3 Meme Stocks That Could Skyrocket in the Next 12 Months

Some investors made big money in the meme stock rally of 2021. Multi-bagger returns in few days or weeks is like a dream coming true. Of course, in the current market conditions, expectations should be toned down. Having said that, exposure to some of the top meme stocks can deliver stellar returns in the coming quarters.

Meme stocks are typically companies that have generated a solid following on certain social media platforms. Via memes, retail investors commiserate over why particular companies are worth buying. Most of the time, the investing rationale behind meme stocks doesn’t have anything to do with business fundamentals.

However, that’s not to say all meme stocks are companies without any sort of solid business fundamentals. In fact, there are some speculative stocks that may have significant upside that retail investors are getting right, from a business model perspective.

Here are three meme stocks I think fit this profile right now. These are each companies with average to solid business fundamentals, and catalysts that could lead to these stocks skyrocketing within the next year.

Tilray Brands (TLRY)

Tilray Brands (NASDAQ:TLRY) is among the stocks that’s seen a big correction this year. Indeed, TLRY stock has dropped approximately 37% on a year-to-date basis in 2023. A major reason for this decline is the company’s recent $150 million convertible note offering. However, despite this negative price action, I believe that the stock is deeply oversold, and a sharp reversal rally is on the cards.

One reason to be bullish is an indication by the Senate chairman that the marijuana banking bill is heading to a committee vote within the coming weeks. Positive news on this front can trigger a strong rally.

From a financial perspective, Tilray expects all operating business units to be free cash flow positive in fiscal year 2023. The company has already been reporting positive adjusted EBITDA on a sustained basis.

With $408.3 million in cash and cash equivalents, the company is positioned to invest in organic and acquisition-driven growth. Recently, Tilray completed the acquisition of Hexo (NASDAQ:HEXO) to boost its presence in the Canadian market.

Marathon Digital (MARA)

Marathon Digital (NASDAQ:MARA) stock has already surged 180% year-to-date in 2023. That said, I believe that the crypto stock is poised for a continued rally over the coming quarters.

There are three primary reasons to be bullish. First, MARA stock has a short interest of 25% of its free float. I expect a short squeeze rally for this top meme stock. Further, Bitcoin (BTC-USD) seems to be in a consolidation zone. With the cryptocurrency halving due in 2024, I expect sharp upside. MARA stock is likely to trend higher in-sync with the rally in Bitcoin.

Another reason to be bullish on MARA stock is tied to mining capacity. Marathon Digital reported mining capacity of 15.2EH/s as of May. However, the company expects to boost capacity to 23EH/s by June. With robust growth in capacity, MARA stock is likely to trend higher.

As the company’s mining activity accelerates, digital assets held on its balance sheet will swell. The corresponding impact on valuation is likely to be significant, particularly if Bitcoin trades near all-time highs in 2024.

Blink Charging (BLNK)

Blink Charging (NASDAQ:BLNK) has corrected almost 40% year-to-date in 2023. The company missed Q1 earnings estimates, something that has accelerated the correction. At roughly $6 per share, BLNK stock is among the top meme stocks to buy for those betting on a major reversal rally.

It’s worth noting that BLNK stock carries a high short interest that’s currently at 27% of the company’s free float. This means that any sort of good news can trigger a massive short squeeze rally for the stock.

For Q1 2023, Blink Charging reported revenue growth of 121% on a year-over-year basis to $21.7 million. A big positive is that services revenue increased by 216% to $4.8 million. As the number of installed charging stations swells, the company’s recurring revenue is likely to remain robust. This will boost the company’s EBITDA margin in the coming years.

For the year, Blink has reaffirmed its revenue guidance of $100 to $110 million. Further, the company expects gross margins of 30%. If the coming quarter results reaffirm this target, BLNK stock is likely to surge.

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.