Top 2 Potential Meme Stocks

Vishesh Raisinghani
·3 min read
sad concerned deep in thought

Retail investors have seized control of the stock market in recent years. Millions of average traders and enthusiasts collaborating through social media to target specific stocks has been the defining feature of this bull market. So-called “meme stocks” are still flying high.

If you’re a trader or speculative investor looking to bet on exaggerated volatility, here are the top stocks most likely to be caught up in the retail trading wave.

Meme stock 1

Score Media and Gaming (TSX:SCR)(NASDAQ:SCR) is a pure-play sports betting that has recently listed on the NASDAQ. The stock has more than doubled in value since the start of the year, even though it’s significantly lower than its all-time high of $56.

Score’s media and online betting platform has already emerged as the third most visited sports website in North America. Meanwhile, there’s significant overlap between those who bet on sports and those who bet on stocks. Retail investors on Reddit and Twitter have been focused on the legalization of sports betting in America.

As the legalization wave continues and live sports make a comeback in 2021, stocks like Score Media could see a fresh wave of retail investment.

In the 12 months ended November 30, 2020, the company had accumulated $16 million in revenues. In the first quarter, Score’s media application had four million active users who opened the betting app 116 times per month on average.

Robust revenue growth is more than expected given the huge traffic into the flagship app. The company has also launched the Score betting app in Colorado and Indiana with plans to launch in other states.

Besides, e-sports is an emerging segment expected to be a key driver of revenue growth for the company. Currently, the eSports app has more than 350 million video views. As esports become more mainstream, viewership could accelerate and the company could further monetize this content.

Score Media and Gaming growth prospects are looking good, with revenue expected to increase by between 71.7% and 79.1% in 2021 and 2022, respectively. Profits are also expected to increase by between 15.5% and 46.2% in 2021 and 2022, respectively.

The company also has more than $200 million in cash that it could use for mergers and acquisitions.

Meme stock 2

Blackberry (TSX:BB)(NYSE:BB) was a meme stock for much of 2020. In early January, 2021, the stock reached a nine-year high. Since then, it has cratered down to just $11.9. However, my Fool colleague Chris MacDonald believes it could go parabolic again.

Blackberry’s Intelligent Vehicle Data (IVD) platform puts it at the centre of the ongoing disruption in the automotive industry. An undervalued stock coupled with bleeding-edge technology could regain the media’s attention and retail investment dollars. Keep this on your radar if you’re looking for an underrated medium-term bet.

Even if the Reddit crowd doesn’t rediscover this stock, it offers plenty of intrinsic value to justify your attention. After all, Canada’s most famous investor, Prem Watsa, has remained committed to this position for years!

The post Top 2 Potential Meme Stocks appeared first on The Motley Fool Canada.

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Fool contributor Vishesh Raisinghani has no position in any of the stocks mentioned. The Motley Fool recommends BlackBerry and BlackBerry.

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