hoping for the ‘mother of all short squeezes’.

3. Snap (NYSE: SNAP)

The social media platform’s stock price crashed nearly 40% two weeks ago, after its Q2 results fell below industry expectations and its own guidance. One analyst even called the price snap a ‘near-death experience’.

Snap said the underperformance ‘do not reflect the scale of our ambition’, adding that it is ‘not satisfied with the results we are delivering, regardless of the current headwinds’.

The short-form video messaging app also chose not to release any guidance on subsequent quarters due to ‘uncertainties related to the operating environment’.

But there were a couple of bright spots in the results. The number of daily active users rose 18% year-on-year to 347 million during the period. It also surpassed analysts’ expectations of 343 million daily active users.

Nevertheless, a dozen of investment banks went ahead to slash their ratings on SNAP following the latest earnings.

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  1. Create an IG account or log in to your existing account
  2. Search for the stock you want to take a position on
  3. Choose your position size and place your trade

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