Since the Gamestop (NYSE:GME) short squeeze shook the investing world in 2021, investors have been focused on finding the next meme stock. It’s been a long, hard search with no clear end. Little-known companies have risen out of nowhere only to fall again just as quickly.
Stocks cast aside by Wall Street like GME have been catapulted to overnight success by the r/WallStreetBets crowd. But while these companies may see unprecedented gains, they often fall back down just as quickly. As investors have been reminded consistently, pure short squeeze hype on its own does not make for a profitable investment.
Most meme stocks are spurned by Wall Street because they are deemed unstable. For that reason, investors should be focused on identifying the most important meme stocks to sell before they go from bad to worse. Per Yahoo Finance:
“By any traditional analytical measures, meme stock names such as GameStop, Bed Bath & Beyond, and Blackberry are still wildly overvalued at current levels despite a rough 2022.”
The statistics back that up. Morning Brew reports that retail traders have suffered 30% losses on average throughout the year. The outlet also notes that according to JPMorgan (NYSE:JPM), their portfolios could be down as much as 38%.
It seems that the r/WallStreetBets army has been unable to rally their favorite stocks enough to turn a profit for the year. This isn’t surprising when we consider the macroeconomic trends that have defined the year. Uncertainty is still high and investors clearly opted against the risk that meme stocks pose. This isn’t likely to change, even as markets begin to rebound in 2023. Let’s take a look at the best meme stocks to sell to avoid further losses.
Meme Stocks to Sell
AMC Entertainment (AMC, APE)
Both stocks associated with AMC Entertainment (NYSE:AMC) should be on the short list of meme stocks to sell this year. It’s been a highly turbulent year for the struggling movie theater chain that can’t catch a break. AMC isn’t the worst-performing meme stock on this list but it may have seen the most negative headlines.
From lagging box office numbers to having its stock price allegedly manipulated by Sam Bankman-Fried, AMC has been fighting an uphill battle that it has proven it can’t win. Now the company is contending with rumors of possible bankruptcy. While they may not come to pass, most investors likely won’t stick around to find out. AMC has already given them more than enough reason to run the other way.
Things have been even worse for AMC’s preferred share dividend. AMC Preferred Equity Units (NYSE:APE) launched in August 2022, they were created to help the company alleviate some of its debt. Unfortunately, all APE has done is drag AMC down further.
APE fell below $1 per share recently and there’s nothing to indicate that it can reach it again. There have been rumors of a reverse stock split but even that won’t be enough to make a difference. AMC is an outdated company that can’t innovate as its business model is stuck in a previous era. It’s only a matter of time before both stocks go under.
Ast SpaceMobile (ASTS)
Even in the space race, not all stocks are winners. Companies like Virgin Galactic (NYSE:SPCE) have too much potential to be placed on a list of meme stocks to sell. But Ast SpaceMobile (NASDAQ:ASTS) has been in a race to the bottom for months, failing to gain any real momentum since its second-quarter earnings report. As the earnings report pushed ASTS stock up, meme stock momentum helped push it to a high for the year. But since then, all the stock has done is fall, indicating that it can’t stay elevated on its own. Even with its occasional surges, Ast SpaceMobile is still down 50% for the year.
Unlike AMC, ASTS hasn’t seen so many bad headlines this year. On the contrary, it’s enjoyed several positive catalysts, including its BlueWalker 3 reaching orbit. However, even as it has successfully launched satellites and benefited from a heightened focus on space travel, the stock hasn’t been able to demonstrate any sustainable growth.
Investors should also consider the short report issued by Kerrisdale Capital in September. The short seller speculated that Ast’s growth prospects are limited and raised the possibility of shareholder dilution. It’s easy to get excited about an innovative company that spans both telecommunications and space travel. But in the case of ASTS, investors should look elsewhere.
