The term "meme stocks" entered popular parlance during the pandemic when retail investors gathered together on some social media sites to drive certain stock prices through the roof. The pitfalls of such a scheme are that prices can become unsustainably high, and when they fall, many individual investors can get hit with staggering losses.

But not all meme stocks are bad investment choices. Some of the ones that looked risky a few years ago are demonstrating momentum and are on their way toward top-stock status. (NYSE: CCL)(NYSE: CUK), Lemonade (NYSE: LMND), and SoFi Technologies (NASDAQ: SOFI) all have massive long-term potential.

Carnival became a huge story in 2020 when operations essentially ceased as cruises were on hold. Carnival has enjoyed reliable growth and profits for years as the largest cruise operator in the world, so its predicament commanded rapt attention.

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Source Fool.com