“Swap out these three meme stocks for meme coins.”

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The popularity of meme stocks and their impact on investment fundamentals has been overshadowed by social media. Similar to the comparison of Bitcoin to blue-chip stocks, meme stocks are now being compared to altcoins. Both are influenced by short-term spikes in value and underlying narratives. However, just as quickly as meme stocks can rise, they can also decline. This article analyzes three meme stocks that may be facing a downturn and should be reevaluated for inclusion in speculative portfolios.

The first stock is Rivian Automotive (RIVN). Since the decline of the meme stock craze in November 2021, RIVN has plummeted by 92%. Currently trading at $10.10, it is only 0.9% higher than its 52-week low. The stock has a short float of 20.89%. While some may view this as a buying opportunity, it is important to consider if Rivian is a strong electric vehicle (EV) growth stock. Although the company surpassed its production goal for 2023, its outlook for 2024 is stagnant and it continues to experience losses for each vehicle manufactured. With demand now plateauing, Rivian’s cash burn is unsustainable.

The second stock is Tupperware Brands (TUP). Despite increases in valuation in August 2022 and July 2023, TUP has consistently declined, losing 93% of its value since November 2021. The company’s direct sales business model is struggling to compete with e-commerce giants like Amazon. Tupperware Brands attempted to improve its model by partnering with Target and Amazon, but sales have not improved. In 2022, the company reported an 18% year-over-year decrease in net sales. Recently, TUP postponed its full-year 2023 earnings report, signaling further decline. Shareholders should consider cutting their losses.

The third stock is Allogene Therapeutics (ALLO). While ALLO has seen a 9.4% increase this year, it lacks a diverse portfolio of revenue-generating drugs. The company reported a $327.3 million net loss for the full-year 2023. Its 2024 outlook anticipates further losses and depletion of cash and cash equivalents. Due to the experimental nature of its drug lineup and obstacles to regulatory approval, the company will likely need new funding before exhausting its cash supply in 2026. Investors with low risk tolerance should reconsider their investment in ALLO.

Overall, these three meme stocks may be at risk for a downturn and should be reassessed for inclusion in speculative portfolios. It is crucial to examine their current trajectories and consider the sustainability of their business models and financials.