Tupperware Gets a Seat at the Meme Stock Table as Investor Interest Hots Up

Tupperware (TUP) has seen share prices surge more than 450% over the past month as retail investors pile into the heavily-shorted stock, making the plastic container maker the newest entrant to the meme stock category.

No Reason For Share Gain Amid Troubles

The price movement occurred with no discernible cause, though there has been chatter about the stock on Reddit and other social media sites. Some investors believe that a high-inflation environment will encourage people to eat out less and cook more, increasing the use and purchases of Tupperware products.

As recently as June, Tupperware was at risk of delisting from the NYSE for the failure to meet the exchange’s requirements as its share price fell below a dollar and its market cap dropped under $50 million for a 30 trading day period. Earlier this month, Tupperware brought on investment from Blackrock (BLK) to shore up its finances.

What’s Up With Other Meme Stocks?

While some of the initial cohort of meme stocks, such as Gamestop Corporation (GME) and Blackberry (BB) are up year to date, they aren’t quite seeing the retail buying frenzy witnessed at the peak of meme stock craze a couple of years ago.

Bed Bath & Beyond Inc. (BBBY), another original member of the meme stocks, will have to wait for its fortunes to turn after its assets were acquired by Overstock (OSTK) during bankruptcy proceedings in June.

As the market continues to adjust to the rising rate environment, meme stocks have once again found themselves in the spotlight for serious gains.

The Listed Funds Trust Roundhill MEME ETF (MEME), which counts Carvana Co. (CVNA), AMC Entertainment Holdings, Inc. (AMC), Palantir Technologies Inc. (PLTR) and Draftkings Inc. (DKNG) among its holdings, is up by about 75% YTD. The index selects for stocks that exhibit elevated social media discussion as well as high short interest, two conditions that can precipitate a short squeeze to send a stock rocketing to the moon.

The SoFi Social 50 ETF (SFYF) and Vaneck Social Sentiment ETF (BUZZ), which also track social media discussion but do not weight for short interest, are respectively up 56% and 48% year-to-date (YTD).

Looking across all three funds, Upstart Holdings Inc. (UPST), Palantir, Carnival Corp. (CCL) and Nvidia Corp. (NVDA) are some of the top holdings. All of these stocks have climbed the chart this year, notching anywhere from 70% to 430% worth of gains.