Here we go again: Meme stocks are taking off. But the big winners are a somewhat different group of stocks this time — and are beating the S&P 500.

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Ten stocks in the Roundhill Meme ETF (MEME) — including MicroStrategy (MSTR), Peloton Interactive (PTON) and Coinbase (COIN) — are up 19% or more just this year so far, says an Investor’s Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith. That’s well above the S&P 500’s 5% gain this year.

Such a sudden surge in meme stocks is the most dramatic sign yet of the return of speculation roaring back into markets this year. But it’s not the only one. ARK Innovation (ARKK), Cathie Woods’ ETF owning high-risk growth stocks, is up more than 21% this year, making it the No. 1 actively traded diversified ETFs this year, says Morningstar Direct.

“2023 started with a rush of data and macro themes driving ‘risk on’ price action,” says a report by Bank Of America analyst Paul Ciana.

Meme Stock Mania: 2023 Style

It’s not just a few lucky meme stocks that are soaring this year.

The Roundhill Meme ETF, which contains 25 stocks widely driven by buzz from social media, is up nearly 20% this year. And of the 25 stocks, 20 are higher — and some by quite a bit. The average stock in the meme ETF that’s up this year has gained nearly 20%. It’s important to note, though, that these same meme stocks plunged an average of 30% last year. And the Roundhill Meme ETF itself dropped by 64% last year.

The meme universe is changing, too. Of the stocks in the ETF, 14 are expected to make money this year. Additionally, a number of the new generation of meme stocks are grown up enough to be in the S&P 500, including Moderna (MRNA), Occidental Petroleum (OXY) and Enphase Energy (ENPH). It’s important to note, though, that Enphase is down this year by 13%.

But that’s not where the big gains are.

Big Meme Winner This Year? MicroStrategy

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. It seems to be a case of investors looking forward to a brighter future after a dismal 2022. Shares of the stock plunged more than 70% in 2022 as the company’s fundamentals fell apart. Last year’s bottom line is expected to fall into the red by an unadjusted $495.1 million. Revenue in 2022 is expected to fall nearly 3%.

But business is looking up in 2023. Analysts think the company will return to profitability, making an adjusted $37 million on slightly higher revenue of $504.6 million.

Comeback For Meme Stocks?

The other top rallies in meme stocks are also cases of investors hoping for a comeback.

Take exercise equipment maker Peloton Interactive. Shares are up nearly 47% this year as investors figure the company has a path forward.

Shares plunged 74% in 2022 following a string of disappointing quarters and quality concerns. But investors also appear to be racing ahead of reality on this one. The company’s adjusted losses per share are seen extending not just in 2023, but in 2024, 2025, 2026 and 2027, too.

Over at cryptocurrency firm Coinbase, the story is similar. Shares are up 58% this year, following an 86% beatdown in 2022 amid crashing Bitcoin prices. Investors, here, also seem hopeful for a turnaround. But it’s going to be a long wait. Analysts expect the company, which made an adjusted $17.10 a share in 2021, to lose $6.76 a share in 2022 followed by additional losses in 2023, 2024, 2025 and 2026.

Interestingly, though, this new group of meme stocks is stealing the attention from the old favorites. AMC Entertainment (AMC), on pace to lose nearly $500 million in 2023, is only the fourth best stock in the meme ETF, up 43% this year. And GameStop (GME), following a 50% plunge in 2022, is up 20% this year, landing it tenth. Analysts think the struggling mall-based video game seller will lose $180 million on an adjusted basis this year.

So while meme stocks are coming back, they’re not the same types of companies and many still face tough odds.

Top Meme Stocks So Far

Stocks in the Roundhill Meme ETF that are up the most in 2023 to date

Sources: S&P Global Market Intelligence, IBD