Bed Bath & Beyond (BBBY)
Like AMC, Bed Bath & Beyond (NASDAQ:BBBY) is truly a meme stock that’s fallen from grace. It delighted the digital investing community in August 2022 with an unpredictable surge. But just as quickly, BBBY came crashing back down to earth as investor Ryan Cohen cashed out. Since then, he’s been accused of market manipulation and the company is facing a class-action lawsuit. Those should be reason enough to offload BBBY stock for anyone still holding it. Down 80% for the year, shares aren’t likely to bounce back.
For anyone still not convinced that the stock is a loser, consider the significant headwinds facing the company. Bed Bath & Beyond has been pushed down by plenty of factors that don’t include r/WallStreetBets. A few examples include diminished consumer demand and supply chain constraints.
Things have been difficult for the retail sector in general. But while BBBY stock has been falling over the past six months, competitor Bath & Body Works (NYSE:BBWI) has been rising. As InvestorPlace assistant news writer Eddie Pan reports, the company’s tactic of issuing share dilutive orders hasn’t helped either. Every sign points to the overwhelming truth that BBBY stock is a lost cause.
Beyond Meat (BYND)
It’s hard to find a stock that more investors have soured on than Beyond Meat (NASDAQ:BYND). The company that helped usher in the plant-based meat era started the year as a breakout stock. But as the cost of its products has risen, consumers have been unwilling to pay for them.
Sliding sales were already causing problems for Beyond Meat before photos surfaced of a Pennsylvania-based factory with severe sanitation problems. When people are already reluctant to try a new type of food, mold and bacteria reports are the last thing the company behind it needs. It’s worth noting, however, that BYND stock has been trending downward all year, losing 80% of its value in the process. As Pan reports:
“Beyond Meat recently reported its Q3 earnings and they were unsavory to say the least. Revenue tallied in at $82.5 million, falling short of the analyst estimate of $98.1 million. Making matters worse, the company has reported an EPS loss since Q4 2020, most recently reporting a loss of $1.60. Analysts were expecting a loss of $1.14.”
The combination of unfavorable market conditions, questionable financials, and shifting public sentiment makes BYND a clear choice among meme stocks to sell. It’s barely even a meme stock anymore and even if it were, it wouldn’t be enough to make it a good investment.
Just about everything that can go wrong for Carvana (NYSE:CVNA) has happened during the past month. Several creditors signed a restructuring pact last week. In response, investment bank Wedbush Securities lowered its CVNA price target and raised the possibility of bankruptcy.
The forecast that share prices would fall to $1 sent investors running but things only got worse from there. As bankruptcy talk increased last week, trading was halted for CVNA stock, leading to more volatility. Its performance earned it the title of Worst Company of the Year from Yahoo Finance.
Since CVNA stock is down 98% for the year, it’s easy to see why. Shares are likely to pass the 100% decline mark before the end of the year, even if it sees an occasional rally. The company has done nothing but give investors ample reason to bet against it. Insiders who still hold it are deep in the red with no path forward.
Carvana may be high on the radar of plenty of retail traders as the negative headlines pile up. However, it remains one of the worst-performing stocks of the year with a strong possibility of falling to $1 per share. Even a meme stock push can’t save a company this far past the point of redemption.
It may seem odd to advocate for selling an AI stock when the market stands on the cusp of an AI boom. But not all stocks are created equal and C3 AI (NYSE:AI) hasn’t given investors much cause for optimism lately. AI stock has been trending on social media forums recently as the recent success of ChatGPT has cast a new light on chatbots.
However, while there are certainly stocks to buy to benefit from this new boom, C3.ai is too risky to bet on. For all the attention it has received from the r/WallStreetBets crowd, the stock remains highly volatile and the company hasn’t reported anything to indicate that a turnaround is in sight.
In September 2022, AI stock plunged as the company reduced its revenue outlook and lowered its sales guidance. C3.ai also admitted it had been facing economic pressures that don’t appear to have subsided. Shares fell 20% in response to the news and since then, they have only continued trending downward. Investors will likely be pulled toward other AI stocks with more stability. Given what we’ve seen from the stock in recent months, that is a wise decision. A crowded marketplace and a checkered history don’t make for favorable market conditions.
