Jim Cramer Recommends Tracking Expired Meme Stocks

Jim Cramer's Insight on Meme Stocks

In a recent discussion, financial expert Jim Cramer raised important points regarding the need for a "gone meme list". This list would help traders keep track of companies that have experienced a peak in speculative trading, signifying that the initial buzz has settled.

Understanding the 'Gone Meme' List Concept

Cramer is observing the shifts in the market, particularly with stocks like Opendoor Technologies Inc. (NASDAQ: OPEN), whose recent surge can be attributed to its growing presence on social media platforms. In contrast, he notes that the excitement surrounding IonQ Inc. (NYSE: IONQ) appears to have subsided.

Opendoor: A New Player Among Meme Stocks?

The current enthusiasm regarding OPEN's stock has captured the attention of many investors, showing a remarkable increase of over 135% within a month. This uptick stems from robust commentary and trading activity from retail investors eager to capitalize on the latest trends.

While some supporters argue that Opendoor's success is built on solid fundamentals, skeptics like Martin Shkreli and Andrew Left have taken a more critical stance, eying potential shorting opportunities. These differing opinions reflect the divisive nature of the conversation around whether OPEN can indeed be categorized as a meme stock.

Comparative Analysis: Learning from the Past

The rise of Opendoor has drawn parallels to the volatile journeys of previously popular meme stocks, such as GameStop Corp. (NYSE: GME) and AMC Entertainment Holdings Inc. (NYSE: AMC). Just as these companies gained attention for their unconventional trading patterns, the hype around OPEN continues to stir up debate amongst investors.

In light of these evolving market dynamics, Cramer's initiative to propose a gone meme list serves as a tool for traders to recognize stocks that might be entering a quieter phase, reverting to trading patterns more aligned with underlying business fundamentals.

Cramer's Skepticism Towards Speculative Trading

Jim Cramer urges caution regarding the valuation of stocks driven predominantly by online trends. He emphasizes that although some stocks, like IonQ, have enjoyed periods of visibility, their valuations need to return to reflecting genuine business performance rather than fleeting social media hype.

Current Price Movements and Market Trends

At present, OPEN faces some fluctuations, having decreased by 3.36% in premarket trading after a recent 6.06% drop, leading to a current share price of $8.92. Despite these changes, it has notably increased by 461.01% year-to-date.

Comparatively, both the SPDR S&P 500 ETF Trust (NYSE: SPY) and Invesco QQQ Trust ETF (NASDAQ: QQQ) are experiencing declines in premarket, with SPY showing a slight decrease of 0.062%, while QQQ has also fallen by 0.066%.

Frequently Asked Questions

What is a 'gone meme list'?

A 'gone meme list' is proposed by Jim Cramer to track stocks that have peaked in speculative trading and have since declined in interest.

Why is Opendoor's stock gaining attention?

Opendoor Technologies Inc. (NASDAQ: OPEN) has seen a significant rise in its stock price due to increased social media buzz and heavy retail trading.

What are some historical examples of meme stocks?

Previous meme stocks include GameStop Corp. (NYSE: GME) and AMC Entertainment Holdings Inc. (NYSE: AMC), which experienced extreme volatility driven by retail investors.

How does Jim Cramer view IonQ's market position?

Cramer suggests that IonQ Inc. (NYSE: IONQ) is transitioning out of its speculative phase and returning to trading patterns more focused on its business fundamentals.

What is the current performance of OPEN stock?

As of recent trading, Opendoor's stock has seen fluctuations, currently priced at $8.92, representing a 461.01% increase year-to-date.

About The Author

Greetings, I'm 32-year-old author and financial specialist Evelyn Baker. My introduction into the financial industry started with an economics degree and continued with a wealth of experience in wealth management and financial consulting. My great passion over the years has been assisting people and companies in making wise, well-informed decisions to reach their financial objectives.

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