This 1,529% gain over two weeks was attributed to traders in Reddit’s r/wallstreetbets subreddit pumping up the stock to create a short squeeze. This was repeated for a few more stocks before things quieted down for a little while. But meme stocks have recently made a comeback, with shares of companies like Blackberry (TSX:BB) AMC Entertainment Holdings (NYSE:AMC) soaring. These stocks are not rising due to company performance; instead their gains result from social media attention, hence the name meme.
Even though major companies like Apple (NASDAQ:AAPL) had stellar earnings results, their price performance is being dwarfed by these speculative stocks. So, are these companies even worth investing in? I’d like to answer that question by highlighting two stocks that have recently generated strong returns due to mentions in Reddit: Wendy’s Company (WEN) and Palantir Technologies (PLTR).