Finance Monthly - November 2021 Edition

trading becoming one of the most popular applications for Covid’s incentive cheques in the US. Yet, the retail investment boom is not unique to the US. Almost all major stock markets have seen similar trends, with local trading applications becoming more widespread. What does the future hold for meme stocks? Will the movement last? The future of the “meme stocks” movement will depend on the fundamental reasons for its emergence in the first place, including liquidity levels in the markets, interest rates, and monetary policy. Without these components, the rise of “meme stocks” might have never happened in the first place. As such, while it is likely that this theme will continue to exist, it will not move at such an incredible scale as in January with Gamestop and AMC stocks. What are the top five “meme stocks” to watch out for in 2021? While it is clear that investors should avoid impulse buys, with the right level of research and precaution “meme stocks” can result in profits for more experienced buyers. So, what are the top “meme stocks” that investors should watch in 2021? 1. Alibaba Group Holding Limited (BABA) Through its subsidiaries, Alibaba Group Holding Limited (BABA) provides technology infrastructure and marketing opportunities for merchants, brands, retailers, and other businesses to engage with users and customers. It operates in four segments: Core Commerce, Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives. It is sitting at about 72% upside to the average target price of $246. 2. ContextLogic Inc. (WISH) ContextLogic Inc. (WISH) operates as a mobile e-commerce company in Europe, North America, South America, and other areas across the globe. The company operates Wish, a platform that connects users with merchants. It also provides marketplace and logistics services to sellers. The company was incorporated in 2010, at about 92% upside to its average target price of $9.2. 3. Palantir (PLTR) Palantir (PLTR) is a software developer that specialises in big-data analytics. The company recently announced that the US Army’s Intelligence Systems and Analytics Program Manager has selected PLTR to provide the data framework and analytical foundation for the Capability Drop 2 (CD-2) program. As a result, the software firm has been selected to advance the next phase of the Army’s $823 million indefinite-delivery contract, with an approximate 23% upside to the maximum target price of $31. 4. PubMatic (PUBM) PubMatic (PUBM) provides a cloud infrastructure platform for digital advertising that enables real-time advertising transactions. The company was founded in 2006 and today operates 14 offices and eight data centres around the world, at about 97% upside to its average target price of $46. 5. NIO Inc. (NIO) NIO Inc. (NIO) designs, develops, manufactures and sells intelligent electric vehicles in China. The company offers five, six, and seven- seat electric SUVs, as well as smart electric sedans. It also provides energy carriers and service packages to its users; marketing, design and technology development activities; production of electronic powertrains, batteries and components; and sales management and after-sales service activities, at about 88% upside to the average target price of $63.8. “The future of the “meme stocks” movement will depend on the fundamental reasons for its emergence in the first place, including liquidity levels in the markets, interest rates, and monetary policy.” Finance Monthly. Inve s tmen t 59