The meme stock frenzy blew the world away this year but WallStreetBets stocks (WSB), have soared in value solely based on investor sentiment. We think that popular WallStreetBets stocks Lucid, Carnival (NYSE:] (CCL), Peloton(PTON), C3.ai and AI are better to avoid now as they appear overvalued with bleak growth prospects. Read on, let’s discuss.The Reddit community, aka the WallStreetBets (WSB), is known for taking bets on heavily shorted companies and squeezing out short-selling institutional investors. You can find out more about the process. GameStop Corp . (NYSE:) and AMC Entertainment (NYSE:) Holdings, Inc.’s (AMC) share prices have skyrocketed this year fits perfectly with Redditors’ motto: “To the moon.” According to Ortex data, short-sellers have gained $1.10 billion on their bets against AMC since December, and GME short-sellers have made $330 million since the start of the month.

Many stocks that were discussed in the forum did not offer strong fundamentals or high growth potential. Rather, WSBs usually make bets on heavily shorted companies, and their share prices surge based on investors’ optimism. Bets placed on stocks with poor fundamentals or low growth prospects could prove to be very risky. Stocks or “stonks” (as they are referred to on the WSB platform) have often fallen massively intraday, spelling significant losses by retail investors.

Given this backdrop, we think it could be wise to avoid WSBs stocks Lucid Group, Inc. (LCID), Carnival Corporation & plc (CCL), Peloton Interactive, Inc. (NASDAQ:) and C3.ai, Inc. (AI). They look expensive at the current price level.

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