Meme stocks have continued their roller coast ride as retail investors have been flocking to risky buys again. Bed Bath & Beyond (BBBY) has soared more than 280% since July and penny stock Zomedica (ZOM -2.64%) is up around 40%.

The danger of getting caught up in the hype is forgetting that these stocks have been down this road before, and it led to some significant losses for investors afterwards. If you bought these stocks over a year ago, back when meme stocks were at their peak, you could still be down more than half of your original investment.

1. Zomedica

In February 2021, shares of Zomedica were trading at well over $2 per share on several days, and even came close to reaching $3 at one point. Since then, it has been an epic decline for this veterinary company. As of Thursday, the stock was down to just $0.28 -- falling around 90% from the peak it hit in February 2021. The problem with Zomedica is that its business is largely unprofitable -- and it could remain that way for a long time.

The company reported its second-quarter earnings on Monday. Sales for the period ended June 30 totaled $4.2 million, up 51% on a pro forma basis compared to the prior-year period. A year ago, the company's revenue was just $16,000. But in October 2021, Zomedica acquired PulseVet, a company that uses shockwave therapy to treat animals, and that has been behind Zomedica's stronger numbers since then.

Zomedica's gross margin was incredibly high in Q2 at 71%, but the problem is that it will need a whole lot more growth to turn a profit. The company's selling, general, and administrative costs totaled $8.6 million for the period and were more than double its top line. The one positive for investors is that with $186.8 million in cash on hand, it's in strong enough shape to handle its present level of cash burn (over the past six months, Zomedica used up $6.5 million in its operating activities).

While the sales numbers look promising this quarter, that's not enough to make the stock a good buy. The road to profitability may be a long one, assuming Zomedica ever gets there. And growth investors may simply run out of patience, as there are better, less risky options out there to invest in.

2. Bed Bath & Beyond

Bed Bath & Beyond has become the leader of all meme stocks of late. Just this week, shares of the home furnishings retailer have been on a wild ride, soaring up to $30 on Wednesday due to a short squeeze only to fall back to under $20 the following day, after news that billionaire investor Ryan Cohen planned to sell his shares of the business.

This volatility can be a dangerous game for investors. While it can lead to some quick wins, it can also be catastrophic for those who end up buying at elevated prices. In February 2021, Bed Bath & Beyond hit a high of nearly $35 on the first day of the month. And days earlier, on Jan. 27, 2021, its shares hit as high as $53.90. If you'd bought the stock at either one of those peaks, you would have incurred significant losses.

Regardless of where Bed Bath & Beyond's stock ends up during this latest run of speculation, this remains an incredibly risky stock to own. The retail company's CEO has recently departed, and its future remains uncertain. Comparable store sales for the period ended May 28 were down 23% year over year. Meanwhile, the company has been incurring losses of more than $866 million over the past four quarters. And during that time, its operating cash flow has been a negative $337 million.

Retail investors getting caught up in the meme hype should remember how dangerous it can be to get caught holding the bag. Bed Bath & Beyond's poor fundamentals should bring the stock crashing back to reality sooner or later.