No meme stock discussion would be complete without the company that started it all. Since Gamestop is poised to finish off this year deep in the red, it is fitting to rank it among meme stocks to sell. The video game retailer hasn’t fallen as much as some of its peers in 2022 but it has been highly volatile.
While its partnership with FTX sent shares up in September, that alliance has since come back to haunt Gamestop. Activist investor Carl Ichan has famously bet against GME, beginning his short position at the height of its 2021 rise. Given how far the stock has fallen, it’s safe to say it has paid off. InvestorPlace contributor David Moadel supported this course of action, advising investors to be weary of Gamestop’s crypto and non-fungible token (NFT) dealings.
Gamestop recently announced a new round of layoffs impacting its cryptocurrency engineers. Unfortunately, reducing its crypto division now will likely be too little too late. The company hasn’t done much innovating lately and needs to demonstrate value in its meme stock status. InvestorPlace markets analyst Thomas Yeung recently speculated that Gamestop could be saved if Elon Musk were to buy it. While the prospect is certainly intriguing, Musk clearly has his hands full with Twitter right now as Tesla’s (NASDAQ:TSLA) stock continues to fall. Gamestop investors shouldn’t rely on him or anyone else to push their stock back up.
It’s been a difficult year for many Chinese stocks. While it may not be among the best known, iQIYI (NASDAQ:IQ) is no exception. The video platform is based in Beijing and seems to boast a strong following. Unfortunately, it also boasts questionable financials and credibility that is suspect at best.
In May 2022, the Securities and Exchange Commission (SEC) released a list of Chinese stocks that faced the possibility of being delisted from U.S. exchanges. Though iQIYI didn’t get the ax, it still made the list. For China-based companies, particularly those with less stability, the threat of delisting is sometimes ongoing.
InvestorPlace contributor Josh Enomoto has named IQ as a stock that investors should avoid. While this is partially due to political concerns regarding president Xi Jinping’s consolidation of power, it has more to do with the company’s shaky financial status. He notes that Gurufocus has labeled it a potential value trap. In his words:
“Structurally, the company has a weak balance sheet, with its negative Altman Z-Score reflecting a distressed enterprise. Also, IQ represents poor quality based on its hugely negative return on equity.”
While IQ stock has been rising recently, there is still too much risk to rate it as a buy. Even on its best day, it never came close to the popularity of some meme stocks on this list. That makes it unlikely to rally again, even temporarily.
Koss Corporation (KOSS)
This headphone manufacturer is one of the original meme stocks that surged in early 2021. Unfortunately, that also means that it has fallen alongside its peers, suffering significant losses since then. Often lumped into the same category as Gamestop and AMC, Koss (NASDAQ:KOSS) was also among the losers when Ryan Cohen tanked Bed Bath and Beyond in August 2022, leading to the stock’s iconic crash. When he did so, it pushed down many other prominent meme stocks, KOSS among them.
Ever since it fell in 2021, Koss has failed to regain any serious momentum. When it has spiked, it has typically been on short squeeze speculation, never leading to any actual growth. In July 2022, KOSS spiked on the news that it had settled its patent infringement lawsuit with Apple (NASDAQ:AAPL).
But since then, it has only fallen and has not reported any positive catalysts since. Koss is a clear case of a forgotten meme stock that never offered investors any actual value. Now that the traders who made it famous have turned their attention elsewhere, there is no reason to suspect that KOSS will demonstrate any actual growth in the future.
Marathon Digital (MARA)
The extreme volatility in crypto markets has created a difficult economic landscape for stocks in the space. Marathon Digital (NASDAQ:MARA) is a public blockchain firm with a focus on crypto mining. Like most companies in the crypto space, it entered 2022 at a much higher price
. Experts saw it as a stock with significant growth potential. But MARA has spent most of the year declining, falling well before the FTX collapse sent crypto markets into turmoil. Shares are down more than 86% for the year and are likely to fall even more before as crypto prices are a long way from stabilizing.
