Bored and sometimes desperate during the pandemic, a new generation of investors banded together on social media to swap war stories — and sometimes, band together to make big bets. For better or for worse, these folks on Reddit and other social media platforms forever changed how Wall Street works.
The most prominent example of Reddit stocks gone wild was GameStop Corp. (ticker: GME), a firm that has become synonymous with the so-called meme stocks revolution after its meteoric rise in 2021. From trading desks at big investment banks to regulators like the U.S. Securities and Exchange Commission, everyone has learned that it can be perilous to ignore the often cheeky and occasionally ill-informed antics of traders who rely on social media for stock tips.
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The following eight stocks are all making big waves these days, for a variety of reasons. It should go without saying that Reddit stocks shouldn’t be traded on a whim and that it’s crucial to do your own independent research before buying or selling anything. But if you’re looking for ideas or just interested in what others think are hot trades in 2024, this list of trending Reddit stocks is worth a look:
— Alibaba Group Holding Ltd. (BABA)
— ChargePoint Holdings Inc. (CHPT)
— DraftKings Inc. (DKNG)
— Joby Aviation Inc. (JOBY)
— Riot Platforms Inc. (RIOT)
— SoFi Technologies Inc. (SOFI)
— Tesla Inc. (TSLA)
— Tilray Brands Inc. (TLRY)
Alibaba Group Holding Ltd. (BABA)
Back at the end of 2020, Asian e-commerce king Alibaba was riding high at around $300 a share. A host of problems since then, including the strangely low profile of its once-iconic CEO Jack Ma after a falling out with Chinese officials, have weighed on the stock and it now trades in the $70s. Obviously, a dramatic crash like that is cause for concern. But if you know anything about the meme stocks crowd, all they care about are big future moves regardless of past risks — and many on Reddit are taking out positions in the hope that Alibaba has a big comeback rally in store this year.
ChargePoint Holdings Inc. (CHPT)
In 2020, ChargePoint was caught up in the original meme stock mania as it quadrupled from about $10 a share to a short-lived high above $40. Nowadays, however, CHPT trades at a meager $2 or so per share after crashing and burning in the intervening years. This combination of prior success and a current single-digit share price makes CHPT a ripe target for meme stock investors who want a cheap stock pick
in the EV space. As an operator of charging stations, ChargePoint is currently unprofitable as it looks to scale up and serve the plug-in fleet of the future. If the long-term promise still pans out, $2 per share could be a bargain … at least, that’s what the Reddit bulls would have you believe if you can overlook the ugly plunge of more than 95% from its highs a few years back.
DraftKings Inc. (DKNG)
DraftKings is at the center of the online betting business that has been picking up steadily since a 2018 Supreme Court ruling overturned federal prohibitions on sportsbooks. The company is active in more than half of U.S. states, and as bettors continue to learn about new games and formats there is continued upside for DKNG if it plays its proverbial cards right. The stock has been volatile, like many meme stocks, but has more than doubled over the last year or so thanks to brisk growth and the hopes of consistent profitability in the near future. Reddit investors love to admit that their aggressive styles aren’t all that different from mildly informed gambling, so it should be no surprise that DKNG is a popular meme stock in 2024.
Joby Aviation Inc. (JOBY)
There have been plenty of volatile and potentially disruptive stocks that had their moment over the years, and Joby Aviation is cut from the same cloth as the high-octane 3D printing stocks or cloud computing firms. That’s because Joby is a startup banking on a big and dynamic idea — all-electric vertical take-off and landing (VTOL) aircraft, which can operate as taxis or short-distance aerial delivery vehicles. Ordering a flying Uber from your smartphone is too sexy an idea for many investors to pass up, so while JOBY has yet to move past its experimental phase, it remains a popular meme stock on Reddit. This could be a make-or-break year for the company, as it moves towards the final stage of its certification by the Federal Aviation Administration.
[Read: The History of Bitcoin, the First Cryptocurrency]
Riot Platforms Inc. (RIOT)
Riot is a cryptocurrency miner that was simply on fire in 2023. Sure, Bitcoin was up about 160% or so on the year. But RIOT stock surged more than twice that amount last year. Much like many investors watch specific energy stocks to play oil prices or miners to play gold prices, meme stock investors figured Riot Platforms could provide a similar supercharged way to play Bitcoin in 2023. The million-dollar questions for 2024, of course, aren’t just whether Bitcoin will continue to run but also whether RIOT will continue to outperform the asset it’s so dependent on.
SoFi Technologies Inc. (SOFI)
Midsized financial technology firm SoFi has had some ups and downs, and right now there’s a lot of buzz behind it that’s fueling the potential for big moves to the upside. Case in point: On Jan. 29, the stock surged a jaw-dropping 20% in a single session thanks to blowout fourth-quarter earnings. The company is not yet profitable, operating a digital portal for mortgages, student loans, investing and a host of other money-related services. Its long-term goal is to disrupt traditional leaders on Wall Street — and while it is volatile, the meme stock crowd seems to be very interested in what SoFi can do this year.
Tesla Inc. (TSLA)
Unlike some other stocks on this list, Tesla is very well known. But what makes Tesla a red-hot meme stock is not the fact that it’s potentially a hidden gem. Rather, it’s because it is so darn interesting to the Reddit crowd that they can’t stop talking about it. They’re not alone, either, as the electric vehicle leader regularly trades north of 100 million shares in a single session. There are a host of reasons for this, from the recent antics of CEO Elon Musk to a recent plunge in price that wiped out roughly $100 billion in market value since New Year’s Day. Will Tesla bounce back and orchestrate a meteoric rise? Is the stock set for continued declines? Whatever side you’re on, you’re sure to find plenty of lively debate on the topic all over social media.
Tilray Brands Inc. (TLRY)
There are a host of reasons Tilray is a popular stock these days with younger, aggressive investors. In 2018, it became the first major cannabis stock to trade on U.S. exchanges. And after a 2020 merger with Aphria, it is now one of the largest companies in both the medical marijuana and recreational cannabis industries. The firm also owns several craft breweries, including Red Hook and Shock Top. With its “good times” appeal, there’s plenty of reason for millennials and Gen Z to be drawn to TLRY. Of course, with the stock down to about $2 a share compared with its peak at around $150 back in 2018, that good times vibe may not necessarily be shared by many prior investors.
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8 Reddit Stocks Trending Now originally appeared on usnews.com
Update 02/01/24: This story was previously published at an earlier date and has been updated with new information.
