In this article we discuss the 10 popular stocks Reddit’s WallStreetBets is talking about today. If you want to skip our detailed analysis of these companies, go directly to the 5 Popular Stocks Reddit’s WallStreetBets is Talking About Today.
The meme stock rallies that shook the market at the turn of the year and led to regulatory probes in the United States appear to have returned to haunt financial experts in the past few days. If previous trends are anything to go by, the finance world should expect retail investors, who use internet platforms like Reddit and Twitter, as well as trading applications like Robinhood, to group themselves and collectively bet against big finance positions on certain stocks in the coming days.
One of the most popular places where these retail investors exchange ideas is the Reddit community named WallStreetBets. The forum has more than 10 million members who share thousands of posts about the market each day. Earlier this week, the share price of GameStop Corp. (NYSE: GME), the video game retailer at the center of the meme stock rally a few months ago, jumped more than 13% as Reddit speculation rose that GameStop Corp. (NYSE: GME) would be entering the non-fungible token market.
Another popular stock on the internet platform is MicroVision, Inc. (NASDAQ: MVIS), the technology company most famous for marketing lidar sensors used in autonomous vehicles. In late April, MicroVision, Inc. (NASDAQ: MVIS) stock jumped more than 26% as WallStreetBets members highlighted the company in their forums in a short squeeze push. These retail investors usually favor companies with high short interest. About 20% of the shares of MicroVision, Inc. (NASDAQ: MVIS) were held short last month.
In the past few days, the Redditors have also been interested in BlackBerry Limited (NYSE: BB), the Canadian software company that provides encryption and security services. BlackBerry Limited (NYSE: BB) is one of the most undervalued technology stocks on the market considering the upside potential it has as a leader in cybersecurity innovation. On May 17, BlackBerry Limited (NYSE: BB) announced new prevention-first and artificial intelligence-driven products related to endpoint and network security capabilities.
Amid inflation fears and the sudden drop in prices of tech-related growth stocks, the market can ill-afford another GameStop Corp. (NYSE: GME) saga. However, in the absence of strong regulation around tech-enabled trading, retail investors are expected to continue to drive market dynamics in the coming months. These retail traders do not usually see eye to eye with established financial entities like hedge funds, and usually favor taking strong positions on penny stocks to drive up their value. Tech-related disruption, that is reforming whole industries, has entered finance too.
The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Image by Sergei Tokmakov, Esq. from Pixabay
With this context in mind, here is our list of the 10 popular stocks Reddit’s WallStreetBets is talking about today.
Popular Stocks Reddit’s WallStreetBets Is Talking About
10. Sundial Growers Inc. (NASDAQ: SNDL)
Number of Hedge Fund Holders: 7
Sundial Growers Inc. (NASDAQ: SNDL) is a Canada-based company that makes cannabis-related products. It was founded in 2006 and is placed tenth on our list of 10 popular stocks Reddit’s WallStreetBets is talking about today. Sundial stock has returned over 58% to investors year-to-date. Some of the products the firm develops and markets include flower, pre-rolls, and vapes, among others. These are sold under brand names such as Top Leaf, Sundial Cannabis, Palmetto, and Grasslands.
Sundial Growers Inc. (NASDAQ: SNDL) posted quarterly results on May 11, reporting net losses of over C$134 million and a revenue of over C$9.8 million. The company said it sold close to 4,000 kilograms of cannabis in the first three months of 2021.
At the end of the first quarter of 2021, 7 hedge funds in the database of Insider Monkey held stakes worth $18 million in Sundial Growers Inc. (NASDAQ: SNDL), up from 2 the preceding quarter worth $2 million.
Just like GameStop Corp. (NYSE: GME), MicroVision, Inc. (NASDAQ: MVIS), and BlackBerry Limited (NYSE: BB), Sundial Growers Inc. (NASDAQ: SNDL) is one of the most popular stocks Reddit’s WallStreetBets is talking about today.
9. Academy Sports and Outdoors, Inc. (NASDAQ: ASO)
Number of Hedge Fund Holders: 37
Academy Sports and Outdoors, Inc. (NASDAQ: ASO) is a Texas-based sporting goods company that operates retail stories. It was founded in 1938 and is ranked ninth on our list of 10 popular stocks Reddit’s WallStreetBets is talking about today. Academy stock has offered investors returns exceeding 72% in the past twelve months. The company operates more than 250 sports retail stores in 16 states across the United States. In addition to sporting goods, the company also sells outdoor recreational products.
