In past years, the media and social media have highlighted so-called meme stocks repeatedly. However, this trend can be hazardous for individuals who need more financial literacy and are supposed to be responsible long-term investors. They may need proper knowledge to build a diversified portfolio and adhere to an investment plan.

Stock speculation is a short-term activity that resembles gambling more than investing. It is unsuitable for serious, long-term investors with goals requiring sustained investment strategies. Long-term objectives need to align with immediate investments.

The market can be exciting with meme stocks, NFTs, and cryptocurrencies, but avoiding investing in these volatile assets may be best. Here are three meme stocks that are speculative and not worth the risk.

Bed Bath & Beyond (BBBY)

While short-term speculators may find trading Bed Bath & Beyond (NASDAQ:BBBY) stock acceptable, the risks of holding the shares for the long term are too significant.

Its numerous issues, particularly its file for bankruptcy protection under Chapter 11, make it extremely dangerous for investments that last.

According to the corporation’s most recent Form 10-Q, it has a dismal track record of quarterly profitability and possesses long-term loans of $1.03 billion. As a result, it is not a matter of whether BBBY will lose value, but how much it will decline in 2023.

BBBY will shut down its stores, sell off its assets, and liquidate inventory following its Chapter 11 bankruptcy protection filing. There are no plans for BBBY to remain in business and recapitalize, and they expect creditors to receive equity for some or all of their claims.

Ultimately, the company will cease to exist after paying off its creditors, meaning there will be no “beyond” for BBBY.

BBBY did not decrease by a high double-digit percentage after the news; instead, it plummeted by 35.7%. The company’s stock is still selling for roughly 11 cents per share, but given the present state of affairs, it is challenging to be valued at even a single penny.

AMC Entertainment (AMC)

AMC Entertainment reported a surge in moviegoers, which is good news, but the company’s financial situation is unfavorable, and it’s actively striving to issue more AMC stock shares.

More than 3.6 million movie fans visited a theater in the United States throughout the previous weekends, which was a win for AMC Entertainment. in early April, but this shouldn’t overshadow the company’s financial struggles.

The business still owes a sizable amount of money from the previous year, which amounts to almost $4.95 billion, regardless of its current level of performance.

AMC Entertainment appears firmly committed to generating funds, even if it means augmenting the company’s substantial debt burden and growing the outstanding common shares.

In addition, despite being unprofitable, AMC Entertainment seems unhesitant about adding to its debt obligations. This was evidenced by the business’s private sale of $400 million in 12.75%-interest senior secured notes in Q4 of 2022.

AMC Entertainment’s actions may lead to adverse outcomes for the company and its stockholders. Therefore, it would be wise for those holding AMC stock to sell it now or for those who do not have it to steer clear of it.

Blackberry (BB)

BlackBerry (NYSE:BB), known for its iconic smartphones with physical keyboards, shifted its focus to emerging technology markets, such as 5G and cybersecurity, after the decline in popularity of its traditional phones.

Despite being considered a meme stock, BlackBerry, faces significant difficulties and losses. It has been almost ten years since it left the smartphone business, yet it still needs help.

The business just disclosed a financial loss of $495 million for the Q4 of 2022, down from an income of $144 million the year before. Earnings per share fell to -85 cents from a loss of 3 cents.

In 2022, the company recorded a loss of $734 million, down from a profit of $12 million in 2021.

BB stock, once a popular meme stock, has been in a downtrend despite sporadic upward movements. The stock has dropped by 36% over the preceding year and roughly 60% over five years.

Despite its efforts to focus on IoT and self-driving car software, the company is struggling to gain traction and has yet to reach its previous status.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.