I Asked ChatGPT for 10 Meme Stocks to Buy. Here’s What It Recommended.
The artificial intelligence (AI) war is on. The rise in popularity among AI image generators like Jasper and DeepAI last year was just the early stages of the much larger boom happening right now.
Tools like OpenAI’s ChatGPT have taken the world by storm, for better or for worse. Now, anybody can go to ChatGPT.
What is a Meme Stock?
A meme stock refers to the shares of a company that have gained viral popularity due to heightened social sentiment.
This social sentiment is usually heightened due to online and social media platforms.
These online communities can dedicate heavy research and resources around a particular stock, and meme stocks often have heavier discourse and analysis in discussion threads on websites like Reddit and posts to followers on platforms like Twitter and Facebook.
Though some belief meme stock communities coordinate efforts to influence the prices of those shares, meme stock shareholders are often an unorganized set of independent individuals, each with their own investment views and preferences.
Collectively, their independent actions have been shown to initiate short squeezes in heavily shorted names. As a result, meme stocks can become apparently overvalued relative to fundamental technical analysis.
How does a Robot Define a Meme Stock?
Meme stocks are an investing category that’s hard to pin down. They aren’t a market sector like tech stocks or EV stocks. They aren’t necessarily small or large in market capitalization.
Instead, they’re all about the “vibe” they project. Meme stocks are more or less decided by the mob of retail investors that buy into them. They are stocks associated with an internet investing culture.
And while they don’t make themselves out to be serious, growth-oriented investments, their volatility has made some lucky investors quite wealthy. This begs the question: Could someone use artificial intelligence (AI) to pick these stocks?
ChatGPT is becoming more and more popular as a search engine of sorts for all manner of questions. The AI chatbot is becoming a popular tool for explaining complex topics, composing emails or outlining essays, line-editing code, and more.
Investors have been taking to the bot, too, to understand topics on investing. In some cases, people have been tasking ChatGPT with coming up with investing insights. Previously, I had asked the chatbot to give its opinions on crypto. This time, I asked it all about meme stocks.
Being an investing class focusing more heavily on “vibes” and less on fundamentals or business models, I was curious to hear how an AI model defined such an investment class.
Moreover, I wanted to know which stocks it thought belonged in the meme stocks class by tasking it to pick out 10 meme stocks to buy. Here’s what I learned.
ChatGPT Defines and Picks Meme Stocks to Buy
I decided to ask ChatGPT how to describe a meme stock as they are so difficult to define. The chatbot, like the majority of us, doesn’t have a strict list of boxes that a stock must check in order to fit the description.
The primary indicator ChatGPT uses to classify a meme stock is its popularity in social media investing communities:
“[A meme stock is] a stock that has become popularized and heavily traded due to its association with a popular internet meme or social media trend. These stocks are often characterized by significant volatility and sudden price surges or drops, driven by social media buzz and online discussions rather than traditional financial metrics such as earnings or revenue.”
This is honestly one of the best ways to define the trend. When I asked it to name 10 meme stocks with high growth potential, its list was wildly mixed.
The only thing really linking these stocks together was the fact that they have all had or currently are having social media moments. Here are the stocks it named:
- GameStop (NYSE:GME)
- AMC Entertainment (NYSE:AMC)
- BlackBerry (NYSE:BB)
- Nokia (NYSE:NOK)
- Bed Bath & Beyond (NASDAQ:BBBY)
- Tesla (NASDAQ:TSLA)
- Palantir Technologies (NYSE:PLTR)
- Virgin Galactic Holdings (NYSE:SPCE)
- Beyond Meat (NASDAQ:BYND)
- Moderna (NASDAQ:MRNA)
When I asked the chatbot to elaborate on its meme stock picks a bit more, its reasoning was more or less the same across each stock. For the most part, they are not alike at all.
These companies deal in retail, movie theaters, pharmaceuticals, space travel, fake meat, etc. What binds them together is that they’re not just popular with retail investors but have each been picked up heavily across social media channels.
On the date of publication, Brenden Rearick did not hold (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.
Brenden Rearick is a Financial News Writer for investor places Today’s Market team. He mainly covers digital assets and tech stocks, with a focus on crypto regulation and DeFi.
Frequently Asked Questions: FAQs
Q: Can ChatGPT be used for stock trading?
ChatGPT could have several applications for companies in financial markets, from providing overviews of investing strategies to providing stock picks. But JPMorgan has limited use of ChatGPT among traders because it’s worried that sharing sensitive financial information with the tool will ring regulators’ alarm bells.
Q: What are the original meme stocks?
GameStop (GME) is widely regarded as the first meme stock, whose stock price rose as much as 100× over the course of several months as members of its meme community crafted a spectacular short squeeze. Meme stocks have generated their own slang and language used in online forums and social media.
Q: Can I buy shares in ChatGPT?
If you are interested in finding out how to invest in ChatGPT, the only way to go about it is through AI stocks. While the company itself is not listed on the stock exchange, many other options are available to investors.
Q: Who owns ChatGPT?
ChatGPT is an artificial intelligence chatbot developed by OpenAI and launched in November 2022. It is built on top of OpenAI’s GPT-3 family of large language models and has been fine-tuned (an approach to transfer learning) using both supervised and reinforcement learning techniques.
Q: What is the best meme stock?
One meme stock seems to be running away from the pack in 2023: MicroStrategy. Shares of the software analytics company are up an astounding 75% this year so far.
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