TSLA Has Become a Meme Stock, Top Investor Says

Tesla (TSLA) has become a meme stock, Hillary Kramer, the CIO of Kramer Capital Research said during a segment on meme stocks on Schwab Network yesterday.

Appearing opposite Kramer, Lee Munson, the President and CIO of Portfolio Wealth Advisors, panned GameStop (GME) and recommended DoorDash (DASH) for some risk-tolerant investors and speculators.

Kramer: TSLA Has Entered Meme Territory

Since Elon Musk’s automaker has acquired many lovers and haters, while TSLA stock is very popular with retail investors it’s “absolutely a meme stock,” Kramer stated. The shares’ high volatility also makes it a good fit for this category, she believes.

Munson Tells Everyone to Avoid GME

GME is poised “to incinerate $4 billion on Bitcoin or trading cards,” Munson predicted. Further, it is suffering from “declining earnings and declining everything,” he said. Instead of buying GME stock, anyone who wants to buy Bitcoin or trading cards should just purchase those items, he said.

DoorDash Is a Speculative Buy, Munson Says

DASH has an “intuitive, integrated” app and gives consumers a way to hire people to do errands for $10 per hour, Munson said. If DASH becomes dominant in the delivery category, its market cap could reach $200 billion, up from $81 billion currently, the investor believes.

And although its price-earnings ratio is “sky-high,” its bottom line should jump significantly soon, he said. Also importantly, “every trader” is currently following the name, Munson reported.

While we acknowledge the potential of TSLA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as TSLA but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.