It’s easy to see why meme stock traders would be fascinated with crypto stocks. With crypto markets in free fall, the companies that mine and trade them are at the mercy of an unfriendly market and Wall Street will be quick to sour on them.
But as Enomoto notes, Marathon Digital isn’t only dependent on crypto prices but on crypto sentiment. A lack of trust from the general public has been one of crypto’s biggest problems since the rise of Bitcoin (BTC-USD). Now that the FTX scandal has significantly undermined it, people are less likely to trust cryptos. This means a very bleak future for companies like Marathon Digital.
Mullen Automotive (MULN)
As much as the electric vehicle (EV) race picked up in 2022, some companies have spent it in a race to the bottom. There is no better example of this than Mullen Automotive (NASDAQ:MULN). This company has fascinated investors since it shot to meme stock prominence earlier this year but for all its popularity, has not been able to demonstrate any real growth.
Mullen has seen plenty of positive headlines throughout 2022 as it maneuvers to establish itself among EV players. But so far, nothing has helped it pull into the green and stay there. The company recently announced plans to enter Europe’s EV market with a shipment of its I-GO EVs but it is still down almost 30% for the month.
As a popular meme stock, Mullen is constantly subject to rumors of a short squeeze. Despite speculation that one may be coming, data points to the contrary. According to ApeWisdom, mentions of MULN have been falling across social media lately. It seems that these rumors are mostly superficial hype and should not be relied upon. Mullen has proven that high investor interest and positive catalysts reports can’t boost a stock with Mullen’s history. The stock is down 96% for the year and will likely pass the 100% mark before 2022.
Newegg Commerce (NEGG)
Many of the defining trends of 2022 have pushed Newegg Commerce (NASDAQ:NEGG) down. The digital retailer deals primarily in electronic equipment. While the company benefitted greatly from the 2020 pandemic lockdowns, it has since plunged to penny stock levels.
Part of this is due to the fact that it is owned by Chinese conglomerate Liaison Interactive. The country’s zero-Covid measures have made many investors wary of stocks with ties to China. Additionally, Newegg sells crypto mining equipment, a product that isn’t in demand right now and won’t be until markets stabilize.
In July 2022, InvestorPlace contributor Faizan Farooque attributed much of NEGG’s success to meme stock momentum. While he acknowledged that the company had potential, he saw it as overvalued and predicted a turnaround would not happen.
As the year ends, his prediction has proven astute as geopolitical turbulence continues to cause problems for Chinese stocks across sectors. It’s clear that Newegg doesn’t have the power to rise about the macroeconomic headwinds, as its recent growth has been proven by superficial hype. Additionally, its presence on meme stock forums has been falling lately, indicating that there is no growth in the stock’s future.
Peloton Interactive (PTON)
It’s impossible to discuss pandemic-era winners without Peloton (NASDAQ:PTON). The at-home fitness innovator rocked to fame as Americans purchased their trendy bikes and treadmills, disregarding their hefty price tags.
While this helped PTON stock surge to impressive heights, it also proved dangerous for the company. When lockdowns lifted, business dropped off dramatically as Peloton realized it had overestimated America’s willingness to pay $1,495 for an exercise bike. The company failed to adapt to a post-pandemic world and shares continued to fall. As Eddie Pan reports:
“That’s evidenced by Peloton’s fiscal Q1 revenue of $616.5 million, down 23% YOY and falling well short of the analyst estimate of $650.1 million. Additionally, the at-home fitness company reported an EPS loss of $1.20 versus the estimate for a loss of 64 cents.”
