The hype train is always talking about meme stocks set for a rebound on Reddit (NASDAQ:RDDT). I try my best to avoid these large echo chambers of misinformation. Such online forums tend to rely on an overall manipulation of individual trust to garner attention for a larger movement. That doesn’t mean, however, that subreddits such as r/WallStreetBets, and r/MemeStockMarket aren’t valuable places to catch a lead for which stocks might be worth keeping an eye on.
As a general disclaimer, however, I am not writing this to promote these stocks or this method of stock market research. Rather, I would like to see if any of these meme stocks have any real merit for investors who are cautious about analyst sources. Furthermore, the financial earnings reports of these companies represent low-cost, high-potential stocks, should they continue to develop over the next decade. Thus, here are three meme stocks that are popular on Reddit and may have genuine return potential in the coming decade.
Digital Ally (DLGY)
Focused on catering to the audio and video needs of the law enforcement market, Digital Ally (NASDAQ:DGLY) has been gaining popularity in investing subreddits. One Redditor has postulated that the company’s stock value has gone up as a result of recent protests in the U.S. against the government’s stance on Israel and Palestine.
While it is difficult to correlate the two without real-time sales numbers of Digital Ally’s products, the protests and law enforcement’s handling of them underscore the importance of body cameras and recording devices for cataloging police interactions. Depending on the potential of another police brutality scandal, DGLY’s stock value could go up if a nationwide incident occurs.
Furthermore, as local governments across the U.S. expand their police forces as a result of population growth, Digital Ally’s new in-car camera systems could prove a lucrative source of revenue. As such, the stock could rebound from its current price should it continue to gain attention.
Mullen Automotive (MULN)
As far as electric car companies go, I tend to recommend staying away from small-cap stocks like Mullen Automotive (NASDAQ:MULN). However, conversation regarding the stock has been active for quite some time on r/MemeStockMarket, deeming it one of the next meme stocks to watch. This sentiment is likely spurred on by the potential release of the company’s first passenger electric vehicle (EV), the Mullen Five.
Currently, at a price of around $6.00 a share, Mullen Automotive would be a real moonshot for investors should the company release a successful EV. While the company has garnered interest, with sales set to begin in 2025 after large-scale production, it is impossible to predict if the car will be a success.
However, with an estimated price near $300,000 per vehicle, it’s clear that Mullen Automotive intends to serve a very narrow market of drivers in the U.S. interested in a luxury EV. Thus, depending on consumer reception, MULN could be one of the meme stocks poised for a rebound.
Vistagen Therapeutics (VTGN)
A late-clinical stage biopharmaceutical company focused on developing medications for neurological diseases, Vistagen Therapeutics (NASDAQ:VTGN) is another popular topic of discussion on Reddit. The company’s primary mission is to support the treatment of anxiety and depression, which are two of the most pressing conditions affecting Western nations.
The stock has not garnered as much attention on Reddit forums as others, but every so often, individual posters will mention it in an attempt to start a discussion. Moreover, Vistagen’s most advanced drug candidates intend to treat anxiety disorders, particularly Social Anxiety Disorder (SAD), and depression. Its lead candidate, fasedienol, is currently in Phase 3 clinical trials for treating social anxiety disorder, and could potentially receive FDA approval if all goes well.
Overall, the company has dropped dramatically from what it was once worth, much like other meme stocks. Yet, like many pharmaceutical companies, VTGN just needs one drug to prove effective in order to see stunning returns.
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On the date of publication, Viktor Zarev 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.
