Stocks to sell

3 Meme Stocks That Could Cost You as Much Money as GameStop and AMC.

After an unexpected rally sent meme stocks surging last week, things appear to have settled down. When Keith Gill — the man credited with helping launch the GameStop (NYSE:GME) short squeeze of 2021 — unexpectedly returned to X, the r/WallStreetBets crowd rejoiced. This momentum sent meme stock favorites like GME and AMC Entertainment (NYSE:AMC) to impressive heights. However, predictably, the trading frenzy has since run out of steam.

Halfway into this week, the meme stocks that skyrocketed on the back of the Roaring Kitty rally are mostly back in the red. Indeed, GME investors have lost $13 billion since last week. InvestorPlace contributor Chris MacDonald recently speculated about the flash-in-the-pan nature of the rally:

“Consumers are strapped for cash, and these $13 billion of losses (much of which will be borne by retail traders) will likely make any future short squeezes in such names less likely. Given the market capitalizations of these companies, and the sheer number of shares in existence, it’s my view the meme stock rally has fizzled for now in these two names.”

With both GME and AMC back in the red for the week, it should go without saying that neither is a good investment. But they aren’t the only meme stocks investors should approach with extreme caution. Plenty of other companies that surged last week have failed to sustain the momentum. This should serve as a reminder of just how unstable most meme stocks truly are — with a few names standing out as particularly weak.

Meme Stocks to Sell: BlackBerry (BB)

BlackBerry Limited logo. Company was originally known as Research In Motion (RIM), a Canadian software company specializing in cybersecurity.. BB stock

Source: Poetra.RH /

This company has enjoyed a meme stock status similar to that of GameStop and AMC. For all of its problems now, though, BlackBerry (NYSE:BB) hasn’t always been a clear loser.

In 2008, before the iPhone made BlackBerry’s product almost obsolete, BB stock traded at more than $130 per share. Today, shares trade at less than $3 apiece — and that’s after rising last week.

Like most meme stocks, BlackBerry hasn’t displayed any actual growth in a long time. Transitioning away from smartphones and focusing on cybersecurity and software production hasn’t helped the firm stay relevant, even as these markets have grown. As of now, there’s nothing to indicate that BlackBerry will pull itself back above penny stock price levels and stay there.

Beyond Meat (BYND)

Editorial photo on Beyond Meat (BYND) theme. Illustrative photo for news about Beyond Meat - a producer of plant-based meat substitutes. BYND stock

Source: photo_gonzo /

Of all the meme stocks to sell, this one truly had potential when it first burst onto the scene. Beyond Meat (NASDAQ:BYND) entered the market at a time when people believed that plant-based meat would become a game-changing industry. Years later, these predictions are proving incorrect.

Plant-based meat sales declined in 2023 and things aren’t looking better this year. But Beyond Meat’s problems are mostly company-specific. InvestorPlace contributor Thomas Niel reports:

“These days, BYND stock is considered to be one of the stocks at risk of bankruptcy, largely due to $1 billion in convertible debt issued during better times. That debt comes due in 2027. As BYND trades at prices well below the conversion price of this debt, Beyond Meat will undoubtedly need to redeem these notes in cash.”

Given how poorly BYND stock has performed lately — down 32% over the past one year — it will also likely be hard for even speculative traders to find a reason to bet on shares. That’s particularly true as the threat of bankruptcy looms.

Meme Stocks to Sell: Crown Electrokinetics (CRKN)

network server room with computers for digital tv ip communications and internet,3d rendering. Tech stocks

Source: Connect world /

If you hadn’t heard of Crown Electrokinetics (NASDAQ:CRKN) prior to last week, don’t worry. Most investors probably haven’t. This little-known company specializes in smart glass technology, which it claims has environmentally friendly applications.

Unfortunately for investors, this hasn’t kept CKRN stock elevated. Shares have fallen more than 98% over the past year, now trading at around 14 cents apiece.

Last week brought some much-needed momentum to CRKN as meme stocks surged, but that doesn’t make Crown Electrokinetics a good buy. As the dust settles, it’s impossible to ignore the fact that this company has reported steep losses and little revenue, leading to a concerning financial outlook. Even after surging more than 95% over the past five days, this micro-cap name still trades at such low levels that even the retail crowd may see it as too risky.

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Read More:Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Samuel O’Brient did not hold (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 Publishing Guidelines.

Samuel O’Brient is a Reporter for InvestorPlace, where his work focuses primarily on financial markets, global economic trends, and public policy. O’Brient writes a weekly column on recent political news that investors should be following.