Evercore says economy and profits can build confidence
Julian Emanuel of Evercore ISI believes that falling meme stocks could recover if robust economic and earnings growth assists to restore investor confidence.
Empire Financial warns against betting on beaten stocks
A robust business and economic environment, according to the strategist, is likely to help resuscitate such stocks this year if cooler heads prevail in the coming weeks, easing the negative market sentiment.
“We are banking on the stock market’s stabilization. “We expect that these declining meme stocks, which are currently heavily sold and swearing all over the place and peaked in 2021, might recover,” Emanuel said.
Emanuel has put together a list of “180 Memes” stocks to watch. Telados Health Inc., Peloton Interactive Inc., Plug Power Inc., and Novavax Inc. are among the companies on this list.
“The meme frenzy was fueled by the same forces that pushed up the price of tulips in the 1640s, South Sea equities in the 1700s, stock prices in the 1920s, and dot-coms – fear of missing out.” When it comes to manias, we constantly hope things will be different this time,” noted Empire Economic Research’s Herb Greenberg.