Which Meme Stocks Have the Most 10X Potential?

There's a general consensus among stock market experts that some of the major "meme stocks" -- including GameStop (GME 6.16%) and AMC Entertainment (AMC 3.96%) -- aren't going to work out well for investors who buy them at the current share prices. On the other hand, there are some popular meme stocks that could indeed be capable of 10X returns, or even more, if things go well. In this Fool Live video clip, recorded on June 25, Fool.com contributor Matt Frankel, CFP, and Chief Growth Officer Anand Chokkavelu discuss which of these popular stocks could provide the biggest returns to shareholders over the next few years. 

Anand Chokkavelu: If you had to guess which one could 10X from here, do you have any strong contenders?

Matt Frankel: It depends what our time frame is.

Chokkavelu: 10 years.

Frankel: If you were going to say 20 years, Virgin Galactic (SPCE 3.15%) would be my number one. I think they have a 100X potential, but in 20 or 30 years from now. I just think it's way too early. As far as a quicker 10X, I would say maybe Clean Energy (CLNE 8.00%), maybe Corsair (CRSR 1.53%) -- probably be between those two. Probably Corsair, I'd have to give it to.

Chokkavelu: We talked about Clover Health (CLOV 1.49%), if it hits really big. I could see that. ContextLogic (WISH 1.40%), Wish. This is the upside. Even something like BlackBerry (BB 1.80%), if everything works out as it is. Corsair, I'm not as bullish on a 10X, but maybe, perhaps. This isn't the strongest contender list.

Frankel: I like how you brought up that they have some adjacent market opportunities. Like you and me, we're not video gamers, but those chairs look pretty comfortable. Their headsets might be better than just standard headsets for our purposes. There is a lot of adjacent opportunities. I could see the gig economy really growing over the next decade or so, them having a lot of opportunity to expand on that. People like me and you spend a lot of money on stuff like office furniture and tech equipment. I could see them really benefiting off that if they do things right.

Chokkavelu: My point, $3 billion market cap when we're talking about AMC (AMC 3.96%) with $30 billion. 

Frankel: I know you're normally the one asking the questions. I'm interested to know who's your zero-X leader.

Chokkavelu: I think we nailed it with Nikola (NKLA 7.23%), and  AMC, unless they can get that money quickly. But even something like Clover Health that we both like.

Frankel: Oh, it could, that's a very binary stock.

Chokkavelu: Yeah. Are there any other ones? Probably most of these could be.

Frankel: As much as I don't like to say it, I would have to say it's between Nikola and Virgin Galactic. I could see them running out of money before they really start turning serious revenue. I could see them having serious cash problems, especially if we have like, not a COVID recession where it was like we had a recession that lasted a couple of months. Like if the financial crisis happens again, and  investment just dries up, and things like that. I could see them running out of money. I could see them being a very economically sensitive business.

Chokkavelu: Yeah. Even something like GameStop (GME 6.16%), which now has good balance sheet strength. But if they get over their skis, and go aggressive into trying to really pivot the business, and use a lot of money to do that, and then you see a concomitant share price drop where they can't just keep raising funds at $250 a share or whatever -- yeah, that could be problematic.

Frankel: Yeah. Right now, all the ones said have spiked this year especially. Now after today, I guess I could put Virgin Galactic in that category. Their biggest advantage right now is being able to raise cheap capital. If that advantage goes away for a few of these companies, especially the pre-revenue companies like Nikola and Virgin Galactic, I can see that becoming a real problem.