This Analyst Explains Why Tesla Is Not A Typical 'Meme Stock' And Which Sectors Will Drive The Next Frenzy

Dave Mazza, managing manager and caput of merchandise at Roundhill Investments, discussed the evolving scenery of meme stocks betwixt 2021 to 2025 and however the power of retail investors volition specify the conception this year.

Mazza, during an interrogation with the Schwab Network connected Tuesday, highlighted that the meme stocks, which initially represented Main Street’s conflict against Wall Street, to absorption on stocks with precocious abbreviated interest and dense hedge money ownership, specified as GameStop Corp. (NYSE:GME) and AMC Entertainment Holdings Inc. (NYSE:AMC).

He noted that successful 2025, meme stocks person shifted to much speculative areas of the market, including nuclear, cleanable energy, and crypto-related stocks. Despite this shift, retail investors proceed to power the market, arsenic seen successful the resurgence of meme stocks like OpenDoor (NASDAQ:OPEN) and Krispy Kreme (NYSE:DNUT).

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Over the past year, OpenDoor banal soared 330.43%, portion Krispy Kreme declined 54.33%.

Mazza besides emphasized that retail investors, who accounted for 8-10% of U.S. equity market volume earlier the pandemic, surged to 20-25% successful 2025, and adjacent reached 35% astatine times. He cautioned organization investors against disregarding retail capitalist behaviour due to the fact that they are present much informed and educated, with a broader scope of trading options.

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As for the aboriginal of meme stocks, Mazza suggested that the precocious valuations of hyper-growth stocks are justified by their beardown gross and net growth. He urged investors to stay cautious without penning disconnected these valuations entirely, noting that emerging areas specified arsenic atomic vigor and quantum computing could substance the adjacent question of meme stocks successful 2026.

When asked astir the favoritism betwixt the overvalued Tesla (NASDAQ:TSLA) banal and different meme stocks, Mazza pointed retired that Tesla’s valuation is based connected its aboriginal potential, peculiarly its ventures into humanoid robotics and robotaxis. He noted that Tesla has a loyal retail and organization capitalist base, which believes successful the company’s transformative potential.

Interestingly, Yale School of Management Senior Associate Dean Jeff Sonnenfeld had called Tesla the “biggest meme stock” ever. He criticized Tesla's valuation, noting its price-to-earnings ratio exceeds 200 and arguing investors spot excessively overmuch religion successful Elon Musk. He besides called the board's caller compensation program for Musk foolish and reckless, informing it could yet wounded shareholders.