This past week, I told subscribers about the number one meme stock to buy today for a big near-term breakout.
I said this stock could end up being the next GameStop… or the next AMC… or the next Clover… all of which managed to soar several hundred percent in a matter of weeks.
Since then, that tiny penny stock has already soared as much as 23%.
And I think this is rally is just beginning.
That’s why, today, I’m going to tell you all about this penny meme stock with huge breakout potential.
No. This is NOT a long-term investment opportunity. It’s a short-term trade. And therefore, it’s not for your lunch money – but if you’re looking to play the meme lotto machine, then what I’m about to say will be of interest to you…
First, though, let’s understand something very important: Meme mania is here to stay.
This is about more than GameStop stock, or AMC stock, or Clover stock, or even the entire WallStreetBets forum on Reddit.
This is about retail investors discovering the power of the internet to coordinate buying efforts and dramatically influence stock prices.
They used this power on GameStop in January. And again on AMC in May. And again on Clover in June. All three times, it worked better than anyone could’ve imagined.
They will use this power repeatedly, so long as it is effective.
Retail investors coordinating buying efforts through social media forums will increasingly become more and more normal, because they now see that – when done correctly – it can work.
Not just once. But many times over.
Not to mention, commission-free trading platforms with leverage capability are giving a new generation of “Robinhood” traders the tools they need to move stocks.
In other words, what happened to GameStop stock in January, AMC stock in May, and Clover stock in June, will happen again. Indeed, it will happen many, many more times.
Alas, the million-dollar-question is: Who is next?
I may have the answer.
Here’s the thing about meme stocks. They may appear random. But they are anything but random – because, after all, it takes a certain set of characteristics for the “let’s all band together and drive the stock price to the moon” strategy to work.
You need a low stock price, to enable retail investors to buy a lot of it.
You need a small float, so that a small group of investors can impact a big change.
You need a high short interest, so that buying pressure eventually leads to a short squeeze.
You need lots of momentum, to attract mainstream interest.
Given these characteristics, I think a tiny, $100 million company by the name of Vinco Ventures (BBIG) will be the next big meme stock.
Vinco Ventures is basically blank-check company that is looking to acquire digital media and content companies.
That’s not the important part. As stated previously, I’m highlighting Vinco Ventures stock today not because the long-term fundamental bull thesis is compelling – rather, because this stock has what is to takes to turn into the next big meme stock.
Low stock price? Check. As of this writing, Vinco Ventures trades around $5. Great price for a meme stock.
Small float? Only 19 million shares. That’s tiny. A small group of investors could really move the price very quickly.
High short interest? You bet. Twenty percent of that 19-million-share float is sold short. That sets up the stock for a huge short squeeze, especially since a lot of those shorts will be forced to cover if the stock breaks $5.
Tons of momentum? Yup. On both the social and stock price sides. Socially, Vinco Ventures is trending all over Twitter and Reddit, with volume of mentions swinging sharply higher over the past few days. On a technical basis, the stock has more than doubled over the past month and is breaking out of a multi-month downtrend in a powerful fashion.
This tiny, completely off-the-radar stock has what it takes to be the next big meme stock.
To be sure, the risks here are enormous. This is not a long-term investment opportunity. This is not for your lunch money.
Vinco Ventures is one of my top picks, and long-term, this stock will score investors big returns.
But it’s not the only high-growth, high-return stock on my radar today.
In fact, I have more than 40 hypergrowth stocks in my Innovation Investor newsletter service that could score investors Amazon-like returns over the next months and years.
These stocks include the world’s most exciting autonomous vehicle startup, a world-class “Digitainment” stock creating the building blocks of the metaverse, a company that we fully believe is a “Tesla-killer,” and many more.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It’s the theme of his premiere technology-focused service, Innovation Investor. To see Luke’s entire lineup of innovative cutting-edge stocks, become a subscriber of Innovation Investor today.