A logo of a Virgin Galactic is seen outside the building on the company’s first day of trading on the New York Stock Exchange (NYSE) on October 28, 2019 in New York City.
JOHANNES EISELE | AFP | Getty Images
Meme stocks are in the spotlight again, and Bank of America has said it needs to watch out for a handful of new names seeing a pickup in the gossip.
So-called Reddit actions have come back from the dead with double-digit rallies this week as investors retreat to speculative names with the stock market near record highs. GameStop shares climbed nearly 16% on Wednesday, pushing its earnings this week to 37%. Another Reddit target, AMC Entertainment, rallied over 19%, taking its weekly lead to over 60%. The two were back in the green on Thursday.
Bank of America identifies potential future WallStreetBets targets by analyzing for customers how many mentions each stock gets on Reddit, among other things like short interest.
“We believe that some of the new retail activity could be here to stay with zero commissions, more time at home and high savings rates – but we expect moderation this year against a backdrop. of peak stimulus, reopening and any potential regulatory action “. Bank of America equity and quantitative strategist Jill Carey Hall told clients in a note.
Bank of America has given clients a list of top small to mid-cap stocks to watch out for as the meme stock craze returns. The names listed have the most mentions on Reddit and an above-average short interest of 5% for the S&P 500.
Take a look at the list here.