So-called meme stock trading is gaining steam once again, and several of the most popular stocks among social media traders have great upside potential, according to Wall Street analysts. Meme stock trading first rose to prominence in early 2021, when retail traders discussed their moves in stocks like GameStop and AMC Entertainment on Reddit’s WallStreetBets page. Some of those same stocks, along with new social media favorites, have gained momentum in recent weeks. A quick way to check the pulse of social media-driven traders is the Roundhill Meme Stock ETF (MEME). The exchange-traded fund tracks a custom index of 25 equally-weighted stocks that have high short interest and generate a lot of conversation on social media. The index rebalances every two weeks, according to Roundhill’s website. The ETF itself hasn’t proven popular, with less than $3 million in assets, but many of the stocks it owns have been big winners. The MEME fund has a total return of about 60% year to date and is up more than 12% in July alone. YTD MEME Mountain So-called “meme” stocks are rallying again in 2023. The meme stock with the biggest lead, according to Wall Street analyst targets compiled by FactSet, is battery maker Enovix. The stock is already up more than 50% this year and is forecast to rise another 52%. Enovix has high short-term interest, with a total of 28.8% of the shares available for trading, according to FactSet, which means that social media operators could see it as a short-term candidate. The holding company with the second largest advantage is Penn Entertainment, with 35.2%. Penn is the parent company of Barstool Sports, whose founder Dave Portnoy became one of the faces of the original meme stock craze by talking about his trading day on YouTube. There are some surprise names in the ETF. The airlines may not be obvious meme stocks, but Delta Air Lines and Spirit Airlines are holdings in the fund. Wall Street analysts see the upside for those stocks at 26% and 16%, respectively. To be sure, Wall Street analysts are bullish on less than half of the holdings in the MEME ETF. In fact, they see a significant downside to some of the more prominent meme stocks. Consumer loan company Upstart is down 70% after a furious rally, according to FactSet. Analysts also see AMC Entertainment and GameStop as significantly overpriced.