Is Rocket Companies (RKT) the Next Meme Stock?

Here we go again.

Just years ago, GameStop, AMC, and Bed Bath & Beyond exploded thanks to WallStreetBets on Reddit. Now, it’s happening again.

In fact, just yesterday, Kohl’s ran from a low of $10.52 to a high of $19.53 as it became the latest meme stock to explode higher.

Like other beaten-down stocks suddenly embraced by retail investors, Kohl’s benefited from the incredible buzz in communities like Wall Street Bets, which targets highly shorted, and oftentimes, hated stocks. Granted, KSS has been a delirious disaster for investors, but with about 33% of its float short (24.16 million shares), it was ripe for the picking for a potentially massive short squeeze, which we saw just yesterday.

Rocket Companies Could Be the Next Hot Meme Stock

Diversified financial services company, Rocket Companies (NYSE: RKT), could be the next to get the meme treatment.

While it hasn’t exploded just yet, it could be the next hot meme stock to go ballistic.

With a short interest of 60.75%, or 73.3 million shares short, shares of RKT currently lead the list of hot meme stocks on WallStreetBets on Reddit. Even more interesting, mentions of the RKT stock are up 2,412% according to the Reddit account.

GoPro More than Doubled this Morning

Other than RKT, shares of GoPro nearly doubled as it became the latest, heavily-shorted stock to pop on Wall Street Bets momentum.

According to StockTwits.com, “Retail sentiment around the stock hit a year-high, jumping into ‘extremely bullish’ territory from ‘bullish’ a day ago. Platform data shows that chatter around the stock surged by over 1,200% in the last 24 hours.”

We should also note that GPRO’s short interest is currently 9.51%, with 12.1 million shares short. 

Krispy Kreme Joined the Meme Party, Too 

With short interest of about 33%, or 24.16 million shares short, DNUT exploded out of the gate.

As noted by StockTwits.com, “Retail sentiment on Stocktwits flipped to ‘extremely bullish – also marking a year-high – from ‘bearish’ in the last day. Data from the platform showed retail chatter around the shares has jumped 7,100% over the past day.”

However, Be Cautious Trading Meme Stocks 

As exciting as meme stocks are, we strongly urge investors to be cautious.

It’s tough to ignore the dramatic impact of a Reddit account on stocks. But you need to know when to take your wins and walk away, too, or you risk holding the bag.

Just yesterday, for example, shares of Kohl’s ran from $10.52 to a high of $19.47. Today, though, it’s down about $2 a share on profit taking.

So, there’s a good deal of risk at play here.