Swaggy's Top Stonks - Meme stocks and Robinhood Markets (HOOD)
Swaggy's Top Stonks - Meme stocks and Robinhood Markets (HOOD)
Swaggy’s Top Stonks. We compile and analyze data from multiple sources bringing you the top trending tickers from around the internet. If you haven’t subscribed already, please do so below.
Swaggy's Top Stonks
August 5, 2021
Welcome newcomers to Swaggy's Top Stonks and thank you for subscribing. This edition will be short and sweet as I'll go through what's going on in the markets this week.
Before we begin, here's an article on the psychedelics industry from one of our sponsors
https://investingtrends.com/wp-content/uploads/2021/05/ground-floor.jpg
Facebook Billionaire Investing in a Shocking New Industry
Peter Thiel, the billionaire investor behind Facebook, PayPal, and eBay, has a new darling industry in his sights. And he's betting a massive $210 million on its success. That's not pocket change.
And today, you could get in on the ground floor of this industry right along with him.
https://investingtrends.com/CLABF/ride-shotgun-with-peter-thiel-as-he-unleashes-his-disruptive-powers-on-a-prime-target-big-pharma/?utm_campaign=CLABF_SPG&utm_source=27002&utm_medium=nlspon&utm_content=facebook
*This is an ad
Earnings SZN (season)
Uber (UBER) beat on revenues with $3.93 billion versus $3.72 billion estimate, but posted a huge loss on EBITDA as well as a miss on forecasts and poor guidance. Uber was trading down 2.29% for the day and traded down 5% in after-hours action.
Roku (ROKU) beat on revenues and eps with a mixed bag of results as active customer accounts and streaming hours missed expectations. This signifies a potential slowdown in viewing hours and the stock is sinking 9% after-hours.
Etsy Inc (ETSY) beat on eps and missed on revenues. Similar to PINS last week ETSY slid -14% in after-hours trading yesterday.
Fastly (FSLY), a popular stock among retail traders and especially on Twitter. Mixed results for FSLY, but nothing spectacular. Management gave less-than-desired guidance for the rest of FY 2021 and the stock was down 18% in after-hours.
We see some covid growth names missing their shots this week, but futures shrugged it off and pushed higher last night.
Sentiment Report
If you've paid attention to the SwaggyStocks site, or the markets in general, you noticed Robinhood Markets (HOOD) has been trending everywhere. When did the madness actually begin though? The day of and the day after the IPO SwaggyStocks captured a small amount of mentions for the ticker, but nothing to write home about.
Since Monday it's been a different story. Yesterday's price action (+25%) had HOOD being the talk of the town on many social platforms. On WallStreetBets it was the most talked about ticker, had over 2,000 mentions, and was roughly 25% of all ticker mentions. Monday's numbers were trumped not even one day later with over 2,700 mentions and almost 45% of all ticker mentions by the end of the day on Wednesday.
Can anyone have predicted this? My opinion on this is going to be "no". The stock has almost doubled in two days, and we might even see the "WallStreetBets" effect take place. The effect is when a ticker gets hyped too much too fast and ends up tanking several days later. This is not financial advice, and is only my opinion. Here's the sentiment chart to go with it.
Moderna (MRNA)
A ticker that has made it's way back to meme status is MRNA. This name hasn't seen too much hype even though the stock price has gone up almost 800% in the last year. In fact, this is one of the rare times when WSB actually thinks a stock will go down after going up too much (SNAP also has similar sentiment).
Advanced Micro Devices (AMD)
I brought up AMD over the weekend due to it's out-performance and it seems this stock has continued it's STRONG momentum over the last two trading days. AMD is always one of WSB's favorite tickers, we can see comment volume is consistently between the 2-8% range of total ticker mentions.
SoFi (SOFI)
This financial services platform is starting to get noticed more and more by retail traders. What was result of the IPOE SPAC merger has ended with SOFI. Sentiment and popularity have picked up as the stock traded lower.
Other "Meme" Stock Ideas
So you're probably asking "Swaggy, all these stocks went up 5-10% today, is it too late to get in?". This is for you decide, but how I usually play it is by looking at both the sentiment chart and the stock price and using sentiment as a guide (something like technical analysis). For me, the first 3 charts above are in the "no fly zone", meaning I won't touch them.
If you all remember from several weeks ago I called out AMD at $80 and rode it out until $95 in a span of 2-3 weeks -I was satisfied with that play. Looking at the charts I mentioned above, many of the names are over-extended in the short-term and have already returned so much to shareholders. Personally, if I enter now I am chasing with the rest of the FOMO group which could be very crowded at this point. Please keep in mind this is entirely dependent on whether I am looking for a swing trade (1 week to several months), or if it's a stock I am looking to add to my long-term portfolio where I look at what the macro trends are two years out and throw a dart at something I like.
On the different side of things, looking at the SOFI chart we can see hype is actually increasing while the stock price is going down. These are the kinds of plays I would rather enter, and although SOFI was up 9% today, it's still very much down from only two months ago where it was in the $20+ range. This leads me to think it has quite a bit more room to run, instead of squeezing out another 5-10% on some of the strong uptrends like AMD or MRNA, but this is all just my best guess.
Similar to SOFI, here are a few other tickers that have the potential to regain their meme status, but have been either stagnant or beaten up.
Palantir (PLTR)
Palantir was consistently a top 5 mentioned stock on WSB since November of last year up until the last month or two. The stock price has had it's moments of massive FOMO and even reached an intraday price of over $45 back in February. Currently at $22, the stock is battered and beaten, but the potential of going back to glory days of hype and momentum might not be far off.
Clean Energy Fuels (CLNE)
This ticker started getting recognition in January after Biden took office and it was assumed the "clean energy" infrastructure plans were going to greatly help this stock. Down, but not out, CLNE seen a significant decline in the stock price.
Rocket Companies (RKT)
It was this time last year when RKT first started to trend on WSB. I remember like it was yesterday, RKT's stock price shot up from $20 to $33 in just a few days and everyone was talking about how it was going to $50. This name has seen the occasional squeeze and even hit over $40 for a short-time back in February, but for the other 99% of the time it has remained in the $18-20 range.
Closing Thoughts
There's no secret method to finding meme stocks and making 100% returns on these plays. The best we can do is find quality names that have had some of this hype in the past, then make our best guess on when or if it's even possible it will happen again. The key to this is patience and making sure you are comfortable holding a stock that not only goes up 100%, but might also go down 50%. A lot of these names are unpredictable.
If I had to describe the meme-trade, it's almost like playing roulette on a table where the ball frequently lands on a set of favorable numbers. We know which numbers have a good probability to hit the jackpot, we just can't predict the timing (or stay solvent if you play options).
That's all for today's edition. I hope you all enjoyed the content as I will be trying to include more sentiment and hype stuff more often moving forward.
If you enjoyed this read, why not share it?
Disclaimer: All material presented in this newsletter is not to be regarded as investment advice, but for general informational purposes only. You are solely responsible for making your own investment decisions. Owners of this newsletter, its representatives, its principals, its moderators, and its members, are NOT registered as securities broker-dealers or investment advisors either with the U.S. Securities and Exchange Commission or with any securities regulatory authority. We recommend consulting with a registered investment advisor, broker-dealer, and/or financial advisor. If you choose to invest with or without seeking advice from such an advisor or entity, then any consequences resulting from your investments are your sole responsibility. Reading and using this newsletter or using our content on the web/server, you are indicating your consent and agreement to our disclaimer.