On March 31, investment advisory UBS maintained a Buy rating on Academy Sports and Outdoors, Inc. (NASDAQ: ASO) stock with a revised price target of $32 from $26 on the back of strong quarterly earnings for the firm in the fourth quarter of 2020.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Samlyn Capital is a leading shareholder in Academy Sports and Outdoors, Inc. (NASDAQ: ASO) with 2.8 million shares worth more than $77 million.
Just like GameStop Corp. (NYSE: GME), MicroVision, Inc. (NASDAQ: MVIS), and BlackBerry Limited (NYSE: BB), Academy Sports and Outdoors, Inc. (NASDAQ: ASO) is one of the most popular stocks Reddit’s WallStreetBets is talking about today.
8. Roblox Corporation (NYSE: RBLX)
Number of Hedge Fund Holders: 46
Roblox Corporation (NYSE: RBLX) is a California-based video game developer founded in 2004. It is placed eighth on our list of 10 popular stocks Reddit’s WallStreetBets is talking about today. Roblox stock has offered investors more than 23% in returns over the past month. Some of the products offered by the company include Roblox Client, Roblox Studio, and Roblox Cloud, among others. It has operations in Canada, Europe, and the Asia-Pacific in addition to the United States.
On May 11, Roblox Corporation (NYSE: RBLX) stock soared more than 17% as market experts praised the strong user growth numbers of the firm. Investment bank Morgan Stanley gave the company stock a Street High price target of $87, implying 16% upside potential.
At the end of the first quarter of 2021, 46 hedge funds in the database of Insider Monkey held stakes worth $3.3 billion in Roblox Corporation (NYSE: RBLX).
7. Virgin Galactic Holdings, Inc. (NYSE: SPCE)
Number of Hedge Fund Holders: 17
Virgin Galactic Holdings, Inc. (NYSE: SPCE) is a California-based spaceflight company founded in 2004. It is ranked seventh on our list of 10 popular stocks Reddit’s WallStreetBets is talking about today. The firm is primarily focused on developing commercial spacecraft for space tourists. It also offers other services related to spaceflight vehicles. Virgin stock has returned more than 56% to investors over the past year. The company manufactures space and air vehicles for travel in-house.
On May 21, investment advisory UBS upgraded Virgin Galactic Holdings, Inc. (NYSE: SPCE) stock to Buy from Neutral with a price target of $36, implying 80% upside potential. The share price of the space firm jumped close to 4% after the ratings update.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Virgin Galactic Holdings, Inc. (NYSE: SPCE) with 2.8 million shares worth more than $86 million.
Just like GameStop Corp. (NYSE: GME), MicroVision, Inc. (NASDAQ: MVIS), and BlackBerry Limited (NYSE: BB), Virgin Galactic Holdings, Inc. (NYSE: SPCE) is one of the most popular stocks Reddit’s WallStreetBets is talking about today.
6. Tesla, Inc. (NASDAQ: TSLA)
Number of Hedge Fund Holders: 62
Tesla, Inc. (NASDAQ: TSLA) is a California-based electric vehicle maker with stakes in several businesses, including clean energy. It was founded in 2003 and is placed sixth on our list of 10 popular stocks Reddit’s WallStreetBets is talking about today. Tesla stock has returned more than 276% to investors over the course of the past year. Tesla has had an eventful past few weeks, with stock falling amid market speculation around supply constraints and falling demand for electric vehicles in China.
On May 24, news media reported that Tesla, Inc. (NASDAQ: TSLA) was accelerating the delivery process Model S Plaid car, updating a new order timeline to June. The company will hold an event in early June to promote the new offering.
At the end of the first quarter of 2021, 62 hedge funds in the database of Insider Monkey held stakes worth $10 billion in Tesla, Inc. (NASDAQ: TSLA), down from 68 in the previous quarter worth $12 billion.
Here is what Baron Partners Fund has to say about Tesla, Inc. (NASDAQ: TSLA) in its Q1 2021 investor letter:
“Tesla, Inc. designs, manufactures, and sells fully electric vehicles, solar products, energy storage solutions, and battery cells. The stock fell during the quarter as a result of general market dynamics and a potential production slowdown due to parts shortages. A refreshed S/X and China Model Y ramp could also have a negative impact on margins in early 2021. We anticipate strong growth and improved margins driven by new production capacity, manufacturing efficiencies, localization of its manufacturing and supply chain, and maturation of Tesla’s full self-driving technology.”
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Disclosure: None. 10 Popular Stocks Reddit’s WallStreetBets is Talking About Today is originally published on Insider Monkey.
