For a couple of years now, meme stocks have been a wildcard as investors worldwide have seen plenty of challenges. Between the Covid-19 virus and the ensuing economic recession, it’s been hard to keep on top of things.
However, while some load, some investors have been able to profit from the volatile conditions by investing in so-called “meme stocks.”
These are often high-growth companies with a strong online presence that have become popular among retail investors. While there’s no guarantee that these companies will continue to perform well, many hot meme stocks have made multimillionaires out of newbie investors.
The recent success of Bed Bath & Beyond (NASDAQ:BBBY) is a clear indicator that meme stock mania is far from over.
When choosing meme stocks, there are several factors to consider. If you’re new to investing and have no idea where to start, it’s best to research the different companies and their products before you make a decision.
Although meme stocks are categorized by their volatility, some companies have excellent operating models that Reddit investors love. In this article, care has been taken to include only those hot meme stocks generating chatter online with strong growth prospects.
Here are three hot meme stocks to buy in September.
DoorDash (NYSE:DASH) is quickly becoming one of the most popular food delivery platforms. The company has a strong presence in major cities across the country, and its service is reliable and affordable.
DoorDash is also a great investment. The company is well-funded and is growing rapidly. Its gross order value is expected to be around $51 billion to $53 billion in 2022, expanding into new markets.
The recent results from DoorDash confirm it is progressing in the right direction. Doordash has continued to grow. The number of orders increased by 23% to 426 million, which is an impressive rise. As a result, the food delivery platform saw a 30% year-over-year increase in revenue.
The number of monthly active DoorDash users is constantly increasing, leading to a steady number of daily orders. Covid-19, as you might remember, had caused a major change in the labor market for the company. Companies like DoorDash are having trouble attracting new employees and retaining current ones because of it. However, with revenue per rider rising, employees will keep on increasing.
In addition, DoorDash is changing its strategy and embracing different operating models apart from food delivery. DoorDash has updated its website and apps with new ads. The push into advertising aligns with the company’s goal to diversify its business beyond food delivery.
SoFi Technologies (SOFI)
SoFi Technologies (NASDAQ:SOFI) is a leading fintech company that offers online banking, investing and other personal finance products.
The company has grown to serve more than 3.8 million members as of the end of the first quarter and has become a major player in the online banking and investment industries. SoFi offers a variety of products and services that can help people save money, grow their investments, and manage their finances.
Reddit users love SoFi because of its immense growth potential and its fintech credentials. However, SoFi has gone out of its way to ensure it has a sustainable path to success.
That includes building out its ecosystem and diversifying from its most important business area, the student loan segment. The move is understandable considering the student loan forgiveness initiatives and the extension of the moratorium on student loan payments, which will expire on Dec. 31, 2022.
This has forced SoFi to become creative with its product portfolio, which has done in spades. By pursuing an aggressive acquisition strategy, it is well on its way to becoming a one-stop shop for almost all financial needs.
The acquisition of a bank charter is icing on an already delicious cake. Management expects yearly revenue for 2022 to be $1.505 billion to $1.510 billion and full-year earnings before interest and taxes to be between $100 million and $105 million. All these things ensure that SoFi will continue to be a very important player in the fintech space in the future.
Rivian Automotive (RIVN)
Rivian (NASDAQ:RIVN), an electric vehicle maker focusing on developing electric trucks and SUVs. Investors should remain interested because the company continues to affirm production targets during a time when rivals are taking a step back due to ongoing supply chain issues.
Remember, Rivian Automotive suffered a net loss of $1.7 billion in the second quarter. So, these are still early days for the enterprise. Losses are expected. However, if the company can keep on producing cars, investors will not mind much.
Rivian is doing a great job. It manufactured 4,401 vehicles, up 72% year over year, in the second quarter. Also, management reaffirmed guidance to produce 25,000 cars for the full fiscal year. This is music to the ears of many EV investors, who are still reeling from Lucid Motors (NASDAQ:LCID) cutting its production forecast two times this year.
Rivian faces stiff competition from other electric vehicle startups, as well as from established automakers who are entering the electric vehicle market. But the potential rewards are very high. For investors willing to take on a high level of risk, Rivian is a good investment.
On the publication date, Faizan 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 InvestorPlace.com Publishing Guidelines.