2023 hasn’t been a good year for meme stocks so far. Popular retail investor favorite Bed Bath & Beyond (NASDAQ:BBBY) recently filed for bankruptcy. Things aren’t much better for Mullen Automotive (NASDAQ:MULN), which has continuously failed to garner any momentum. And while speculation regarding another AMC Entertainment (NYSE:AMC) short squeeze just won’t die down, there’s still no real reason to bet on it. Another market loser has been Meta Materials (NASDAQ:MMAT), a company embroiled in scandals that have proven that no amount of social media hype can resurrect it.
No matter how much the r/WallStreetBets crowd piles into these unstable companies and their “stonks,” most seem to have little hope. However, even as short squeeze hopes evaporate, there are several meme stocks to buy for patient investors.
As it stands, retail investor focus is on the tech sector right now. That’s understandable, given the current earnings season. According to data from ApeWisdom, interest in Snap (NYSE:SNAP) has been rising since the company reported disappointing Q1 earnings. While there are still meme stocks to buy for long-term gains, none of the more stable companies rank among the most popular companies across social media forums. But that doesn’t mean investors should be considering them over companies temporarily rising on short squeeze speculation.
Let’s take a look at the meme stocks that can actually offer investors the potential for sustainable growth beyond r/WallStreetBets hype.
Meme Stocks to Buy: Palantir Technologies (PLTR)
At less than $8 per share, this cybersecurity innovator should be on everyone’s watch list. Despite a difficult start to 2023, Palantir Technologies (NYSE:PLTR) is up more than 20% year-to-date. The company recently expanded its cloud partnership with Microsoft (NASDAQ:MSFT), securing a future that includes more defense contracts. That’s precisely what the company needs to succeed in the long term. Additionally, its subscription-based data analytics insight service Foundry has substantial private sector applications as the artificial intelligence (AI) boom continues.
That said, Palantir can also offer investors exposure to the blockchain technology market. It doesn’t operate in the blockchain space. However, as InvestorPlace contributor, Chris Markoch notes: “Palantir can use its platform to leverage the data from blockchain applications with its own expertise in artificial intelligence.” This means the technology has wide-ranging applications that span both the public and private sectors. As the market rebounds, Palantir is well-positioned to rise with it as many industries increase their reliance on AI and big data.
Advanced Micro Devices (AMD)
The AI boom has helped generate a surge in demand for semiconductors. For companies like Advanced Micro Devices (NASDAQ:AMD), this has meant many growth opportunities, sending AMD stock up more than 40% over the past six months. It may not fit the meme stock definition for much longer. Investor sentiment toward the company remains highly bullish, with AMD earning a strong buy consensus on TipRanks, where 19 Wall Street analysts maintain “buy” ratings. While the stock has attracted some bearish energy as well, the new AI gold rush is doing an excellent job helping it stage a company and climb back onto Wall Street’s radar.
Such positive Wall Street sentiment might cause some to suggest that AMD can’t be considered a meme stock. However, interest in the company has been surging across r/WallStreetBets and similar forums. ApeWisdom notes that “during the last 24H AMD was mentioned 47 times on WallstreetBets by a total of 39 different users.” The digital investing community is clearly excited, likely because they’ve finally found a stock that is down for the month but has plenty of room to run as economic conditions continue to shift in its favor.
Meme Stocks to Buy: SoFi Technologies (SOFI)
This fintech darling has performed well this year despite constant headwinds. SoFi Technologies (NASDAQ:SOFI) is a leader in the personal finance space, and it is about to report Q1 earnings on May 1. When it does, investors will finally learn how much the banking crisis has impacted the company. With that in mind, it’s no surprise that interest in SoFi would be surging across social media as investors gear up to assess the company’s stability. However, the stock’s performance indicates they don’t have much to worry about. SOFI demonstrated solid growth before the earnings report momentum kicked in.
SoFi is just controversial enough as a company to remain on the meme stock stage. It’s hard to argue with its growth potential, but the threat of political headwinds has compelled less risk-averse investors to keep their distance. However, as InvestorPlace senior investment analyst Luke Lango notes, the company is well-positioned to win the digital finance war and offer investors 25X gains within the decade. Its current price dip represents a valuable buying opportunity before SOFI stock embarks upon Lango’s predicted trajectory.
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 InvestorPlace.com Publishing Guidelines.
