Don’t Fall for These 7 Meme Stocks That Are Heading for a Crash

InvestorPlace2023-09-21

GameStop (GME): GameStop isn’t swashbuckling these days. Tilray (TLRY): Tilray is just bad at business. AMC (AMC): AMC offered a flicker of hope but reality will snuff that out. Keep reading for more ...

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Keep reading for more ...</p>\n\n<a href=\"https://investorplace.com/2023/09/dont-fall-for-these-7-meme-stocks-that-are-heading-for-a-crash/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"PTON","symbol_name":"Peloton Interactive, Inc.","start_time":0,"source_url":"https://investorplace.com/2023/09/dont-fall-for-these-7-meme-stocks-that-are-heading-for-a-crash/","article_id":"2369110878","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2369110878","pubTimestamp":1695241375,"columns":[],"sourceInfo":{"source_id":"investorplace_stock_picks","name":"InvestorPlace stock picks"},"weMediaInfo":null,"summary":"Investors would do well to avoid these meme stocks as they move nearer to a crash in the third quarter.","collect":0,"end_time":0,"defaultTopTitle":"investorplace.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"PTON":"Peloton Interactive, Inc.","BK4585":"ETF&股票定投概念","BK4108":"电影和娱乐","BK4007":"制药","QQQ":"纳指100ETF","SQQQ":"纳指三倍做空ETF","BK4566":"资本集团","BK4557":"大麻股","BK4535":"淡马锡持仓","AMC":"AMC院线","BK4220":"综合零售","BK4577":"网络游戏","QID":"纳指两倍做空ETF","BK4588":"碎股","BK4076":"电脑与电子产品零售","TLRY":"Tilray Inc.","BK4122":"互联网与直销零售","BK4551":"寇图资本持仓","BK4097":"系统软件","BK4547":"WSB热门概念","PSQ":"纳指反向ETF","QLD":"纳指两倍做多ETF",".IXIC":"NASDAQ Composite","BK4548":"巴美列捷福持仓","TQQQ":"纳指三倍做多ETF","BK4127":"投资银行业与经纪业","HOOD":"Robinhood","BK4539":"次新股","BK4190":"消闲用品","GME":"游戏驿站","BK4192":"特殊消费者服务","BK4532":"文艺复兴科技持仓"},"translate_title":"不要被这7只即将崩盘的迷因股票所迷惑","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AMC":1,"WISH":1,"TLRY":1,"PTON":1,"IRNT":1,"HOOD":1,"GME":1,"BODY":1,".IXIC":0.68,"TQQQ":0.6,"SQQQ":0.6,"QQQ":0.6,"QLD":0.6,"QID":0.6,"PSQ":0.6,"NQmain":0.6,"MNQmain":0.6},"content_text":"GameStop (GME): GameStop isn’t swashbuckling these days. Tilray (TLRY): Tilray is just bad at business. AMC (AMC): AMC offered a flicker of hope but reality will snuff that out. Keep reading for more meme stocks that are heading for a crash! \n\n\n\n \n\nSource: Michael Vi / Shutterstock\n\n\n\nDiscovering which meme stocks to avoid can be tricky. \nThese stocks have, for better or worse, become part of the general discussion of the stock market and investments overall. \nThe relatively new class of stocks took off during the pandemic as stimulus checks hit accounts and quarantined youthful investors succumbed to overzealousness. \nThat isn’t to say that a lot of them didn’t make a lot of money. Many did. Nor is it to say that they didn’t have a worthwhile cause in loosening Wall Street’s grip over the markets. \nHowever, we’ve entered a new era. Stimulus checks are a thing of the past. Their effects, however, very much continue to be felt. Interest rates are much higher to combat their effects. \nThat means that capital is more expensive and there are meme stocks to avoid that might not even have been on your radar. \nGameStop (GME) \nSource: 1take1shot / Shutterstock.com\nGameStop (NYSE:GME) has become synonymous with meme stocks and the overall movement. \nThat has prompted lots of capital into the firm. However GameStop’s emergence was predicated on a premise that simply never held water which is why it’s one of the primary meme stocks to avoid.\nRyan Cohen, the activist investor who propelled GameStop into the spotlight and recently was named CEO of the firm, got it wrong from the get-go. \nCohen’s intuition was correct: GameStop needed to get with the times and quickly adapt to the digitization of the gaming industry. That isn’t where things went wrong. It’s simply that Cohen was too late in galvanizing his fans to get behind the firm. \nGameStop invested heavily into growth and digitization, but none of it bore the fruit expected. Some efforts including NFTs and E-commerce have simply missed the mark entirely. \nUnfortunately, GameStop is deep into a period in which growth has taken a backseat to the realities of the current market. \nCost containment is the goal of the day and that means GameStop has become a boring company in the place of a pioneer that sought exciting growth above all else. \nTilray (TLRY)\nSource: viewimage / Shutterstock.com\nTilray (NASDAQ:TLRY) stock continues to garner a lot of attention on the back of the presumed rescheduling of cannabis from a Schedule I controlled substance to Schedule III. \nThat change has many investors speculating that Tilray, as one of the well-known names in the space, will soon break out. I sincerely doubt that will be the case. In fact, I think it’s one of the meme stocks to avoid in the cannabis space. \nTilray has already shown investors that its belief in the cannabis business model was broken when it bought Sweetwater Brewing in 2022. Prior to that, Tilray had merged with Aphria to become the biggest cannabis company in the world.\nWhen that didn’t work and share prices steadily crept lower, Tilray decided to pivot again. It’s now an alcohol/cannabis firm and one that has consistently produced massive losses no matter who it buys or what business it enters.