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Are meme stocks a good investment in 2024?

Are meme stocks a good investment in 2024?

In 2021, meme stocks sparked euphoria across social media and investor forums, and even though the frenzy subsided, these speculative assets remain a hot topic. 

Primarily attracting risk-inclined retail traders, meme stocks are volatile, growth-centric assets that tend to perform better in a low-rate environment. With the Federal Reserve’s planning rate cuts in the upcoming year, investors are expecting a more favorable setting for riskier stocks. 

Today, on December 15, Finbold spotlighted three noteworthy meme stocks currently making headlines, examining the potential they hold for investors in the coming year.

Beyond Meat (NASDAQ: BYND)

Following a months-long downturn, plant-based meat maker Beyond Meat finally offered investors something to rejoice in. 

Over the past month, the stock surged more than 41%, surging to a three-month high of above $10. 

BYND 1-month price chart. Source: Google

The resurgence came after investors welcomed news of layoffs and new cost cuts in the company’s Q3 earnings report. Additionally, the stock capitalized on the broader market gains amid easing macroeconomic pressures. 

While the company missed revenue expectations, it announced plans to cut the workforce by 19% and prioritize gross margin growth and cash generation. 

But despite the subsequent share price spike, there is still little evidence showing that Beyond Meat is disrupting the highly competitive food industry. In addition, the company remains unprofitable, and with such fundamentals, investors are better off staying on the sidelines for now. 

GameStop (NYSE: GME)

One of the highlights of the 2021 meme stock craze was the rise of GameStop (NYSE: GME). During that period, the stock experienced a meteoric rise, reaching an all-time high of around $483 following a so-called “short squeeze.”

But that was nearly three years ago. Although GME continues to make meme stock headlines, there’s not much to like about the retailer from an investing standpoint.

GME’s shares are up 30%, a rally driven ahead of the company’s recently released quarterly results as traders once again showed their appetite for high-risk bets. 

GME 1-month price chart. Source: Finbold

However, the financial report confirmed that GameStop still lacks fundamental positives, with Q3 revenue missing Wall Street’s estimates.

One of the handful of positives liked by investors was the company’s shift in its investment strategy. Notably, GameStop said it will begin investing in equities, rotating away from its previous strategy of buying government securities. 


In nearly every regard, 2023 has been a disappointing year for luxury electric vehicle (EV) maker Lucid (NASDAQ: LCID) and its investors. 

The company’s shares plunged more than 20% year-to-date on the back of poor production numbers and a significant cash burn. 

Following its Q3 report, the company reduced its vehicle production guidance for the second time in less than a month to around 10,000 units for 2023. It is the numbers behind financial headwinds that are giving investors headaches, with Lucid losing almost $340,000 for every EV it makes in 2023, according to Bloomberg Intelligence

As a result of these challenges, the Nasdaq exchange group announced it would omit LCID from the Nasdaq-100 index as part of its annual rebalancing. The stock took another hit earlier this week after its CFO Sherry House left the company to “pursue other opportunities.”

Despite these headwinds, Lucid surged over 17% over the past month. The bulk of gains came this week amid all-around strong sessions for US stocks driven by the Fed’s dovish pivot. 

LCID 1-month price chart. Source: LCID

The company recently introduced Gravity, its first electric SUV, adding to its existing lineup, which until then included the Lucid Air as the sole available EV.

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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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