It’s easy to see why a beaten-down stock like PTON would be a prime target for the r/WallStreetBets crowd. But it’s also easy to see why investors have long since disregarded the stock and have no faith in it. As InvestorPlace contributor Larry Ramer notes, the company is facing the threat of increasing competition and unless it makes a dramatic change, it could be heading toward bankruptcy. If that happens, meme stock momentum won’t be able to save it.
Investors shouldn’t need much convincing to cash out of Revlon (OTCMKTS:REVRQ). This cosmetics retailer had started plans to declare bankruptcy when meme stock traders decided to save it. While they successfully pushed it to Wall Street’s radar, it didn’t last long.
Like all short squeeze plays, REV came crashing back down to earth and since then, has reminded investors why they cast it aside in the first place. In October 2022, the company was delisted from the New York Stock Exchange and began trading over the counter. When this happened, Ramer predicted that the shares would “eventually become worthless.”
As the year winds to a close, it’s clear that Ramer’s forecast is correct. The new REVRQ stock is down more than 96% for the year with a high likelihood of falling even more before 2023. Enomoto has also categorized it as a short-squeeze stock that investors should disregard. But even in that context, he acknowledged that the stock had limited short interest.
When we combine that with Revlon’s highly questionable financials, it’s clear that this is absolutely a stock to avoid. Meme stock investors helped generate some superficial gains but Revlon’s time in the sun has long since passed. The stock is likely to continue falling even more as interest in it does.
Robinhood Markets (HOOD)
It’s no surprise that the platform that introduced many market amateurs to trading would become a meme stock itself. Robinhood rocketed to fame when its commission-free trading attracted many aspiring investors. But when the Gamestop short squeeze of 2021 changed everything, Robinhood (NASDAQ:HOOD) found itself in hot water after being accused of protecting hedge funds. Since then, HOOD stock has remained in focus throughout digital investing communities, though not always for positive reasons.
Robinhood is also a victim of the FTX meltdown. The company generated significant revenue through crypto trades. Worse than that, though, is the fact that Bankman-Fried recently disclosed a stake in the company of more than 7%. As Eddie Pan reports:
“Following the collapse of FTX, Bloomberg reported that Bankman-Fried’s HOOD stake was held through Alameda Research, the hedge fund closely tied to FTX, and may have been used for collateral on loans. As a result, it’s likely that Alameda has or will liquidate the stake, putting pressure on Robinhood.”
On top of that, Robinhood’s recent attempts to innovate don’t inspire much confidence. It recently introduced retirement accounts, exactly the type of feature that the traders who catapulted it to fame aren’t likely to care about. The way it looks from here, Robinhood’s days have been numbered for some time. The crypto contagion may just speed up the process.
Roku (NASDAQ:ROKU) is another example of a stock that seems to be in a perpetual state of bad luck. Since surging to almost $400 per share during the 2020 pandemic lockdowns, Roku has failed to adapt and stay current. Now, like fellow pandemic winner Peloton, it is paying the price and combating aggressive macroeconomic trends.
ROKU stock plunged in November 2022 after the company issued a grave warning regarding falling advertising demand. While Ramer speculated that it could also hurt some of Roku’s competitors, such as Netflix (NASDAQ:NFLX), the former has clearly felt the sting on a much greater scale. While ROKU stock is down 30% for the past six months, NFLX is up 93% for the same period.
Like many tech companies, Roku recently announced layoffs. That doesn’t instantly make it a sell but as Louis Navellier states, its declining financials absolutely do. As InvestorPlace contributor Bret Kenwell notes, the stock’s performance throughout the year should have served as a bellwether for the approaching bear market. With declining revenue and grim forecasts casting a grim shadow that can be expected to last well into 2023, it’s clear that ROKU is a stock to sell before it falls further.
It seems odd that an industry leader with high-growth status would be considered a meme stock. But thanks to CEO Elon Musk, Tesla is currently one of the most popular stocks across digital investment forums. That said, it’s also thanks to Musk that shares of his EV company have been tanking since he turned his attention to Twitter.
