Ritholtz Wealth Management's Josh Brown created a new index that tracks the most popular stocks in some of the hottest themes of the market.
What To Know: Last Tuesday on "The Compound & Friends" podcast, Brown set the stage for unveiling the "Degen Dow."
"I think that if we were to make a list of the biggest themes of 2024, one of those themes would have been degeneracy," Brown said.
It's tough to say precisely how the word "degen" came to be, but some believe it originates from the term "degenerate gambler" in sports betting and gambling culture, according to The Wall Street Journal.
It's also used by crypto traders and meme-stock traders who often make risky short-term bets based on momentum and steer clear of traditional ways of assessing investments.
Brown put together a list of the top stocks used as trading vehicles by "degen" traders using platforms such as Robinhood, Stocktwits and Reddit's WallStreetBets. The list includes high beta Bitcoin (CRYPTO: BTC)-related names, gaming and gambling companies, AI names, space theme plays, Cathie Wood favorites and president-elect Donald Trump-related stocks.
"All the major degen food groups are represented," Brown said.
Here's a look at all of the stocks that made it into the "Degen Dow."
- Archer Aviation Inc (NYSE:ACHR)
- AMC Entertainment Holdings Inc (NYSE:AMC)
- Applovin Corp (NASDAQ:APP)
- Coinbase Global Inc (NASDAQ:COIN)
- Carvana Co (NYSE:CVNA)
- Trump Media & Technology Group Corp (NASDAQ:DJT)
- DraftKings Inc (NASDAQ:DKNG)
- Flutter Entertainment Plc (NYSE:FLUT)
- Geo Group Inc (NYSE:GEO)
- GameStop Corp (NYSE:GME)
- Hims & Hers Health, Inc (NYSE:HIMS)
- Robinhood Markets, Inc (NASDAQ:HOOD)
- Lucid Group, Inc (NASDAQ:LCID)
- MARA Holdings, Inc (NASDAQ:MARA)
- MicroStrategy Inc (NASDAQ:MSTR)
- NVIDIA Corp (NASDAQ:NVDA)
- PagerDuty, Inc (NYSE:PD)
- Palantir Technologies Inc (NASDAQ:PLTR)
- Roblox Corp (NYSE:RBLX)
- Reddit, Inc (NYSE:RDDT)
- Riot Platforms, Inc (NASDAQ:RIOT)
- Rivian Automotive, Inc (NASDAQ:RIVN)
- Rocket Lab USA, Inc (NASDAQ:RKLB)
- Rumble Inc (NASDAQ:RUM)
- Super Micro Computer Inc (NASDAQ:SMCI)
- SoFi Technologies, Inc (NASDAQ:SOFI)
- SoundHound AI, Inc (NASDAQ:SOUN)
- Tesla, Inc (NASDAQ:TSLA)
- Unity Software Inc (NYSE:U)
- Vistra Corp (NYSE:VST)
Why It Matters: Brown equal-weighted the basket of stocks in the index to track performance. The index actually declined more than 80% from the highs in late 2021, but it has formed a base and appears to be breaking out to the upside with gains of nearly 50% since the start of the year.
"Look how it's like turning up ... this thing is ripping into year-end," Brown said, to which his co-host Michael Batnick replied, "I want to get long."
Brown noted Nvidia and Reddit are the only two names on the list he currently owns.
- GameStop Q3 Earnings: Revenue Miss, $4B+ Cash, No More Offerings Planned In Fiscal Year
Photo: Shutterstock
