This Meme Stock Just Raced Past GameStop As The New Money Machine

 This Meme Stock Just Raced Past GameStop As The New Money Machine

Still think GameStop (GME) is the moneymaking Meme-stock to own? That’s so January; the crowd has moved on.




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Support.com (SPRT) erupted out of nowhere this month and is suddenly stealing the Reddit-crowd’s affection. And for good reason: It’s fast pushing GameStop aside. Shares of Support.com are up 1,583% just this year. That puts it ahead of the still-impressive 1,041% year-to-date rise of GameStop.

Just Monday, SPRT stock is up 9.78, or nearly 40%, to 36.10. Shares are up more than 200%, just in the past month.

And now, Support.com is the No. 2 top stock among all the stocks in S&P 1500 and S&P Completion indexes this year. And it’s making a run at the No. 1 spot still hung onto by AMC Entertainment (AMC) with its 2,017% gain this year.

And that difference is adding up to real money. Had you plunked down $10,000 on Support.com in January, it would now be worth $168,319. That’s already nearly 50% more than you would have made in that time on GameStop. And it’s only 25% shy of the $211,698 you’d have if you owned AMC Entertainment.

Support.com Comes Out Of Nowhere

What is Support.com? It’s a tiny $638 million in market value company that provides tech support for employees who work from home. Yes, they’re the people who tell you to reboot your computer when your email isn’t working.

And this is certainly not a company on Wall Street’s radar. There are no current analysts following the stock, says S&P Global Market Intelligence. That means there are no valid earnings or revenue estimates, much less a price target.

The company reported having total assets of $46 million and liabilities of $5.7 million at the end of the last quarter in June. And during the period, it reported a net loss of $799,000 on revenue of nearly $8 million. Keep in mind, it made $617,000 in the same year-ago period on 33% higher revenue.

The company is due to report its next quarterly results on Nov. 12. It’s not in any major market indices, such as the S&P Small Cap 600, much less the S&P 500.

What’s The Draw Of Support.com?

Investors are looking to Support.com as the latest opportunity to rush into a stock with heavy short interest and run it up.

More than 25% of Support.com’s shares outstanding are still in the hands of short-sellers. That’s much higher than the 18% of AMC Entertainment shares being shorted and just 10% of GameStop.

When a stock is heavily shorted like Support.com, bearish investors borrow the stock and sell the shares. But if the stock rises, these shorts are forced to buy the shares back. If they don’t, they face unlimited losses. The scramble by nervous shorts to buy the stock can cause an explosive rally.

Savvy investors know to look for growth companies with solid fundamentals and stock action. That is not Support.com. But investors are enjoying the ride for now.

Which Stocks Turned $10,000 Into The Biggest Gains?

S&P 1500 and Completion Index stocks up the most this year so far

Company Symbol Stock YTD % ch. What $10,000 invested this year is worth now
AMC Entertainment (AMC) 2,019.3% $211,934
Support.com (SPRT) 1,560.5% $166,045
GameStop (GME) 1,039.4% $113,941
Vertex Energy (VTNR) 924.9% $102,487
Cassava Sciences (SAVA) 666.1% $76,613
Sources: IBD, S&P Global Market Intelligence

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