7 Meme Stocks to Buy on the Dip

Undoubtedly, one of the most remarkable phenomena that impacted the equities market following the coronavirus pandemic was the rise of the meme trader. Leveraging the psychology of the masses, everyday folks — often inspired by the people-versus-the-elites narrative — coordinated their efforts via social media, creating dramatic upside. Now, investors who missed the boat have the chance to consider these meme stocks to buy on the dip.

To be clear, this sector is less about the underlying fundamentals and more about inspiring a movement to help lift shares higher. Of course, meme traders do consider the fundamentals in their research. However, it’s fair to say that when you’re eyeballing meme stocks to buy on the dip, you’re doing so with the expectations of robust profitability over a relatively short period.

Therefore, no guarantees exist. You’ve got to exercise your discretion, understanding that these names could go sour.

Finally, for the critics that might say I don’t know what a meme stock really is, you’re absolutely right. Therefore I selected names from the Roundhill MEME ETF (NYSEARCA:MEME).

And with that, here are seven meme stocks to buy on the dip:

Meme Stocks to Buy: Occidental Petroleum (OXY)

To be perfectly transparent, among the featured meme stocks to buy on the dip, I have the most confidence about Occidental Petroleum (NYSE:OXY). Although it’s not much of a dip considering that OXY has only lost about 4% over the trailing week since the close of Jul. 12, it enjoys a fundamentally powerful narrative.

As an upstream oil and natural gas player, Occidental is certainly risky compared to the generally more stable midstream outfits. However, with Russia’s invasion of Ukraine effectively shelving a significant portion of global hydrocarbon energy supplies, many if not most critical resource producers in geopolitically stable regions have enjoyed a boost in demand.

Currently, it’s possible that Occidental suffered a slowdown in its meteoric rise due to economic headwinds such as inflation taking a bite out of consumer sentiment. Still, with western nations clashing with Russia, oil seems to be destined to go up, not down. Therefore, OXY is one of the meme stocks to buy on the dip.

Rivian Automotive (RIVN)

While many experts are fond of saying that electric vehicles (EVs) are the future, this sentiment has not translated to holistic gains for the sector. Take Rivian Automotive (NASDAQ:RIVN) as an example. When it launched its initial public offering late last year, it did so to much fanfare. However, on a year-to-date basis, RIVN is down nearly 71%. Since its first public close, shares have plummeted almost 77%.

Another factor that caught investors’ attention is rumored Rivian layoffs. On Jul. 11, a Bloomberg report stated that management was planning to trim about 5% of its workforce. Though nothing is confirmed yet, the broader technology sector has experienced a rise in pink slip distributions. Thus, a layoff at the company wouldn’t be especially surprising.

Nevertheless, RIVN could be one of the meme stocks to buy on the dip because its most recent quarterly earnings report demonstrates progress in production and delivery stats. Further, Rivian EVs are quite attractive, offering well-heeled consumers an alternative to Tesla (NASDAQ:TSLA) vehicles.

Meme Stocks to Buy: Lucid Group (LCID)

For those who looking to invest in the next Tesla, Lucid Group (NASDAQ:LCID) might offer an enticing and viable alternative. Perhaps more so than any other EV upstart, Lucid is focused on dominating the upper end of the income strata. Of course, management would like to offer practical EVs to the middle-income crowd. However, the present economies of scale don’t yet facilitate such vehicular equity.

Plus, the unique nuances and impacts of the new normal effectively means that Lucid — and everyone else — has little choice but to address the most affluent buyers.

However, that might not be a bad position to be in. Historically, new technologies take time to integrate with a wider audience. Indeed, the first consumers of innovation tend to be the affluent. Therefore, with Lucid focusing on rich customers, they can establish market dominance while waiting for EV battery costs to come down enough to address the customer demographics with more modest means.

