No Short Squeeze: 3 Meme Stocks to Sell Before They Break Your Heart

Stocks to sell

Meme stocks became a cultural phenomenon when shares of Gamestop shot to the moon in early 2021. A group of Reddit (NYSE:RDDT) traders rallied around meme stocks, stunning Wall Street by showcasing the power of collective retail trading. Though many consider it a “gotcha” moment against the financial bigwigs, the move hurt all investors alike, making meme stocks to sell a relevant topic of discussion.

Most of the gains achieved by meme stocks shortly after the retail trading frenzy were lost. Moreover, meme stock rallies since then have been few and far between, though they still and perhaps will always remain relevant. Also, with greater scrutiny on retail trading activity, it’s best to avoid meme stocks to sell, offering little to no upside ahead.

Meme Stocks to Sell: AMC (AMC)

The AMC Empire 25 Cinemas in Times Square in New York

Source: rblfmr /

Theatre-chain operator AMC Entertainment (NYSE:AMC) is one of the two original meme stocks that have shed a ton of value in the past few years. In the past three years, AMC stock has dropped more than 93%, dropping 92% in value last year. A lot of its struggles are linked to the significant challenges facing the cinema space due to shifts in consumer behavior and the effects of digital streaming. Moreover, with its massive debt load of $9.1 billion dwarfing its cash balance of $884 million, there seems to be no end to AMC’s misery.

It recently reported encouraging financial results on paper for the fourth quarter (Q4). AMC beat estimates across both lines by comfortable margins, but virtually all of the increase in its sales and EBITDA during the quarter was linked to a pair of high-profile concert movies. Additionally, AMC’s percentage of float shorted has risen by 10.91% from January 31 to 13.85% on March 15. The increase is mainly due to its lackluster operating results and the lack of future growth catalysts.

Nikola Motors (NKLA)

Image of NKLA logo on phone screen

Source: Stephanie L Sanchez /

Once a promising electric-vehicle (EV) upstart, Nikola Motors (NASDAQ:NKLA) now stands as a cautionary tale of how quickly fortunes can turn. Following the conviction of its founder, Trevor Milton, for fraud a couple of years ago, the goal was to navigate choppiness under the leadership of ex-GM executive Thomas Okray. Though efforts were made to steady the ship and reshuffle the executive team, the journey ahead has proven incredibly testing. We saw a glimmer of homes in mid-2023 until the optimism was quickly doused by a recall of 209 electric semis due to a critical battery defect.

The firm produced just 35 hydrogen fuel cell electric trucks, posting modest sales of $11 million in its most recent quarter. On top of that, its financial health is waning, with it posting a staggering $154 million operating loss. Moreover, some may rejoice at the substantial capital infusion last quarter. Still, the financial band-aid comes at a high cost to shareholders. More concerning is the burn rate; with losses surpassing $150 million each quarter, Nikola’s financial runway is alarmingly short, threatening its going concern status.

Blackberry (BB)

the BlackBerry (BB) logo presented on a white background

Source: Shutterstock

Once a juggernaut in the smartphone industry, BlackBerry is now a shadow of its former self. The company lacks focus, though, spreading its efforts thin across different tech verticals without concentrating on a specific sector. Consequently, BB stock is down more than 71% in the past three years and 28% in the past year alone. This downward spiral contrasts the multi-year highs achieved in 2021 during the meme stock craze.

BlackBerry has been looking to steady the ship through drastic downsizing efforts, C-suite changes, and a pivot to the IoT space. Consequently, its long-standing CEO, John Chen, was replaced by John Gamatteo to kickstart the shift. Moreover, one of the main goals under Gamatteo’s leadership is for it to expand its market share in IoT and cybersecurity. However, given the lack of noteworthy cybersecurity expansion during John Gamatteo’s tenure as the segment’s president, it raises serious questions about BB’s future. Therefore, given the lack of solid growth drivers, expect BB stock to continue sliding to new lows.

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 Publishing Guidelines.

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

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