The 7 Best Meme Stocks to Buy in January 2024

Stocks to buy

Some of the best meme stocks came into the limelight during the euphoric market rally in 2021. These stocks have gained significant attention on social media, which can potentially impact prices. During 2021, some of the best meme stocks skyrocketed and delivered multibagger returns in weeks. Of course, we are nowhere close to that bullish market sentiment, but there are attractive meme stocks to consider.

An important point is that the rally in meme stocks can be completely dissociated from fundamentals. However, it makes sense to consider meme stocks with average or good fundamentals rather than purely speculative names.

I want to add here that with the possibility of rate cuts this year, it’s likely that meme stocks will be in action. Multiple rate cuts would flood the financial system with liquidity, and there is bound to be some speculation. This column focuses on seven of the best meme stocks to buy for stellar returns in 2024.

Best Meme Stocks: Riot Platforms (RIOT)

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Riot Platforms (NASDAQ:RIOT) stock had a stellar rally in the last cryptocurrency bull market. Considering the rally in Bitcoin (BTC-USD), I expect a big upside from current levels of $15.6 considering the rally in Bitcoin. Returns of at least 100% seem likely this year if Bitcoin trades near previous all-time highs.

Leaving the high social media interest aside, Riot Platforms will likely rally on the back of strong fundamentals. As of Q3 2023, the company had a zero-debt balance sheet and a cash buffer of $599 million (including digital assets).

With high financial flexibility, Riot has undertaken an aggressive expansion plan. The company expects to increase Bitcoin mining capacity to 28.8EH/s at the end of this year, implying more than 100% growth on a year-on-year basis. Capacity is further expected to increase to 38.1EH/s by the end of 2025. If this is associated with an upside in Bitcoin, Riot is positioned for robust revenue and cash flow upside.

Tilray Brands (TLRY)

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Tilray Brands (NASDAQ:TLRY) is another meme stock that I expect to surge relatively soon. TLRY stock looks deeply undervalued at $2; a 100% rally can come in the blink of an eye.

Strong fundamental developments underscore my view. Recently, Tilray reported Q2 2024 results, which point to good times ahead. Revenue increased by 34% on a year-on-year basis to $194 million.

Strong numbers from the medicinal cannabis and craft beer business drove this growth. It’s worth noting that through multiple acquisitions, Tilray is already the fifth-largest craft beer brewer in the United States. With a diversified business and expanding global presence (medicinal cannabis), the outlook is bullish.

Coupled with solid growth, Tilray expects positive adjusted free cash flow for the financial year 2024. As EBITDA margin improves on operating leverage, I expect TLRY stock to trend higher. Further, the addressable cannabis market is significant, with federal legalization as a big impending catalyst.

Joby Aviation (JOBY)

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In July 2023, Joby Aviation’s (NYSE:JOBY) stock surged to highs of $12. A correction has followed, with JOBY stock declining by 40% in the last six months. However, I believe the sell-off is overdone, and the flying car stock is poised for a strong reversal rally.

Regarding positives, 84% of the certification plans have been completed with the Federal Aviation Authority. The target is to commercialize commercial passenger service in 2025, which seems likely. In November 2023, the company performed an exhibition flight in New York City. Joby has also delivered its first electric air taxi to the U.S. Air Force as a part of the $131 million order.

Recently, the company partnered with ANA Holdings and Nomura Real Estate Development to develop Japan’s take-off and landing infrastructure. This will support the commercialization of Joby’s electric air taxi service nationwide.

Polestar Automotive (PSNY)

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Polestar Automotive (NASDAQ:PSNY) looks like a good bet among the best meme stocks in the EV space after a plunge of 65% in the last 12 months. Considering the business outlook, I would bet on the stock surging higher in the second half of 2024.

The first reason to be bullish is the potential growth in car deliveries. Polestar 4 commercial deliveries have commenced, and Polestar 5 is also lined up for launch this year. For 2023, the company has estimated global deliveries of 60,000 vehicles. Further, the guidance is to boost deliveries to 160,000 cars by 2025.

Therefore, Polestar is positioned for stellar revenue growth. At the same time, the company has taken cost-cutting initiatives and expects cash flow to break even in 2025. I expect multibagger returns within the next 24 months if this is achieved.

With $951 million in liquidity, the company is financed for the coming quarters. I would expect further equity dilution before internal cash flows suffice for investments. Fundraising is unlikely to be a concern if financial metrics improve in the coming quarters.

Rivian Automotive (RIVN)

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In November 2021, Rivian Automotive (NASDAQ:RIVN) stock surged above $150. Therefore, the decline to current levels of $19 has been significant and driven by a readjusted valuation. The short interest in the stock remains relatively high at 15%. I believe that RIVN stock is poised for a comeback rally.

It’s worth noting that For Q4 2021, Rivian delivered 909 vehicles. As of Q4 2023, the vehicles delivered have increased to 13,972. Further, the company has delivered 50,122 vehicles for the last financial year.

However, Rivian has guided for an adjusted EBITDA loss of $4 billion for 2023. This is a key concern for the markets. There are, however, two positives to note. First, with $10.2 billion in liquidity as of Q3, Rivian is fully financed for the next 12 to 18 months. Further, for Q3 2023, Rivian reported an adjusted EBITDA loss of $942 million as compared to an adjusted EBITDA loss of $1.3 billion for Q3 2022. If losses continue to narrow, it will be positive for RIVN stock.

DraftKings (DKNG)

DraftKings (NASDAQ:DKNG) is among the nest meme stock picks from the online sports betting (OBS) and iGaming business. The company is active in more than half of all U.S. states and has a big addressable market. Further, with profitability on the horizon, DKNG stock is poised to sustain the rally.

In terms of the market size, DraftKings expects the total addressable market (from existing states) to increase to $30 billion by 2028. Assuming that the company is active in all states, the potential addressable market can be $50 billion by 2030. Therefore, DraftKings has ample headroom for growth.

Another important point to note is that DraftKings expects an adjusted EBITDA of $400 million this year. The company has guided for adjusted EBITDA of $1.4 billion and $2.1 billion, respectively, in 2026 and 2028. As cash flows swell in the coming years, DKNG stock will likely trend higher.

Solid Power (SLDP)

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After a significant correction, Solid Power (NASDAQ:SLDP) stock has been in a consolidation mode in the last 2.5 months. I believe that a reversal rally is impending from oversold levels.

As an overview, Solid Power is working towards commercializing solid-state batteries. If the progress is smooth, the battery will likely be commercialized in 2026 or 2027. While that’s a few years away, I expect the stock to trend higher based on the progress toward the final product.

In an important business development, the company has made its first A-1 EV cell deliveries to BMW (OTCMKTS:BMWYY) to formally enter automotive qualification. If the validation tests yield positive results, it’s likely to be a major catalyst for stock upside.

It’s worth noting that in December 2022, Solid Power licensed its cell design and manufacturing technology to BMW for parallel R&D. This can potentially accelerate the commercialization timeline.

On the date of publication, Faisal Humayun did not hold (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.

Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.

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