Meme Stocks Surge as Trump Jr. Calls for Memes to Celebrate His Father's Reelection

After it was fairly certain former President Trump secured his 2nd term, his son Donald Trump Jr. called for his 12.8 million followers to “Show me the memes!!!”.

After former President Trump secured his 2nd term in the 2024 US presidential elections, his son Donald Trump Jr. called on his 12.8 million followers to share memes about the victory.

Meanwhile, the S&P 500 (SPX) index reached a new all-time-high on Monday, largely driven by Trump’s win and geopolitical factors. This enthusiasm also spilled over into several meme stocks, leading to their surge.

Here’s a quick snapshot of how some meme stocks performed last week:

BlackBerry (NYSE: BB) stock unexpectedly surged by 7% over the last week but returned flatlined performance over a 30-day period. Currently trading at $2.42, BB stock still averages out lower than its 52-week high at $4.44. However, it is trading above its 52-week average of $2.81 per share, presenting a moderate-risk, high-reward opportunity.

BlackBerry transitioned from a smartphone manufacturer to a software B2B model. The Canadian company now focuses on secure comms for (IoT) devices. Last week, we covered how Hyundai picked BlackBerry’s QNX platform as the real-time operating system (RTOS) to handle digital cockpits for Hyundai Mobis.

It is estimated that QNX is now present in 255 million vehicles, which BlackBerry acquired in April 2010 for $200 million. To date, BlackBerry’s largest acquisition was the cybersecurity firm Cylance in 2018 for $1.4 billion.

Back in mid-October, the company outlined its future revenue growth expectations at its Investor Day. BlackBerry counts on more security contracts with governments for its AtHoc, UEM, and secusmart solutions, while Cylance offers endpoint security solutions for AI/ML.

From Q3 FY24 to Q2 FY25, the company plans to cut costs from $50 million to $10 million, saving up about $135 in consolidation and streamlining efforts.

From Q4 FY22 to Q4 FY24, BlackBerry’s royalty backlog nearly doubled, from $460 million to $815 million. By 2033, the company expects to see even greater growth on account of the growing software-defined vehicle (SDV) market.

Twelve months ahead, seven analysts formed a $2.89 average price target for BB stock, with even the bottom outlook of $2.75 being higher than the present price. The ceiling estimate of $3 per BB share is still a significant profit potential for this penny stock.

Coinbase (NASDAQ: COIN) stock also benefited greatly from Trump’s victory, having gone up nearly 70% over the last week. The company started the year strong as the primary custodian for Bitcoin ETFs. With the expected removal of Gary Gensler as SEC Chair and the end of Operation Choke Point 2.0, the next four years should see renewed capital inflows into the blockchain space.

Today’s new all-time-high Bitcoin price of $84.3k is a testament to this expectation. At the present price of $317 per share, COIN stock is steadily approaching its own all-time high of $357 in November 2021. However, we are likely to see a price correction after the sell the news effect wanes.

In Q3’s shareholder letter, Coinbase delivered $572.5 million in transaction revenue. While lower than during the strong Q1 at $1 billion, it nearly doubled from the year-ago quarter. Compared to $94.9 million net income in Q3 ’23, the company generated $75 million, although pre-tax losses are obviously unrealized at the time of the filing.

Notably, Coinbase’s Base, an L2 scaling solution, also received a 55% quarterly transaction boost, now ranking first by total value locked (TVL). Compared to the closest second L2, Arbitrum One, Base holds $3 billion TVL vs $2.86 billion, respectively.

According to 23 analysts, the average COIN price target is set for $243.47, while the high estimate could top the previous all-time high at $380 per share.

GameStop (NASDAQ: GME) stock should be viewed as the primary magnet that draws investor intention by notoriety alone. GME stock went up nearly 18% over the last week, delivering YTD returns of 57%.

Currently priced at $26.25 per share, GME stock is still above its 52-week average of $18.92 but farther from its high point of $64.83 for the same period. GameStop CEO Ryan Cohen capitalized greatly from this