You can love them or hate them, but you can’t ignore meme stocks. This seems appropriate when talking about meme stocks after the euphoria of 2021. The lovers of strong fundamentals-based investing hate to see speculative meme stocks skyrocketing. There are others who are entirely focused on these speculative bats to make money.
I would consider the middle-path. That would be remaining overweight on blue-chip stocks and quality growth stocks. However, 10% of portfolio exposure to penny and meme stocks can be rewarding. The reason is that if these stocks fire, returns can be multi-fold in quick time. It’s therefore a good source of boosting overall portfolio returns.
As we come close to the end of another eventful year for the markets, there are meme stocks to buy to make the holiday season exciting. Be it a rally from oversold levels or driven by few positive business catalysts, these meme stocks can double or triple in the next few months.
Let’s discuss the reasons to be bullish on these stocks.
Marathon Digital (MARA)
All Bitcoin (BTC-USD) lovers would be interested in buying Marathon Digital (NASDAQ:MARA). The Bitcoin miner looks attractively valued and with a short interest of 24%, I expect a massive short-squeeze rally. This scenario is likely as Bitcoin is trending higher and it would imply strong numbers for Marathon in the coming quarters.
It’s worth noting that for Q3 2023, Marathon mined 3,490 Bitcoin, which was higher by 467% on a year-on-year basis. This was on the back of a 403% jump in energized hash rate capacity to 19.1EH/s. The company has already boosted installed hash rate to 23.1EH/s. Therefore, robust revenue growth is likely to sustain.
I must add that Marathon has guided for hash rate of 26EH/s by the end of the year. Further, the Company is targeting 30% growth in 2024. If this aggressive expansion is associated with Bitcoin trading at new highs, MARA stock can easily double or triple from current levels.
Lucid Group (LCID)
Lucid Group (NASDAQ:LCID) stock has plunged by 62% in the last 12 months. The deep correction has been on the back of weak production numbers coupled with significant cash burn. However, even after discounting these factors, LCID stock looks oversold. I expect a breakout rally, which would be a good trading opportunity. It’s worth noting that a short-squeeze rally seems likely with short interest at 27% of the free-float.
It’s important to mention here that Lucid will continue to burn cash possibly through 2027. If investors are looking for exposure to the electric vehicle industry, I see Tesla (NASDAQ:TSLA) and Li Auto (NASDAQ:LI) as quality names.
In terms of business developments, the company recently introduced Lucid Gravity with an expected range of 440 miles. The SUV is due for commercial launch towards the end of next year. It remains to be seen if Gravity can accelerate deliveries growth in 2025 and beyond.
Tilray Brands (TLRY)
Tilray Brands (NASDAQ:TLRY) is another oversold meme stock that’s likely to bounce back strongly. I would not be surprised if TLRY stock doubles in the next few quarters.
On the business front as well, there are several positives. First, Tilray has established itself as the fifth largest craft beer brewer in the United States. In the coming quarters, the beer and beverage business will support growth.
It’s also worth noting that for Q1 2024, Tilray reported international cannabis revenue growth of 37% on a year-on-year basis. This growth was primarily driven by “emerging international medical markets.” With presence in medicinal and recreational cannabis business, Tilray is well positioned to benefit.
Another positive is that Tilray expects to generate positive adjusted free cash flow for financial year 2024. As FCF accelerates in the coming years, financial flexibility to invest will increase. With these positives, TLRY stock looks attractive for short-term gains.
On the date of publication, Faisal Humayun 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.