Editor’s Note: “Meme stocks” are equities that rise (and fall) not on the strength of their earnings or the brilliance of their business models, but on digital groupthink. They skyrocket on social media frenzy and the cameos of CNBC “experts” who have more confidence than credentials.

Once upon a time in the 17th century, Dutch traders turned tulip bulbs into gold, until the bubble burst. This infamous example of financial folly reflects a timeless pattern of human behavior.

Below, I examine four meme stocks that are modern-day equivalents of tulip mania. Savvy investors should give them a wide berth.

1. The Emperor’s New EV

Once an admired pioneer, Tesla (NSDQ: TSLA) has become a cautionary tale. After disastrous first-quarter 2025 operating results, U.S.-based Tesla finds itself trailing in the electric vehicle (EV) race it once led. Chinese competitors such as BYD are eating its lunch with cheaper, better-built cars.

BYD has surpassed Tesla to become the world’s largest EV maker. BYD sold 1,777,965 EVs in 2024, compared to Tesla’s 1,774,442. This trend has been continuing so far in 2025, with BYD outpacing Tesla not only in China but in crucial markets such as Europe.

Meanwhile, in the public’s perception, Tesla CEO Elon Musk has gone from “visionary” to “megalomaniac” in record time. His erratic behavior, crypto shilling, and political grandstanding have made Tesla a toxic brand.

Sales of Tesla vehicles have plunged around the world, as Musk’s embrace of far-right politics alienates the company’s progressive customer base. With reports of ketamine use casting a shadow, Musk’s pivot from leadership to spectacle is exacting a toll on the company.

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Tesla’s net profits were down by more than 70% in Q1 2025 compared to the same period last year. Global profits hovered at $409 million for January through March, down from $1.4 billion in the same period of 2024. These horrendous results followed an earlier decline of 45% in net profits between Q1 2023 and Q1 2024. The following chart tells the story of a once-proud company in free fall:

The stock’s recent rally has been propelled more by blind devotion than hard data. TSLA remains massively overvalued and it’s heading for a date with gravity.

2. The MAGA Mirage

Trump Media & Technology Group (NSDQ: DJT) exemplifies what happens when political fervor intersects with speculative investing.

For full-year 2024, DJT reported revenue of $3.6 million, a 12.4% decrease year-over-year compared to 2023, for a net loss of $400.9 million. In its first quarter of 2025, DJT reported about $821,000 in revenue, a 6.58% increase year-over-year, for a net loss of $31.7 million.

And yet, as of this writing, DLT’s market cap is $5.4 billion. DJT has been valued in the billions by folks who believe spreading conspiracy theories on a livestream constitutes a viable business model.

As bond yields spike, recession fears loom, and market volatility worsens, DJT holders are busy posting memes and shouting “To the moon!” This stock just might land there, without a return ticket.

3. Sealed With Hype

Once the crown jewel of 1960s kitchens, Tupperware Brands (OTC: TUPBQ) has become a meme darling for reasons no credible analyst can adequately explain.

The company is burdened by a staggering debt load and plummeting revenue, all of which ultimately led to its bankruptcy in September 2024. That same month, Tupperware was delisted from the NYSE and it’s now trading over-the-counter (OTC) as a penny stock.

To be sure, Tupperware secured a deal to extend the maturity of $348 million in debt to 2027, combined with access to borrowing capacity of $21 million. The company is now focused on a turnaround plan.

However, many naive investors have cheered this refinancing deal as if it were a cure for cancer, completely ignoring the fact that Tupperware’s fundamentals still look like an expired casserole. Those who are betting on Tupperware’s comeback are clinging to nostalgia instead of earnings.

Tupperware Brands is the financial version of a zombie: technically alive, but only because some folks on TikTok think it might be fun to “revive” it. My advice to these meme traders: put a lid on it.

4. Vietnamese Fantasy

VinFast Auto (NSDQ: VFS), the Vietnam-based EV startup, went public in August 2023 with a bang, but it has since gone boom. The stock has rallied in recent weeks in the wake of mildly encouraging operating results, but the company’s valuation still remains exceptionally high, especially relative to other automakers, and its financial health is weak.

The stock’s price appears to be fueled more by short-term trading and speculative momentum than by underlying fundamentals.

VinFast has consistently reported significant losses in every quarter since its listing on the NASDAQ. In 2024, the company’s earnings were -$1.96 billion USD. For Q1 2025, despite growth in vehicle deliveries, VinFast reported a net loss for the quarter.

That hasn’t stopped Reddit’s savants from declaring it “the next Tesla,” a pronouncement made with the breezy confidence of someone ordering champagne on someone else’s tab. In a world where earnings, market share, and brand recognition still matter, VinFast is simply fast at one thing: destroying capital.

The lesson of these four stocks? Don’t invest like a mindless lemming just because something’s trending.

Social media is where you should post brunch photos, not build retirement strategies. As with any investment, ignore the noise and follow the fundamentals: earnings growth, durable competitive advantage, and reasonable valuation. Because when the bubble bursts, and it always does, you don’t want to be the one holding a bag full of hot air and hashtags.

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