Meme stocks were big wealth creators for retail investors during the euphoric rally of 2021. Price-action in some stocks in the recent past might indicate that the meme stock season is returning. GameStop (NYSE:GME) stock was trading at $10 in April. By the second week of May, GME stock had touched 52-week highs of $64.8. Similarly, Novavax (NASDAQ:NVAX) stock has skyrocketed by 265% in the last month.
Of course, these are selected instances of stock frenzy. I believe it’s likely to be more widespread in the coming quarters. An important point to note is that the last meme stock euphoria was when interest rates were low. Easy money translates into higher speculative activity. With potential rate cuts in the coming quarters, there is a strong reason to believe that speculative activity will surge.
This column discusses three meme stocks to buy that have millionaire-make potential.
Marathon Digital (MARA)
Marathon Digital (NASDAQ:MARA) is my first pick among meme stocks that can be millionaire-makers. MARA stock has surged by 115% in the last 12 months. However, considering the impending growth, a forward P/E of 38 looks attractive. I must add that valuations can go through the roof in a meme stock frenzy.
The first point to note is that Bitcoin (BTC-USD) has been in a zone of consolidation above $60,000. With potential rate cuts and rising cryptocurrency adoption, I am bullish on a significant upside from current levels. As one of the largest Bitcoin miners, Marathon Digital is well-positioned to benefit from this.
As of Q1 2024, Marathon reported an energized hash rate of 27.8EH/s, which was higher by 142% yearly. It’s worth noting that the company is targeting to increase capacity to 50EH/s by the end of the year. This is likely to translate into stellar revenue and EBITDA growth.
It’s worth adding that Marathon ended Q1 with a cash buffer of $1.6 billion. This provides ample flexibility for financing aggressive growth plans.
Plug Power (PLUG)
Plug Power (NASDAQ:PLUG) stock has been a participant in the meme stock euphoria of 2021. However, PLUG stock has subsequently been in a downtrend. The reasons include cash burn and doubts about the execution capability of ambitious plans.
With the meme frenzy on the cards, I expect a big rally for PLUG stock from deeply oversold levels. I would not be surprised if the stock delivers 5x or 10x returns in quick time.
Specific to the company, the biggest upside catalyst is the conditional commitment for an up to $1.66 billion loan guarantee from the Department of Energy. The funds will be utilized to construct and own up to six green hydrogen production facilities. The backing of the U.S. DoE will likely instill some confidence in investors.
Plug Power has also focused on international expansion. Recently, the company expanded cryogenic sales with multiple customer agreements in international markets. Plug Power also secured Korea’s first international PEM (proton exchange membrane) electrolyzer certification. These favorable business developments are likely to support a massive meme stock rally.
Tilray Brands (TLRY)
With Presidential elections due, it’s a good time to buy cannabis stocks. When President Biden was elected in 2021, cannabis stocks had skyrocketed. With an overwhelming majority of Americans in favor of the legalization of cannabis, it’s likely to be a topic of discussion during the election campaigns. This will trigger price action in some quality stocks.
Tilray Brands (NASDAQ:TLRY) stock has remained sideways in the last 12 months. I believe a big upside breakout is likely in the coming quarters. In recent news, Tilray has announced a $250 million at-the-market program. The proceeds will be used to fund potential acquisitions once cannabis is reclassified as a Schedule III drug in the United States.
It’s also worth noting that Tilray reported healthy revenue growth of 30% on a year-on-year basis for Q3 2024. This momentum has been supported by healthy growth in international cannabis revenue. Further, with acquisitions in 2023, Tilray has diversified and positioned itself as the fifth-largest craft beer brewer in the United States. With all these developments, there are strong reasons to believe TLRY stock will go ballistic.
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.
