Meme Market Madness: 3 Stocks & Coins to Ride the Hype Train
There are three meme stocks and cryptos for investors to consider in April this year. I think that these companies could rally significantly moving forward.
The major stock market indices like the S&P 500 and Nasdaq Composite have had a strong start to 2024, with substantial gains. This impressive run-up has led to concerns about valuations getting stretched and the potential for a short-term correction. Many market analysts are predicting a pullback in the coming weeks. This is happening as investors take some profits, but remain bullish on the long-term outlook.
I believe that pullback could be on cards. However, after such a correction occurs, it could lead the valuations of these meme stocks and cryptos to shoot off the new heights. Renewed interest by bulls has been the catalyst.
This year could be volatile thanks to the Bitcoin (BTC-USD) halving event due in a few days and the continued surge in tech and other disruptive sectors leading the charge. Meme stocks and cryptos could be a speculative option for taking advantage of these trends.
BlackBerry (BB)
Once known for its smartphonesBlackBerry (NYSE:BB) became a meme stock due to interest from retail investors on platforms like Reddit (NYSE:RDDT).
For 2024, BB is implementing significant strategic changes. This includes restructuring into standalone divisions for IoT and cybersecurity, which are expected to drive the company towards profitability. The firm has taken substantial steps towards this goal. This includes reducing its annual cost run rate by approximately $50 million through headcount reductions and other cost-saving measures.
Looking further ahead, BB’s management has reiterated their focus on achieving profitability for each division. They plan to maintain a positive net cash position throughout the fiscal year. This is happening despite the initial financial outlay required for restructuring.
With the stock falling around 37% over the past year, I believe that BB could be in the prime position to shooting higher once it falls into more undervalued territory. This makes it one of those meme stocks that investors should pay attention to.
Dogecoin (DOGE-USD)
Originally started as a joke, Dogecoin (DOGE-USD) quickly became a symbol of meme cryptocurrency. It continues to be one of the most iconic meme cryptos in the market today. Some analysts predict that it could rally after Bitcoin’s halving event.
Some are optimistic, with predictions of moderate growth, expecting DOGE to reach up to $0.3392 by the end of the year. Others offer a more cautious forecast, suggesting a price around $0.20. The potential for reaching or even exceeding $1 by 2025 is noted by some analysts.
DOGE was sold off amid a possible interest rate reduction freeze and the continued instability in the Middle East, falling around 4% over the last five days. However, it should be noted that Bitcoin was trading at overvalued levels in the events prior, which means that a pullback could be seen as healthy for the market.
With DOGE closely correlated with BTC, I expect that DOGE will rally strongly in the days ahead once bulls regain their appetite for risk amid the halving event.
Nokia (NOK)
Nokia (NYSE:NOK) gained meme status during the retail trading frenzy, and remains as one of those meme stocks to watch for the rest of the year.
For 2024, Nokia is forecasting growth despite the hurdles faced in 2023. The company anticipates improvements in its network businesses, supported by positive order trends, particularly in network infrastructure.
Looking further ahead, by 2026, Nokia aims to achieve an operating margin of at least 13%. This adjustment is a slight decrease from the previously targeted 14% margin. It plans this through pursuing growth in various technology segments including 5G, cloud, and network services. NOK is primed for a strong rally this year. Analysts predict EPS will rise by 192.15%. This forecast also comes with a predicted upside of around 30% for its stock price and top-line expansion.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