\nTilray reported just under $190 million in revenues in the second quarter leading to a $1.443 billion net loss. If you want to invest in alcohol find a good firm in that space. If you want to invest in a good weed firm, do the same. If you want to invest neither, buy TLRY. \nAMC (AMC)\nSource: rblfmr / Shutterstock.com\nAMC (NYSE:AMC) has shown flickers of a resurgence that could trick investors into buying what is, on par, a bad stock overall. \nBy flickers of resurgence, I mean second-quarter results that superficially looked impressive. \nRevenues increased from $1.16 billion to $1.35 billion and a $121.6 million loss transformed into an $8.6 million gain. However, as positive as those figures are, AMC’s realities are much more negative overall. \nThe company is deeply indebted to the tune of $9 billion. By comparison, its liquidity reserves of $643 million suddenly become woefully meager. \nAMC sold preferred equity that it converted to common equity in order to address that debt. The choice to do so introduces dilution risk. It’s abundantly clear that investors are abandoning ship as those greater truths become more evident. \nDespite the $8.6 million gain in Q2, the company is expected to lose several hundred million this year. What makes this one of the meme stocks to avoid is the decline that many have expected will continue. \nContextLogic (WISH) \nSource: sdx15 / Shutterstock.com\nContextLogic (NASDAQ:WISH) is an inexpensive e-commerce platform known for knockoffs and other inferior products. \nIt is proving that you can only sell junk for so long before it catches up to you. \nAll a reasonable investor needs to do in order to avoid falling for WISH shares is to read its most recent earnings report. The figures were bad and the decline in expectations was even worse. \nRevenues fell by 42% in the second quarter, declining to $78 million. That was far below the $94 million analysts had been expecting. It led to an $80 million loss. That was better than the $90 million loss it posted a year earlier, but certainly nothing to celebrate. \nThe bigger concern is that ContextLogic is declining rapidly. Q3 revenue guidance had been pegged at more than $100 million. Following earnings, it has now been revised downward to a range between $55 to $65 million. It’s a great platform on which to buy gag gifts that were never intended as such, but a terrible place to invest your capital. \nBeachbody (BODY)\nSource: Tada Images / Shutterstock.com\nBeachbody (NYSE:BODY) is a company that was resurrected from its former ashes during the pandemic quarantines that shut down gyms. \nForced inside, fitness enthusiasts sought digital solutions. The resounding success of Peloton (NASDAQ:PTON) paved the way for Beachbody to take its shot. \nThe firm leveraged the success of products like 8-minute abs and P90X and IPO’d in 2021. That IPO looked like it might be successful for all of a week or so, plateaued, and has lost value ever since. Shares have gone from $10 to $0.30. \nRevenues continued to fall rapidly. The lone bright spot is the fact that net losses improved by 39%. However, they’re still substantial at $25.7 million. Beachbody’s liquidity was a bit more than $58 million to end Q2. Quick math suggests that the company cannot continue to hang on for very much longer. \nFurther, Beachbody has faced serious troubles before and operated as an MLM for which it was fined. Its recent rebrand to BODi means absolutely nothing and it is still a firm to avoid at all costs. \nRobinhood (HOOD)\nSource: mundissima / Shutterstock.com\nI’m uncertain whether Robinhood (NASDAQ:HOOD) stock is headed for an imminent crash, but, I  believe it is headed down. \nIf you’ll remember, Robinhood emerged during the pandemic as an alternative trading platform with reduced fees. It took off and gained a lot of traction in the lead-up to its IPO in mid-2021. \nThe IPO was manic, doubling, and then halving in the period of a few days. It has gone down, down, down since but benefitting from a bit of growth in 2023. \nRobinhood’s user base has shrunk, and the platform caters to skilled traders and is no frills. However, Robinhood posted a surprise profit in Q2 that prompted a spike in share prices. \nThe firm went from relying on spread fees to relying on interest-bearing accounts. It’s difficult to understand where it’s going. \nThat makes it difficult for investors to get behind the firm. Further, it’s very possible that the SEC will launch an attack against Robinhood in the future. It’s just too risky. \nIronNet (IRNT)\nSource: Shutterstock\nIronNet (OTCMKTS:IRNT) is a stock headed for an imminent crash. I doubt many readers are seriously considering investing in it at this point anyhow, but those who are, please don’t. \nShares went from $0.22 to $0.03 between July and early September. A few days later, they’re trading at $0.0075. \nThere’s a genuine chance that the value of your capital will decline drastically by establishing a contrarian position. The company announced its intent to delist from the New York Stock Exchange back in July. \nThat was a clear sign that the former meme darling was on its way down. More recently, the company announced plans to cut its workforce and operations while hinting at bankruptcy as a reorganization strategy. \nIt is almost certainly headed to zero in the very immediate future. It is operating with a very minimal staff but who knows how long that will continue. \nIf it doesn’t receive funding it’ll shut down any day. If it does, it’s only valuable for risk-tolerant traders willing to lose money.  \nOn the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.\n\nAlex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.\n\n\nHealthcare, Cannabis, Consumer Discretionary, Technology, Cybersecurity, E-Commerce, Financial, Fintech, Communications, Media, Retail\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nSubmit\n\n\n\n\n\n\n\nArticle printed from InvestorPlace Media, https://investorplace.com/2023/09/dont-fall-for-these-7-meme-stocks-that-are-heading-for-a-crash/.\n©2023 InvestorPlace Media, LLC\n\n\n\n\nSponsored Headlines","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.4","shortVersion":"4.29.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2369110878"}