TSLA stock has fallen 16% over the past month but more troubling is the fact that is down 50% for the year and looks primed to fall even further. This scenario is an example in line with what multiple experts predicted would happen if Musk assumed control of the social media platform.
At the beginning of 2022, Tesla looked poised to conquer the world. Now its future remains highly questionable as Musk seems more focused on Twitter sparing matches than on helping his first company grow.
As InvestorPlace contributor Thomas Niel reports, hedge funds have begun avoiding Tesla and selling their shares, a list that includes Renaissance Technologies, Citadel Advisors and Millennium Management. Meme stock investors like to bet against hedge funds but they don’t have the power to combat that type of negative momentum, especially when Musk has made it clear he has other priorities.
Tilray Brands (TLRY)
Even in a thriving market, some companies have proven themselves unable to grow. Tilray Brands (NASDAQ:TLRY) has been in a race to the bottom since 2018. The fact that the company reached $148 per share that year but now trades at less than $3.50 illustrates what a fall from grace the stock has suffered. Tilray peaked in popularity as the cannabis boom expanded across Canada.
But even as the United States has adopted an increasingly pro-cannabis mentality, TLRY has failed to gain serious momentum. Despite rising over the past six months, it is still down more than 53% for the year and looks primed to fall even further.
InvestorPlace contributor Muslim Farooque recently named Tilray as one of the worst stocks to own in a bear market, citing questionable fundamentals. As he notes, all the positive investor sentiment hasn’t led to actual growth.
Rather, it has done the opposite, with TLRY trending ever downward since its 2018 peak. Farooque also highlights the fact that Tilray’s exposure to U.S. markets is limited, leading to more concern for the company’s future growth. This point is well taken, as other cannabis producers with a bigger presence in the U.S. are likely to leave Tilray far behind.
Trxade Health (MEDS)
Like many stocks on this list of meme stocks to sell, this little-known company’s only recent growth has been driven by short interest from retail traders. Trxade Health‘s (NASDAQ:MEDS) most recent catalyst happened in July 2021 when its subsidiary Bonum Health inked a deal with Southeastern Grocers.
Unfortunately, that didn’t keep MEDS stock in the green for long and since then, it has been on a gradual downward trajectory. Despite starting the year at over $2.60 per share, Trxade is deep into the red with no clear way out, currently trading at the per share price of $0.51.
The meme stock’s poor performance is not surprising when we consider the company’s financials. As Enomoto reports, Gurufocus has flagged it as a possible value trap. The platform also rates the company as having poor financial strength, noting its considerable debt. More troubling, though, is the fact that its Altman-Z score places it in the distressed zone with the possibility of Trxade declaring bankruptcy within a two-year period. This meme stock’s best days are long behind it and investors shouldn’t wait around for a rebound that won’t come.
Vinco Ventures (BBIG)
In just the past week, Vinco Ventures (NASDAQ:BBIG) has been placed on multiple lists of penny stocks to sell before they die. However, the company only made it to Wall Street’s radar because of its meme stock status, earning it a place on this list as well. The reasons that investors should either offload BBIG stock now or avoid it entirely are numerous, starting with its questionable financials and ending with the constant onslaught of negative headlines that always seem to follow it. But overall, most of the stock’s problems can be chalked up to one recurring theme; volatility. BBIG’s turbulence should worry any investors.
As InvestorPlace reports, explaining the holding company’s mission isn’t easy but that hasn’t stopped the r/WallStreetBets crowd from developing a fascination with the stock since its trading debut. But no amount of attention from retail traders has helped Vinco demonstrate any real momentum. Any time the stock has risen, it has been just as quick to fall again. Recently, the company has been plagued by management problems that threaten to scare off even more investors. Every sign and headline suggests that BBIG stock is one to avoid.
Walt Disney (DIS)
Retail interest in this entertainment giant has been rising recently. This may be partially due to the new ad-supported tier that Walt Disney (NYSE:DIS) just rolled out for Disney+. But the underlying truth is that the company known for creating the “happiest place on earth” hasn’t done much to make its investors smile lately.
