Finding the best meme stocks to buy can be a challenge. After all, meme stocks are volatile by nature.
Other than tracking meme stocks online, speculators cannot predict when they will rise. These meme stocks to buy have all been in trouble, but it looks like they may recover in the future.
Remember that if the market weakens, some stocks may be dumped out of fear rather than because they have poor fundamentals or are overvalued.
One of the things that separates a real “meme stock” from a stock that just behaves like a stock is cash burn. Companies that continue to raise money by diluting their investors should be avoided.
||Invesco QQQ Trust
||iShares 20+ Year Treasury Bond ETF
Advanced Microdevices (AMD)
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Advanced micro-devices (NASDAQ:AMD) is one of the first meme stocks that investors believed in. Before the incredible turnaround, led by Chief Executive Officer Lisa Su, AMD stocks traded in the $2 range.
The company has saddled its balance with debt. It failed to run its chip business with products that outperformed the competition.
Patient investors who waited for the “AMD rocket ship” to explode earned up to 30 times their returns. The stock traded to $164.46 in the past year.
It is in a downward trend along with the semiconductor industry. On August 29, the company announced the launch of the Ryzen 7000 series desktop processors. The Zen 4 architecture provides customers with up to 16 cores and 32 threads. The company’s supplier produces the chip on the 5nm process node.
Smart investors don’t expect AMD 7000 computer chips to sell out. If proven otherwise, AMD will be one of the meme stocks to buy for the long haul.
After the announcement, the company earns back the title of fastest core in gaming. Customers who have delayed their purchase are ordering the latest AMD product. This would help AMD shares rise.
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Neither analysts nor markets expected FedEx (NYSE:FDX) would announce poor results for the first quarter in advance.
FDX shares lost more than 20% on September 16, 2022, when it also withdrew its guidance.
FedEx’s surprising revelation should encourage meme creators to promote the stock’s low price at these levels. In its preliminary report, FedEx said revenue in fiscal year 2023 was $23.2 billion.
This closely matches last year’s $22.0 billion. Unfortunately, operating income will fall from $1.4 billion last year to $1.19 billion. Earnings per share of $3.33 is lower than last year’s earnings per share of $4.09.
FedEx expects a revenue shortfall of about $500 million. FedEx Express is experiencing macroeconomic weakness in Asia. China’s zero Covid policy and a drought disrupted production. In Europe, high energy prices have a negative impact on demand. This, in turn, weakened FedEx’s parcel delivery volumes, making it one of the meme stocks to buy on weakness.
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GameStop (NYSE:GME) has loyal shareholders who will sell at any price. The company’s appalling quarterly report did not deter the bulls.
This suggests that GME stocks will outperform the index as the stock market threatens to crash.
In the second quarter, the used games and consoles retailer reported net sales of $1.136 billion. This is down from $1.183 billion last year. While selling, general and administrative expenses fell to $387.5 million, down 14.3% sequentially, it lost 35 cents per share (non-GAAP).
Chances are, memes will circulate his digital assets through his new FTX partnership. On September 7, 2022, it announced it would introduce more GameStop customers to the FTX community and its digital asset marketplaces.
FTX and GameStop offered few details about the new partnership. Once the mystery is revealed, the markets will re-evaluate GameStop’s prospects in the cryptocurrency exchange space. Still and as always, GME is one of the original meme stocks to buy.
Nvidia (NASDAQ:NVDA) is a good candidate to become the next meme sensation. On September 16, 2022, the media reported that EVGA, a channel partner, would exit the graphics card market.
EVGA shared its pain of selling Nvidia cards. The channel partner said Nvidia did not offer any pre-launch information about its new products.
Fortunately, the markets did not share EVGA’s view that Nvidia did not appreciate its channel partners. On September 19, 2022, NVDA’s share rose 1.39%. Still, on launch day, partners had to learn more about pricing and product information.
EVGA may have exited the market because it operated at a higher cost than other suppliers. It didn’t want to break even from profit to losses from here.
Nvidia’s upcoming RTX 4000 series is a crucial turning point for the gaming company. Nvidia could become a meme stock if this powerful graphics card price appeals to the retail customer.
Nvidia needs this launch to convince customers not to buy the current-generation GPU. After crypto mining crashed, the supply of used cards flooded the market. Lower prices for used cards are pushing Nvidia’s profits.
Nvidia could demand a premium price from its gaming fans. This is still bullish for the stock as it boosts profit margins. The company is willing to bet that customers will prefer the upcoming high-performance RTX 4000 over the cheaper RTX 3000 cards.
Invesco QQQ Trust (QQQ)
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Invesco QQQ Trust (NASDAQ:QQQ) tracks the Nasdaq index. Technology-conscious investors would, of course, bet on a rise in QQQ stocks.
The world’s largest companies like Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) account for over 20% of this ETF.
The tech sector in general could fall if the market crashes. However, Apple recently refreshed its iPhone and Apple Watch lineup. Meme investors can bet Apple fans can’t live happily without upgrading. Inflation will hurt the disposable income of the average consumer. But if Apple customers have above-average incomes, they can afford to upgrade.
Microsoft turned from selling software to annual subscriptions. No company employee or student can take advantage of productivity without Office 365. Since subscription revenue growth will not slow down, investors can hold MSFT shares through the QQQ ETF holding company.
Eventually, the market decline will end. The tech sector will be the first to recover. Companies are agile. They will grow fastest as business customers increase their spending on software and computer hardware.
iShares 20+ Year Treasury Bond ETF (TLT)
The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) is the last asset class to become a meme. Still, the 30-year bond is one of the most important assets to keep an eye on.
The more the yield on this bond rises, the more likely stocks will crash.
TLT stocks are a suitable meme because the price of the 30-year bond needs to stop falling. Ultimately, investors will bet that returns will peak. They will build up government-backed debt.
The US government’s aggressive interest rate policy increases the attractiveness of debt and US currencies. US assets are the most attractive compared to those of any other country.
There is a good chance that the relatively optimistic view of US debt will not change. The US dollar could remain strong in uncertain times.
Fearful investors will park their money in this currency. In addition, the Federal Reserve will steadily raise interest rates in the coming months. When rates eventually peak, this will help TLT break out of the downtrend.
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Tesla (NASDAQ:TSLA) faces minimal competition from emerging electric vehicle companies.
The company built Gigafactories all over the world. It secured delivery deals to secure the best prices. Companies like Lucide Group (NASDAQ:LCID) and Fisker (NYSE:FSR) are very late entering the market.
Tesla’s early foray into EVs cemented its brand name. The company has a wide enough variety of models to attract all segments of the market. Model 3 focuses on the low and mid range. Model Y is an SUV EV that appeals to the middle class. Model X and Model S are high-end models available to those who can afford them.
CEO Elon Musk’s offer for Twitter (NYSE:TWTR) assures that he will remain relevant in the news. The more attention he gets, the more appealing the Tesla memes.
Europe’s economic problems could slow Tesla’s growth. The mayor of Grünheide postponed a vote to expand the Gigafactory in Germany.
At the date of publication, Chris Lau had no (direct or indirect) positions in the securities referred to in this article. The views expressed in this article are those of the author, subject to InvestorPlace.com’s publishing guidelines.