STAYING AFLOAT MEME FULL

On the date of publication, Thomas Niel did not have (either directly or indirectly) any positions in the securities mentioned in this article. Now, in a new report, he’s naming 17 of his favorite Reddit penny stocks. He recommended Dogecoin before it skyrocketed over 8,000%, Ripple before it flew up more than 480% and Cardano before it soared 460%. Thomas Yeung is an expert when it comes to finding fast-paced growth opportunities on Reddit. Unless you’re banking on it becoming the next Reddit favorite, it’s best to wait for a more reasonable valuation before buying OTLY stock.įREE REPORT: 17 Reddit Penny Stocks to Buy Now As I said before, buying this today is basically a bet that Oatly becomes the next Beyond Meat. If shorting OTLY stock is not worth the risk, does that make it a buy? It depends.

Outside of Meme Stock Potential, Wait for Lower Prices But it may signal that you don’t want to bet against it, despite the hype and its possibly unsustainable valuation. That’s not to say this stock is bulletproof. Or short-sellers, fearful of getting squeezed, could stay away altogether. Meme stock traders could bid it up after the so-called “smart money” shorts it in response to weakening fundamentals. As a result, those shorting BYND stock were squeezed twice so far this year.Ī similar situation could play out with OTLY stock. Yet traders, such as those on Reddit’s r/WallStreetBets forum, are willing to go long with little concern for fundamentals or valuation. As a result, short-sellers circled the waters. But Beyond Meat has also benefited from the short-squeeze trend.īeyond Meat’s growth has been underwhelming in recent quarters. I’m talking about the continuation of meme stock insanity.ĪMC Entertainment (NYSE: AMC) and GameStop (NYSE: GME) may be dominating the headlines when it comes to this phenomenon. And, no, I’m not talking about the “new normal” and “old normal” dynamics of the Covid-19 pandemic.

STAYING AFLOAT MEME FULL

Built around a fad and priced for perpetually high growth, investors would bet against Oatly near its highs and cover their positions after the stock experiences a correction.īut as you know full well, we are not yet back to “normal times” on Wall Street.

In normal times, OTLY stock would be a prime target for the short-selling community. If “meme stock madness” latches onto this name, Oatly could turn into the next Beyond Meat in terms of price movement. As long as the company meets expectations for growth, it’ll be tough to bet against this “story stock.”Įven if growth starts to fall short of predictions, OTLY stock may not see a big sell-off as a result. With off-the-charts levels of growth, it’s no wonder investors are willing to pay up for OTLY stock. 2022 sales are projected to see a 43.4% increase to $904.4 million. Analyst estimates call for $630.5 million in sales this year, a nearly 50% increase from 2020. Its revenue growth will slow in 2021, but is still likely to be an impressive increase. In terms of sales growth, the company is “crushing it.” Between 20, sales zoomed from $204 million to $421.4 million. That’s clear from Oatly’s past results and projections between now and 2022. But no matter what the truth is, the pivot to non-dairy milk isn’t slowing down. You can debate whether plant-based milk is good for you (or the planet) until the cows come home. Why Investors are Excited About OTLY Stock But since buying now is a bet that Oatly becomes a plant-based meme stock, wait for lower prices before entering a position. So what’s the best way to play this recent IPO? Given current investment trends, it may not be worth it to short OTLY stock.

Staying afloat meme