Shares rose in August 2022 but since then, they’ve fallen enough to pull DIS stock into the red for the past six months. Despite this surge, the stock is down 37% for the year and looks primed to keep falling. With a global recession looming, it’s possible that while Disney+ may see a slight bump, people will likely cut back on pricy vacations, thereby hurting companies like Disney.
Disney’s financials don’t look great either. Enomoto describes them as a “risky proposition against traditional valuation metrics” citing data from Gurufocus. Elaborating further, he states:
“Currently, the market prices DIS at 53.7-times trailing earnings and 22.3-times forward earnings. Both represent terrible stats, ranking worse than at least 74% of the competition.”
While Enomoto sees conservative investors turning their backs on Disney, all investors may turn their backs if the current economic headwinds continue to persist. The meme stock attention is also likely to die down as retail traders turn their attention toward stocks more in their typical wheelhouse.
Unlike Disney, WeWork (NYSE:WE) is exactly the type of company that would be embraced by the meme stock community. The co-working space innovator has been struggling since its first attempt to go public led to a cascade that ultimately forced Adam Neumann out of the CEO position. While it ultimately managed to start trading, it peaked at $13 per share.
Now the stock trades at less than $2, down more than 80% from its best day. With its history and failure to trade successfully, it’s easy to see why Wall Street would have been quick to write it off. However, like the other companies on this list, meme stock momentum hasn’t made WeWork a good investment.
This is a particularly bad time to be betting on a company like WeWork. The real estate market is in turmoil and not likely to stabilize any time too soon. WeWork has responded with news of a tempered forecast and a plan to close 40 locations it describes as “underperforming.” As Eddie Pan reports, the company’s Q3 revenue rose for the year but still failed to meet Wall Street expectations. This is a bad time to be buying real estate stocks but an especially bad time to be doubling down on WeWork, a company that isn’t coming back.
Wheels Up Experience (UP)
This company has not done a good job delivering on what its trading symbol promises. Wheels Up Experience (NYSE:UP) deals in a niche area of aviation, specifically on-demand private jets. Its business model is an interesting one but not one designed to withstand a global recession. Consumers are likely to be cutting back on unnecessary luxury items.
It’s hard to think of something that better fits that description than a private plane that can be at your disposal very quickly. Granted, Wheels Up does cater to an affluent clientele but even its typical patrons will likely be prioritizing cost-cutting if the economy continues lurching toward a recession.
While UP stock has had a good week, it remains firmly in the red for the metrics that matter. Shares are down more than 50% for the past six months and almost 73% for the year. Despite the stock’s recent pop, nothing suggests that this growth will continue. Airline ticket prices may be rising but most Americans still can’t afford to charter a private plane. Macroeconomic conditions are heavily stacked against this luxury stock and meme stock momentum won’t be able to save it.
This struggling penny stock has been flying under the radar for months as it fails to gain momentum. Another name largely forgotten only to be resurrected by the contrarian investor crowd, 23andMe (NASDAQ:ME) hasn’t been able to garner any real growth.
In August 2022, it plunged as CFO Steven Schoch stepped down from his position of CFO. The fact that the stock reacted so poorly to the news should have called attention to the company’s instability. Shares would rise enough to pull the stock into the green briefly but not enough to keep it there. As of this writing, shares are down 60% for the year with no signs of improvement.
23andMe should have spent the year rising along with companies in the biotech space. But aside from its August rally, the company has failed to demonstrate growth, indicating that even in positive market conditions, it has little hope of rising.
It doesn’t help that CEO Anne Wojcicki has acknowledged that the U.S. is lagging behind China and the U.K. in the area of genetic testing progress. ME stock has been described as “undervalued” with speculation that its growth hasn’t been driven by meme stock hype. If its overall performance for the year is any indication, though, neither assessment holds up.
— Samuel O’Brient
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Source: Investor Place