Suddenly, meme stocks — made famous by the 2021 GameStop saga — are back.
CHONGQING, CHINA - JUNE 08: In this photo illustration, the logo of GameStop Corp. is displayed on a ... More
Shares of Kohl’s and Opendoor Technologies have soared after Reddit and X hosted posts from investors aiming to drive up the heavily shorted shares, according to the Wall Street Journal.
Locafy Limited — a SaaS company “specializing in proximity-based search engine optimization for local businesses,” notes RTT News — says its U.S. AI partnership will help boost revenue in the $600 billion SEO market.
Locafy — nearly 60% of its shares are sold short, according to the Journal — also faces risks including a going concern letter from its auditor, according to an SEC filing, liquidity issues, and a September 2025 deadline to retain its Nasdaq listing, according to a company release.
Suddenly, Meme Stocks are back.
For example, Opendoor Technologies — which traded at about $1 a share last week — has since soared 144%. On July 14, hedge-fund manager Eric Jackson said in an X post “that his firm EMJ Capital has taken a position in the stock,” the Journal reported.
On July 22, shares of department store chain Kohl’s — which has suffered from declining revenue and about 50% short interest — took off. That’s the day a subreddit forum user named Hot-Ticket9440 wrote of Kohl’s “Let’s goo!!,” the Journal reported.
This raises the question: Where will the Meme Stock crowd go next?
One place to look could be Locafy Limited — whose shares have fallen 91% since going public in March 2022. Locafy — which last published financial statements for its September 2024-ending quarter — when the company posted a 28% decline in revenue to $518,000 and a $36,000 loss.
While Locafy also suffers from the other risks listed above, there is potential good news for bulls. For example, at the end of June, Locafy stock soared 300% after reporting a partnership to provide “digital business listings for approximately 10,000 U.S. end users,” RTT News reported.
While the shares have since lost about half their peak value, the company’s 60% short interest suggests Meme Stock potential. I asked Locafy the following questions:
I will update this post if I receive a reply from Locafy.
Founded in in 2009, Locafy is a digital publisher and SEO agency. With a market capitalization of $8.4 million, the company’s digital properties include Hotfrog, AussieWeb, and SuperPages and its SEO Agency provides services for third-party digital properties.
Here are three tailwinds that could boost Locafy’s revenue:
In addition to the going concern qualification of Locafy’s financial statements and the September 2025 deadline to submit a compliance plan to avoid delisting, Locafy is facing five powerful headwinds, including:
With such a heavy short interest, how many posts along the lines of Skip Tradeless’s July 22 X missive — “$OPEN has GameStop vibes written all over it” — would it take for shares of Locafy to rise?
Disclosure: I have no financial interest in the securities mentioned in this post.