DoorDash (DASH)

Back in December 2020, I wrote a not-so-flattering piece about DoorDash (NYSE:DASH) that, if I remember correctly, received much criticism. At the time, I mentioned that DASH stock could make a delivery to $72. Well, interestingly enough, it did just that. At the time of writing, DASH is trading hands for just over $71.

However, I’m not necessarily tooting my horn here since I was a year too early. DASH enjoyed a very robust 2021, so in hindsight, it was one of the meme stocks to buy on the dip. Still, I think the fundamental argument was valid in that the valuation of DASH required a correction relative to the broader damage inflicted on the eatery business as a whole.

But now that DASH has finally reached my original downside target, it could be time for another repeat; as in, it makes an interesting case for meme stocks to buy on the dip. According to food delivery trends, momentum from 2021 is carrying over into this year. Additionally, offices that are finally opening back up may be taking advantage of such services, boding well for DoorDash.

Meme Stocks to Buy: Robinhood Markets (HOOD)

Admittedly, the narrative for Robinhood Markets (NASDAQ:HOOD) being one of the meme stocks to buy on the dip is difficult. Since the start of the year, HOOD has tanked over 54% of market value. Since its public market debut and its first closing session, HOOD is down nearly 76%.

Unfortunately, the viability argument is where many investors have their doubts about Robinhood. For instance, the brokerage app posted revenue of $299 million in the first quarter of 2022, down nearly 43% against the year-ago level. Fundamentally, the erosion of young investor sentiment — for cryptocurrencies and yes, meme stocks to buy on the dip — impeded upward mobility for HOOD stock.

However, peruse social media platforms and you can see that many other investors are committed to popular publicly traded assets. They are not going anywhere. With sentiment still so violently strong, HOOD stock might still be a downwind beneficiary.

Snowflake (SNOW)

One of the companies that debuted in the public equities sphere amid the worst of the pandemic in September 2020, Snowflake (NYSE:SNOW) enjoyed a strong series of opening performances, eventually averaging near $400 in early December of 2020. Following a correction throughout most of the first half of last year, SNOW then went on to close above $400 briefly before eventually tumbling in November.

Since then, it has been an ugly road for SNOW stock. On a year-to-date basis, shares have hemorrhaged 56% of market value. Likely, economic factors, such as inflationary pressure weighing on corporate earnings, resulted in Snowflake’s enterprise-level clients trimming their overhead costs. Nevertheless, for those with the speculative bug, SNOW could be one of the meme stocks to buy on the dip.

Snowflake specializes in bringing together various applications — data engineering, cybersecurity and machine learning, among others — under one cloud umbrella. Its data lake-related services should enjoy longer-term relevance. Per Grand View Research, the global data lake market will likely expand at a compound annual growth rate of 20.6% from 2020 to 2027, reaching a valuation of $31.5 billion at the end of the forecasted period.

Meme Stocks to Buy: Peloton (PTON)

Home exercise-equipment specialist Peloton (NASDAQ:PTON) epitomizes the wild ebb and flow that dictated prior meme stocks to buy on the dip. At first, Peloton generated some minor controversy for its arguably tone-deaf commercial featuring an athletic and attractive actress being gifted an exercise bike by her husband. Later, though, the coronavirus pandemic made Peloton the perfect mitigation for the new normal.

As health experts stated, Americans added a few unwanted pounds during the worst of the crisis. Of course, the forced sedentary lifestyle didn’t help. Therefore, for the customers that could afford it, Peloton was a lifesaver.

Unfortunately for the company, society gradually became acclimated to Covid-19. As it did so, PTON plummeted as the underlying business lost relevance. Still, for the boldest of contrarians, PTON could be one of the meme stocks to buy.

Basically, Peloton will outsource the manufacturing of its exercise bikes and treadmills in an effort to simplify its cost structure. Some evidence suggests investors appreciate the move, meaning that gamblers can possibly get in early on a rising trade.

On the date of publication, Josh Enomoto 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.