This inclusion wasn’t merely a reflection of external circumstances but a testament to its weak financials. To make matters worse, its recent 10-Q filing carried a ‘going concern’ statement, triggering a steep decline in stock value. The company’s been dealt a harsh hand by fate, with its primary business model of offering shared workspaces taking a monumental hit in the wake of the Covid-19 pandemic’s work-from-home mandate. Next on the list of meme stocks to sell now is WeWork (NYSE: WE). While its management remains buoyant, projecting sufficient capital to tide over a year, the massive gap between the company’s expenditures and anticipated revenue points to a major liquidity crunch. Its second-quarter results showed zero revenues and steep losses as the spotlight shifts glaringly onto its operational inefficiencies, setting off alarms about the sustainability of its financial health. Moreover, despite landing a $63 million purchase order recently, its balance sheets tell a story of a company in duress, grappling with massive operational outflows and a rising cash burn rate, which saw them expending roughly $70 million in the first half of this year. A bold maneuver, considering its share price has dropped 90% since February, compounded by a trio of reverse stock splits this year alone.
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Mullen Automotive (NASDAQ: MULN) is attempting to rise from its ashes, rallying significantly after a series of market updates, including a $25 million share buyback initiative. A buyout might be the silver lining they’re hoping for - for the company’s sake and its investors. Amid this turbulence, whispers of a potential acquisition have become louder. While its management points to seasonality as a culprit, the undeniable reality is that the company will continue to falter in the post-pandemic world, with inflationary pressures damaging future growth prospects. Its most recently released quarterly report showed per-share losses nearly doubling compared to market expectations with lackluster forward guidance, which led to multiple analyst downgrades.Ĭoupled with a rising churn rate and dreary new subscriber additions, one might ponder if the luxury exercise brand is at its saturation point amongst its target demographic. Peloton (NASDAQ: PTON) is among these meme stocks to sell due to its horizon appearing rather clouded in the aftermath of product recalls and a noteworthy surge in insider stock sales.
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