In this article, we discuss the 10 Reddit YOLO stocks that are losing ground. If you want to skip our detailed analysis of these stocks, go directly to the 5 Reddit YOLO Stocks That Are Losing Ground.
Retail investors have become an important market force in recent months, giving established stock market experts a run for their money by driving record rallies in equities that offer little in terms of basic fundamentals and are thus being shorted by investment firms with billions of dollars in capital. On the heels of research by investment bank Goldman Sachs that retail investors will pour over $400 billion into stocks this year, Marketplace Fairness revealed that most retail investors only started dabbling in stocks during 2020.
In January 2020, these retail investors accounted for just 17% of the total trades on the market, a number that jumped to over 25% within six months. The median age of these traders is just 31 and most of them use online applications like Robinhood for trading. These investors also frequent social media platforms like Reddit to discuss strategy, making Reddit forums a red-hot item that are monitored closely by big finance to keep abreast of latest developments. These investors favor growth firms that are acting as disruptors in their market sector for investments.
Some of the most popular stocks on Reddit presently include Tesla, Inc. (NASDAQ: TSLA), Uber Technologies, Inc. (NYSE: UBER), Cloudflare, Inc. (NYSE: NET), Apple Inc. (NASDAQ: AAPL), NIO Inc. (NYSE: NIO), ViacomCBS Inc. (NASDAQ: VIAC), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), among others. According to news agency Reuters, top retail-focused brokerages had a combined client asset value of more than $15 trillion at the beginning of this year.
Not all stocks favored by retail investors are trading at high prices. Some have even registered losses in recent weeks. However, these investors have truly transformed the world of finance. 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 July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). 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.
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Our Methodology
With this context in mind, here is our list of the 10 Reddit YOLO stocks that are losing ground. They were picked keeping in mind the hype around the companies on different Reddit forums, including WallStreetBets.
Only the stocks that have registered losses of over 4% during the last five days were selected for the final listing. The stocks are ranked according to their percentage losses which are mentioned below.
The analyst ratings of each firm are also discussed to provide readers with some more context for their investment decisions. The hedge fund sentiment around the stocks was gauged using data of 873 hedge funds tracked by Insider Monkey.
Reddit YOLO Stocks That Are Losing Ground
10. CareDx, Inc (NASDAQ: CDNA)
Number of Hedge Fund Holders: 28
Percentage Loss in Past Five Days: 6.32%
CareDx, Inc (NASDAQ: CDNA) is placed tenth on our list of 10 Reddit YOLO stocks that are losing ground. The firm operates from California and markets diagnostic solutions for transplant patients.
On July 30, investment advisory Piper Sandler maintained an Overweight rating on CareDx, Inc (NASDAQ: CDNA) stock and raised the price target to $110 from $100, noting the quarterly results of the firm showed it was continuing to execute.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm ARK Investment Management is a leading shareholder in CareDx, Inc (NASDAQ: CDNA) with 4.5 million shares worth more than $417 million.
Unlike Tesla, Inc. (NASDAQ: TSLA), Uber Technologies, Inc. (NYSE: UBER), Cloudflare, Inc. (NYSE: NET), Apple Inc. (NASDAQ: AAPL), NIO Inc. (NYSE: NIO), ViacomCBS Inc. (NASDAQ: VIAC), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), CareDx, Inc (NASDAQ: CDNA) is one of the Reddit YOLO stocks that are losing ground.
In its Q1 2021 investor letter, Alger, an asset management firm, highlighted a few stocks and CareDx, Inc (NASDAQ: CDNA) was one of them. Here is what the fund said:
“CareDx, Inc. was among the top contributors to performance during the second quarter. CareDx provides high-value and differentiated diagnostic surveillance products for patients receiving organ or stem cell transplants. Its diagnostic tests can increase the chances of successful transplants by facilitating a better match between donors and recipients of stem cells and organs. In post transplant diagnostics, CareDx offers tests for monitoring signs of rejection in kidney and heart transplant patients. Shares of CareDx outperformed due to stronger-than-expected first quarter testing volumes, revenues and earnings.
