Some might bristle at the notion of meme stocks to sell, fearing an overreaction. Recent performances by a handful of meme stocks might even hint at a mini-renaissance.

Meme stocks, in line with the burgeoning artificial intelligence trend, have been lucrative playgrounds for speculators.

However, all that glitters isn’t gold in the glitzy world of investing. These flashy, over-hyped meme stocks to sell often act as smoke screens, masking the genuine risks of capital markets.

Trading at skyrocketing prices, detached from their fundamentals. Many such risky meme stocks had a reality check last year, with their frothy valuations deflating to more reasonable levels. Yet, remnants of the meme stock bubble persist, with several still trading at bloated valuations.

So, let’s delve into the meme stocks to sell now, empowering you to construct a more balanced and resilient portfolio.

Mullen Automotive (MULN)

Mullen Automotive (NASDAQ:MULN) recently announced a halt on investor financing for the rest of 2023.

However, the pause is unlikely to bolster its flagging stock, currently trading at a meager dime. While Mullen is broadcasting its apparent fiscal strength, the proof is in its plummeting share price, which has effectively tumbled from $3.25 to a mere 11 cents this year.

This pre-revenue firm has more than tripled operational loss year-on-year for the first half ending March 31, casting a shadow on its prospects.

The firm’s net losses are still hovering around a staggering $500 million. The one glimmer of hope lies in the promise of recording revenue in the second quarter after selling 22 EV cargo vans.

However, an average price tag of $14,000 per vehicle beckons the question of its long-term sustainability and makes it one of the meme stocks to sell while you can.

Lordstown Motors (RIDE)

Lordstown Motors (NASDAQ:RIDE) recently pulled off a desperate maneuver with a 1-for-15 reverse stock split.

Though theoretically, this move would magnify the value of remaining shares, the reality for Lordstown paints a less optimistic picture. Its financials reveal a grim story, with a meager $194,000 in revenue against a massive loss exceeding $30 million in its latest quarter.

Lordstown barely got off the starting line, and with sales of just a handful of pickups, it sought Chapter 11 bankruptcy protection last month.

With plans to sell off assets, including its Endurance pickup truck’s technology and intellectual property, it’s clear that Lordstown’s ride is ending. As the firm is slated for delisting from the Nasdaq exchange on July 7, it’s best to discard the stock.

AMC Entertainment (AMC)

AMC Entertainment (NYSE:AMC) finds itself in a precarious position, with the cinema business facing an uphill battle.

The myriad viewing options available today have eroded AMC’s business prospects. Hence, the company now grapples with declining patronage, even as it clings to its status as a high-risk meme stock.

With a colossal debt burden exceeding $4.8 billion, AMC’s path is fraught with challenges. AMC’s first-quarter sales sat at $954 million, a dismal 21% behind its pre-pandemic glory days.

The plot thickens with streaming services gaining a major foothold in the entertainment sphere and consumer behaviors morphing in this changed landscape.

For investors caught in the illusion of a potential upswing in its first quarter, sales will likely get burned. The uptick echoes the lingering effects of Covid while AMC’s business continues to retract.

GameStop (GME)

GameStop (NYSE:GME) has seen a rollercoaster journey, catapulted into the limelight during the meme stock frenzy of 2021.

The catalyst was former Chewy CEO Ryan Cohen, who wagered big on GME, buying vast quantities of shares in the belief of an overly pessimistic valuation.

Cohen’s move ignited a frenzy among speculators, which took GME stock’s valuation from mere dollars to an eye-watering $120 in mere weeks, despite its struggling brick-and-mortar business.

Fast forward, and Cohen has taken charge as the CEO of GameStop, a change that led to a steep share price tumble. However, the firm’s financial health remains under question beneath the executive shifts. The first quarter saw incredibly weak sales and substantial losses.

A more pressing question remains for potential GameStop investors, as consumers increasingly turn towards digital services for gaming, doesn’t the shift render GameStop’s business obsolete?

Carvana (CVNA)

Used car retailer Carvana (NYSE:CVNA) may be the current belle of the meme stock ball, but a thorough financial examination suggests otherwise.

Though Wall Street may have applauded Carvana’s recent rosy second-quarter outlook, the celebration seems premature. The surge is merely a blip powered by a timing anomaly in loan sales. The shadow of last year’s used car bubble still looms ominously.

Carvana’s balance sheet tells a sobering tale of a firm stuck in the mud. A colossal debt exceeding $8 billion and accumulated losses surpassing $2.2 billion added to its financial uncertainty.

Its history of negative cash flows, capital infusions via debt issuances, and stock market fundraising punctuate its struggling financial narrative.

Blackberry (BB)

Once a titan in the realm of smartphones, Blackberry (NYSE:BB) has seen its star dim, transforming from industry leader to infamous meme stock.

Following the iPhone’s game-changing arrival, BlackBerry bowed out, rebranding itself as cybersecurity and the Internet of Things player. Yet, as financial turmoil brews, BlackBerry’s current predicament starkly contrasts its previous exploits.

BlackBerry kick-started a cash-acquisition adventure, offloading 32,000 patents from its mobile devices and wireless networking operations. Despite such questionable maneuvers, the management has unwavering optimism over its future.

Forecasting a promising 13.5% compounded annual growth over the next three years, it’s banking on its nascent IoT and cybersecurity operations for long-term gains.

After a decade-long wait for a BlackBerry resurgence and a spotted history, the road to a triumphant comeback seems elusive.

Beyond Meat (BYND)

Companies such as Beyond Meat (NASDAQ:BYND), hitching their wagons to the ebb and flow of consumer trends, often stumble on the path to stable long-term growth.

Spotting the next big thing in food, like plant-based meat, can be straightforward. However, transforming into a sustainable business for the long haul is a major challenge for firms.

Beyond Meat’s recent financials suggest the plant-based meat wave may have died down. The company’s revenues slid 15.7% in the first quarter. Its most recent quarterly loss is $59 million, tainting the firm’s financial picture.

Beyond Meat is grappling with consumer taste perception issues alongside declining sales. These stumbling blocks and stock trading more than 100% higher than its sector average remain a major problem.

On the date of publication, Muslim Farooque did not have (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