3 Meme Stocks With the Most Potential for a Major Comeback

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  • These three meme stocks could be poised for another 2021-esque move in 2023.
  • Bed Bath & Beyond (BBBY): Investors see this plummet in BBBY stock as an opportunity to invest in this stock at a dip.
  • BlackBerry (BB): Blackberry announced that it would be expanding its use of Amazon (AMZN) Web Services, which will further grow its QNX technology.
  • Robinhood (HOOD): Robinhood has officially released an updated mobile wallet app that supports both cryptocurrencies and non-fungible tokens (NFTs).
meme stocks - 3 Meme Stocks With the Most Potential for a Major Comeback

Source: Spyro the Dragon / Shutterstock

Meme stocks have been on quite the recovery rally of late. This rally comes as investors rebalanced their expectations about the possibilities for continued high inflation and the likelihood of a domestic recession. Other risk indicators have reset, with a bullish macro environment building.

Shares in some of the market’s hardest-hit sectors rallied sharply, with technology, growth, and meme-related stocks leading the charge. AMC Entertainments Holdings Inc. (NYSE:AMC) led the way in meme stocks, with shares of the nation’s most prominent movie chain operator rising 69% during the same period.

Meme stocks are stocks that experience a sudden price jump due to increased popularity due to social media push. These stocks witnessed a massive, sudden surge due to increased social sentiment caused due to social media platforms.

While meme stocks aren’t significant in and of themselves, it’s clear that some surpluses and urges from the pre-rate trek era haven’t been entirely excised. While the hostile pace of interest rate hikes in 2022 has dampened speculative activity, the impulse hasn’t gone away completely. Many analysts believe there could be a revival of some of the meme stocks.

Investors who are interested in these stocks can consider these options as they are up for a potential comeback in 2023.

BBBY Bed Bath & Beyond $2.55
BB BlackBerry $4.37
HOOD Robinhood $10.39

Bed Bath & Beyond (BBBY)

bed bath & beyond storefront (BBBY)
Source: Shutterstock

One of the more popular meme stocks of late, Bed Bath & Beyond (NASDAQ:BBBY), has indeed shown some of the best price action of its meme stock peers. Certainly, concerns about bankruptcy haven’t deterred buyers from taking a chance on the troubled stock.

Bed Bath & Beyond reported a massive 42.2% slump in net income as per the Q3 results. In the trailing 12 months period, it spent $607.4 million on day-to-day operations alone. This is risky for the company, as its cash and cash equivalents amounted to only $153.5 million at the end of November.

Some investors see this as a bearish opportunity to invest in a beaten-down stock. Bed, Bath & Beyond Inc shares have recently flipped in high volume amid retail investors’ speculation that the struggling home goods retailer could be a potential investment target. Three analysts recommend “hold,” eight recommend “sell,” and two recommend “strong sell” of the company’s stock. The median price target is now $2, down from $3 a month ago.

BlackBerry (BB)

Source: Shutterstock

Among the meme stocks that’s fallen out of the purview of many investors is BlackBerry (NYSE:BB). The former smartphone king, BlackBerry, has since been relegated to a little-thought-of Canadian software company.

That said, BlackBerry is an appealing stock to add to one’s portfolio to combat present economic and geopolitical uncertainty and risk while benefiting from its solid fundamentals and growth prospects.

BB has a strong track record of surprising people. Earnings have outpaced analyst estimates in three of the last four quarters, with an average margin of 41.4%. BlackBerry anticipates Internet of Things (IoT) revenues in the $205-$210 million range for fiscal 2023, representing 15% to 18% year on year growth. Due to the increased adoption of security products, cyber business billings are expected to grow by 8-12%.

BlackBerry’s QNX software is now used in over 215 million vehicles. The rising centralization of digital cockpits and the deployment of advanced driver assist systems in the automotive sector bodes well for BlackBerry.

BB announced that it would expand its use of Amazon (NASDAQ:AMZN) Web Services, further growing its QNX technology. Blackberry’s QNX technology will be available to developers in the cloud, allowing them to reduce time to market for mission-critical integrated systems.

Robinhood (HOOD)

Robinhood's mobile app logo is displayed on a smartphone screen. Robinhood stocks
Source: OpturaDesign / Shutterstock.com

Shares of Robinhood (NASDAQ:HOOD), which have fallen 35% in the last year, are expected to rise as the economy recovers. A broad recovery in cryptocurrency and increased interest in options will help Robinhood’s transactional earnings recover. Furthermore, rising interest rates are assisting Robinhood’s spread. Net interest income now accounts for one-third of Robinhood’s revenue.

As the business faces significant risks, the stock price of Robinhood fell by over 55% in 2022. The stock dropped to a low of $7.60, the lowest rate since June 23rd. As of writing, it has fallen by more than 90% since its all-time high, making its total market cap about $7.22 billion. Some investors, however, see this as an opportunity to invest in this meme stock, which has skyrocketing potential.

Furthermore, Robinhood has officially released an updated mobile wallet app that supports cryptocurrencies and non-fungible tokens (NFTs). The new wallet will enable users to own and regulate their decentralized assets and swap cryptocurrencies without incurring network fees.

On the date of publication, Chris MacDonald 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.


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