WallStreetBets posters are buzzing about these eight Reddit stocks.
Social media platform Reddit has become an unlikely hub for retail traders. Reddit’s WallStreetBets community has repeatedly orchestrated buying campaigns for some of the market’s most heavily shorted stocks, triggering short squeezes, producing viral social media memes and creating unprecedented volatility in a handful of “stonks.” The trading action has been so extreme that it has even prompted a congressional hearing. Month after month, top trending Reddit stocks are among the best performers in the market. Here are the eight Reddit stocks generating the most WallStreetBets buzz in August, according to Swaggy Stocks.
Robinhood Markets Inc. (ticker: HOOD)
Trading app Robinhood Markets has transitioned from being enemy No. 1 among meme stock traders to being by far the most popular Reddit stock in the market. Retail traders blasted Robinhood in January for placing temporary buying restrictions on GameStop Corp. (GME) and other meme stocks. However, after completing its highly anticipated initial public offering July 28 at $38 per share, retail stock traders sent the stock soaring as high as $85 in its first week of trading. Robinhood was recently getting nearly five times as many mentions on WallStreetBets as any other stock ticker.
Moderna Inc. (MRNA)
Of all the stocks that benefited from the COVID-19 pandemic, vaccine maker Moderna may be the biggest winner. The stock is up more than 2,000% since the beginning of 2020, including a doubling in the past month alone. Reddit may be playing a role in the recent gains, considering the buzz Moderna is getting on WallStreetBets. Growing concerns about the COVID-19 Delta variant and the need for booster vaccinations are good news for Moderna. In addition, Moderna was recently granted fast-track designation by the U.S. Food and Drug Administration for its respiratory syncytial virus vaccine.
Advanced Micro Devices Inc. (AMD)
Advanced Micro Devices is the quintessential growth stock, and Reddit traders are taking notice. AMD reported 65% growth in computing and graphics revenue in the second quarter and said its market share in the client processor market has increased for five consecutive quarters. In particular, AMD is gaining market share from central processing unit leader Intel Corp. (INTC) In fact, AMD’s share of the CPU market has risen from 35% to 44.1% in the past year, according to PassMark Software. Those impressive growth numbers have helped drive AMD shares up about 1,600% in the past five years.
SoFi Technologies Inc. (SOFI)
SoFi is a financial technology company that specializes in student, personal and home loans, along with investing and money management. It is also backed by influential venture capitalist Chamath Palihapitiya. SoFi shares dropped nearly 20% in July after going public via a special purpose acquisition company June 1. One factor weighing on SoFi may be its lockup expiration June 20, which allowed early investors to sell their shares of stock. So far, SoFi is off to a hot start to August, and bullish sentiment on Reddit suggests retail traders see the July dip as a buying opportunity.
Tesla Inc. (TSLA)
Electric vehicle stock Tesla recently got a boost when the company reported more than 200,000 vehicle sales and $1 billion in net income for the first time ever in the second quarter. Tesla also said it is on schedule to begin producing its first Model Y vehicles in new factories in Berlin and Austin, Texas, by the end of 2021. Tesla critics point out a major wave of new EV competition on the horizon and the stock’s steep valuation premium compared to legacy U.S. automaker stocks. Reddit traders aren’t deterred and are still buzzing about Tesla.
Etsy Inc. (ETSY)
Etsy was unquestionably one of the biggest winners during the social distancing period, and its stock price is up about 300% since the beginning of 2020. However, Wall Street was disappointed by the company’s new guidance for the second half of 2021. At first glance, Etsy’s 23.4% year-over-year revenue growth in the second quarter is impressive, but it is a sharp deceleration from the revenue growth of 100% or more in each of the past four quarters. For now, Reddit traders appear to be buying the 6% dip in Etsy stock following its earnings report and updated guidance.
Microvision Inc. (MVIS)
Microvision is developing a lidar sensor for autonomous vehicles and has been a WallStreetBets favorite for several months.The company’s stock has gone on a huge run in the past year and a half, vaulting from under 20 cents per share in early 2020 to as high as $28 in April 2021. Microvision shares dropped nearly 18% in July before jumping 13% on Aug. 5 thanks to second-quarter earnings. Microvision is such an early stage company that it reported just $746,000 in revenue for the quarter, but Reddit’s market watchers seems to have high hopes for the volatile stock.
Fastly Inc. (FSLY)
Edge computing stock Fastly has lost most of its market capitalization so far in 2021. On Aug. 4, Fastly reported just 14% revenue growth in the second quarter, down from the 34% growth it reported in the first quarter. Fastly’s third-quarter revenue guidance of $82 million to $85 million also fell well short of analyst estimates of $98 million. Fastly’s 2021 momentum is clearly in the wrong direction, but Reddit is optimistic about a comeback. At about $41 per share as of the Aug. 6 close, the stock is still way up from its $16 initial public offering price in 2019.
Eight top trending Reddit stocks right now:
— Robinhood Markets Inc. (HOOD)
— Moderna Inc. (MRNA)
— Advanced Micro Devices Inc. (AMD)
— SoFi Technologies Inc. (SOFI)
— Tesla Inc. (TSLA)
— Etsy Inc. (ETSY)
— Microvision Inc. (MVIS)
— Fastly Inc. (FSLY)
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8 Latest Reddit Stocks Trending in August originally appeared on usnews.com
