Could “PARC” Be the New Wall Street Sensation?
Last week, a fresh acronym emerged on Wall Street, introduced by CNBC’s commentator Jim Cramer.
Jim Cramer, noted Wall Street analyst, recently coined “PARC,” an acronym representing four of the most dynamic momentum stocks: Palantir, Applovin, Robinhood, and Coinbase.
In a recent post on X, Cramer introduced the acronym as a nod to the meme stocks that just keep soaring. These stocks have emerged as core performers over the past year, boasting 12-month returns from 50% to over 400%.
According to data from Vanda Research, Palantir and Robinhood secured the third and fourth spots in popularity among individual investors in the first semester. All four stocks are featured among the top 30 with the most call option trading during the same period, indicating their appeal to savvy, risk-embracing retail investors.
The significant outperformance of these stocks over the past year has rendered them among the most costly issues on Wall Street.
Speculation arose among users that Cramer’s endorsement of the “red-hot four” under PARC might spell trouble for the group. “A humorous (yet often valid) contrarian indicator has long been Jim Cramer’s selections… Could these stocks, achieving all-time highs, surmount the JC affection, or does it foretell a downfall for them?” one user pondered.
However, these doubts haven’t materialized; since Cramer’s endorsement, all four stocks have appreciated between 2% and 5%. Notably, it wasn’t the case for a previous acronym popularized over ten years ago by Cramer.
Netflix stocks, for instance, have surged over 9,000% following Cramer’s recommendation, while Meta and Amazon stocks have appreciated over 2,400% and 1,600%, respectively. Alphabet, one of the globe’s largest enterprises in 2013, has witnessed a return exceeding 500%.
The stocks remain highly favored among retail investors, who often are willing to pay a premium for owning shares in the buzzworthy realm of AI and cryptocurrencies.
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