3 Meme Stocks to Sell and Replace With Meme Coins


  • Evaluate speculation driven by outlooks and adjust your portfolio accordingly.
  • Rivian Automotive (RIVN): The shrinkage of the middle class is not good for bottom line of producing luxury EVs at a big loss.
  • Tupperware Brands (TUP): Founded in 1942, the storage container leader could exit the stock arena entirely.
  • Allogene Therapeutics (ALLO): Without a pipeline of revenue-generating drugs, this biotech bet may be on the way out.
meme stocks to sell - 3 Meme Stocks to Sell and Replace With Meme Coins

Source: shutterstock.com/ChrisStock82

Social media has largely overshadowed the investing fundamentals with pumpamentals, spotlighting meme stocks to sell. Just as Bitcoin is analog to blue-chip stocks, meme stocks have similarly become analog to altcoins. Both are driven by narratives fed by short-term valuation surges.

But, just as easily as they went up, meme stocks can go down. Pitting their float shorted against dwindling revenue figures and rapid cash depletion, which meme stocks should be ousted from your speculative portfolio?

Let’s take a look at these three meme stocks to sell as we delve into their current trajectories. Some wonder if they might be on the brink of a downturn, making them prime candidates for offloading from portfolios.

Rivian Automotive (RIVN)

Early production Rivian (RIVN) R1T at the Normal, IL production plant
Source: Frank Briend / Shutterstock.com

Since the meme stock mania started to deflate in November 2021, Rivian Automotive (NASDAQ:RIVN) is down 92%. At its present level of $10.10, the stock is just 0.9% away from its 52-week low point of $10.01 per share. Its float is presently shorted at 20.89%.

At times like this, investors wonder if this is a buy-the-dip opportunity? In Rivian Automotive’s case however, that would depend if it is a solid electric vehicle (EV) growth stock. In Q1 2023, Chief Operating Officer (COO) Frank Klein noted that the company’s target was production of 50,000 EVs by the end of the year.

So, RIVN exceeded that goal with 57,232 EVs for the full-year 2023, delivering 135% year-over-year (YOY) production increase. However, the outlook for full-year 2024 is now flat. Unbudging from the achieved 57,000 level, it’s significantly under the previously estimated 81,700 EVs, per Visible Alpha polling of eight analysts.

Further, this flatlining is exacerbated by Rivian Automotive’s continued losses per every vehicle manufactured. Although the company increased its YOY revenue by 167.43%, ending December 2023, the automaker suffered a $5.43 billion net loss. Sandwiched between a $6.7 billion loss in 2022 and $4.6 billion loss in 2021, RIVN’s cash burn with now-flatlined demand is not sustainable.

Tupperware Brands (TUP)

Pile of several and many Tupperware plastic products, Tupperware Corporation, (TUP) an American multinational company produces plastic food storage containers and bottles
Source: Tamer Adel Soliman / Shutterstock.com

Despite sharp valuation spikes in August 2022 and July 2023, Tupperware Brands (NASDAQ:TUP) continuously spirals downward, having lost 93% value since November 2021. At $1.20 per share, TUP is still 50% away from its 52-week low of $0.61.

That scenario is likely for multiple reasons. Although Tupperware is a long-standing household brand, its business model of direct sales is facing inexorable decline against e-commerce giants like Amazon (NASDAQ:AMZN).

Aggravating its business model is the dilution of branding, wherein the term “tupperware” became a class of products unrelated to the company itself. Although Tupperware Brands attempted to rectify its core business model by approaching Target and Amazon, sales haven’t improved. For full-year 2022, released in March 2023, Tupperware reported 18% YOY net sales decline

Most recently, on March 29th, the company submitted a delay for full-year 2023 earnings. Before the likely new low that exceeds the 52-week low, TUP shareholders should consider cutting their losses.

Allogene Therapeutics (ALLO)

Pipette adding fluid to one of several test tubes; biotech NVTA Stock
Source: motorolka / Shutterstock.com

Founded in 2017, Allogene Therapeutics (NASDAQ:ALLO) is up 9.4% year-to-date (YTD). At $3.96, the stock is presently 43% above its 52-week low price of $2.23 per share. This biotech stock represents an exposure to novel therapies for blood cancers and solid tumors.

Although the company holds a wide pipeline of potentially promising treatments based on CAR T cell technology, it lacks a wide portfolio of existing revenue-generating drugs. For the full-year 2023, Allogene reported a net loss of $327.3 million, or $2.09 per share. 

In the outlook for 2024, the company expects further decline in losses and depletion of cash and cash equivalents. That could be up to $190 million from the existing pile of $448.7 million. Given the highly experimental nature of its product lineup and regulatory approval hurdles, the company is likely to seek new funding before it runs out of cash in 2026.

Investors with low risk tolerance for so many unknowns should look to revise their ALLO holdings. At present $3.96, ALLO shares are under Nasdaq’s low estimate of $4.4 twelve months ahead based on 19 analyst inputs. However, if the bet pans out, ALLO stock could go up as high as $35 per share.

On the date of publication, Shane Neagle 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.

Shane Neagle is fascinated by the ways in which technology is poised to disrupt investing. He specializes in fundamental analysis and growth investing.

Article printed from InvestorPlace Media, https://investorplace.com/2024/04/3-meme-stocks-to-sell-and-replace-with-meme-coins/.

©2024 InvestorPlace Media, LLC