Many of yesterday’s meme stocks to buy, once the darlings of speculative traders, now languish as forgotten relics at the bottom of portfolios, their potential for massive gains long since diminished. This popular sentiment — “It’s only a loss if you sell” — might not hold much comfort anymore.
Proving the truism less-than-true, many former top meme stocks like WeWork, Smile Direct Club and Bed Bath & Beyond have been delisted. A few holdouts remain, barely maintaining their status by hovering in penny stock territory and clinging to a shred of credibility.
However, not all is lost. Despite the Federal Reserve’s economic tightening over the past few years, some meme stocks are hovering on the edge of rebounding rapidly based on sector-specific tailwinds. That’s further spurred by whispers of “imminent” rate cuts.
Regardless, banking on such uncertain prospects — given the Fed’s “higher for longer” stance — is risky and complex. Instead, if you’re scouting for meme stocks to buy, prioritize those with a clear, viable path to profitability or at least robust fundamentals.
Tilray Brands (TLRY)
There’s finally some momentum among cannabis stocks as the U.S. Drug Enforcement Administration officially pivots its position toward rescheduling with plans to relabel the drug as Schedule III. Pot stocks surged, but among the crop, Tilray Brands (NASDAQ:TLRY) is the best (former?) meme stock to buy on the news. Shares popped nearly 40% on the news, though; since it’s priced within penny stock territory at less than $2.50 per share, there’s plenty of room to run.
Beyond the obvious bud-based benefits, Tilray’s unique position as the country’s 5th largest craft brewer further underscores its potential as a standalone stock, let alone its place on a list of meme stocks to buy. Tilray’s portfolio of craft breweries — and all of the production, marketing and distribution networks it entails — sets the company apart from its many undifferentiated competitors across two domains.
First, selling popular craft beers helps Tilray diversify revenue streams in the low-margin cannabis industry without spreading itself too thin or over-diversifying. Second, those distribution networks will be useful once cannabis legalization becomes more widespread. Management is already market-testing THC-infused drinks throughout Canada, so when full legalization spreads, the company will be able to rapidly deploy products nationally.
Bit Digital (BTBT)
Though Bitcoin (BTC-USD) prices are trending downward, don’t let that dissuade you from adding Bit Digital (NASDAQ:BTBT) to your list of meme stocks to buy. Like Tilray, Bit Digital is rapidly realigning some operational efforts to pivot away from pure-play crypto mining as the endeavor becomes increasingly costly and margins compress.
Bit Digital operates tens of thousands of mining units and has mined over 6,600 bitcoins, valued at over $430 million today. Of course, this figure pales compared to mega-miners like Riot Platforms (NASDAQ:RIOT), which mined a similar amount in 2023 alone. To bridge this gap, Bit Digital is diversifying its revenue streams by venturing into AI-centric infrastructure.
Under the banner of Bit Digital AI, the company is launching a new business line dedicated to providing specialized infrastructure to support generative artificial intelligence systems and processes on behalf of third-party clients. Essentially, Bit Digital is setting up an array of Nvidia (NASDAQ:NVDA) units within a high-end data center. This setup aims to provide smaller companies access to substantial artificial intelligence capabilities via multiple computing power access points.
This strategy indicates a potential future for digital crypto mining across the sector. With increasing regulations and rising costs, companies may leverage their extensive computing resources to address adjacent challenges. Bit Digital may be a meme stock, but it is also at the forefront of multiple emerging technologies and trends.
Palantir Technologies (PLTR)
At this point, I hesitate even to call Palantir Technologies (NYSE:PLTR) a meme stock, considering its profitability streak and apparently sales momentum. Still, shares of the ascendant meme stock have dipped recently alongside the wider market, though there isn’t a clear catalyst for the decline. The drop may stem from a cooling of sentiment following a strong earnings report that previously boosted the stock. This decrease doesn’t represent a significant downturn. Still, it has brought the stock to a level that might be a good buy before it potentially rises again following next week’s earnings report.
Historically, Palantir’s stock price has fluctuated within a narrow range before experiencing a surge, eventually stabilizing at a new, higher baseline. For a considerable time, this baseline was around $15, but after impressive earnings, it shot to $25 and now seems to be settling at about $20 – $22. If the upcoming May 6th earnings report aligns with previous patterns, this current dip might be an optimal time to invest in Palantir at a lower price, meme stock or not.
On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
