Beyond Meat (BYND)
Following its recent earnings report, Beyond Meat (NASDAQ:BYND) has received increased attention as an overlooked meme stock. BYND’s share price has seen an impressive rally despite reporting a drop in earnings. This was likely due to the announcement of a turnaround strategy pointing to significant cost reductions, soothing investor confidence.
While the company remains with no profits, resulting in a negative price-to-earnings (P/E) ratio, growing online discussion around its growth potential could further bolster its meme status in the short term. However, increasing losses over the past four years could be a cause for concern in the long term, as the company does not even offer a dividend. So, although an overlooked meme stock name, its status may be shortlived – as it should, being a meme stock.
Bumble (BMBL)
The dating app company Bumble (NASDAQ:BMBL) announced its quarterly earnings on Tuesday, alongside plans to restructure parts of its operations. Initially, investors appeared unimpressed by the announcement, but the overlooked meme stock quickly rebounded. With online discussion around the ticker symbol BMBL surging in the days following the earnings call, retail investors see the overlooked meme stocks with a different eye.
While Bumble grew its revenues, earnings fell short of expectations. Most of the media coverage focused on comments from the CEO. He outlined necessary upgrades to the app experience and a reduction of approximately 350 roles. However, with analysts now broadly optimistic, forecasting an average target price of $16.04 per share, professionals’ views are beginning to align with retail sentiment around this overlooked meme stock. €‹
Carvana (CVNA)
The online car retailer Carvana (NYSE:CVNA) has seen its share price surge over 55% in the past month. Previously considered a ‘meme stock’ in 2022, when its price rocketed by an astonishing 1,100%, Carvana presents an interesting case of a potentially overlooked meme stock.
The company seems primed for another ‘short squeeze’ event, with short interest reported at 34.74% of its available stock. This follows Kerrisdale Capital‘s announcement of a short position in Carvana. The notable rise in price after disappointing results is thought to stem from short covering, as the current valuation exceeds average expectations. €‹
On the date of publication, Stavros Tousios did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Stavros Tousios, MBA, is the founder and chief analyst at Markets Untold. With expertise in FX, macros, equity analysis, and investment advisory, Stavros delivers investors strategic guidance and valuable insights.