Strong testing volumes were driven by continued adoption of CareDx’s heart and kidney rejection tests. In addition, a new reimbursement policy by Medicare will allow CareDx’s lung transplant rejection test to be commercialized early next year, which is sooner than previously expected.”
9. Sprinklr, Inc. (NYSE: CXM)
Number of Hedge Fund Holders: 16
Percentage Loss in Past Five Days: 4.89%
Sprinklr, Inc. (NYSE: CXM) is ranked ninth on our list of 10 Reddit YOLO stocks that are losing ground. The firm markets application software services and is headquartered in New York.
On July 19, investment advisory JPMorgan initiated coverage of Sprinklr, Inc. (NYSE: CXM) stock with a Neutral rating and a price target of $21. Mark Murphy, an analyst at the firm, issued the ratings update.
At the end of the second quarter of 2021, 16 hedge funds in the database of Insider Monkey held stakes worth $50 million in Sprinklr, Inc. (NYSE: CXM).
Unlike Tesla, Inc. (NASDAQ: TSLA), Uber Technologies, Inc. (NYSE: UBER), Cloudflare, Inc. (NYSE: NET), Apple Inc. (NASDAQ: AAPL), NIO Inc. (NYSE: NIO), ViacomCBS Inc. (NASDAQ: VIAC), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), Sprinklr, Inc. (NYSE: CXM) is one of the Reddit YOLO stocks that are losing ground.
8. Lucid Group, Inc. (NASDAQ: LCID)
Number of Hedge Fund Holders: N/A
Percentage Loss in Past Five Days: 6.14%
Lucid Group, Inc. (NASDAQ: LCID) is a California-based technology and automotive company. It is placed eighth on our list of 10 Reddit YOLO stocks that are losing ground.
On August 25, Lucid Group, Inc. (NASDAQ: LCID) announced that it would soon be launching two new Dream Edition EV models that are optimized for speed and acceleration while delivering impressive range on a single charge.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Athanor Capital is a leading shareholder in Lucid Group, Inc. (NASDAQ: LCID) with 4.2 million shares worth more than $123 million.
Unlike Tesla, Inc. (NASDAQ: TSLA), Uber Technologies, Inc. (NYSE: UBER), Cloudflare, Inc. (NYSE: NET), Apple Inc. (NASDAQ: AAPL), NIO Inc. (NYSE: NIO), ViacomCBS Inc. (NASDAQ: VIAC), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), Lucid Group, Inc. (NASDAQ: LCID) is one of the Reddit YOLO stocks that are losing ground.
7. Urban Outfitters, Inc. (NASDAQ: URBN)
Number of Hedge Fund Holders: 28
Percentage Loss in Past Five Days: 6.8%
Urban Outfitters, Inc. (NASDAQ: URBN) is a Pennsylvania-based retailer of general consumer products. It is ranked seventh on our list of 10 Reddit YOLO stocks that are losing ground.
On August 25, investment advisory BMO Capital reiterated a Market Perform rating on Urban Outfitters, Inc. (NASDAQ: URBN) stock and raised the price target to $37 from $35, noting that the quarterly results of the firm showed it had meaningful gross margin strength.
At the end of the second quarter of 2021, 28 hedge funds in the database of Insider Monkey held stakes worth $233 million in Urban Outfitters, Inc. (NASDAQ: URBN), up from 23 in the previous quarter worth $140 million.
Unlike Tesla, Inc. (NASDAQ: TSLA), Uber Technologies, Inc. (NYSE: UBER), Cloudflare, Inc. (NYSE: NET), Apple Inc. (NASDAQ: AAPL), NIO Inc. (NYSE: NIO), ViacomCBS Inc. (NASDAQ: VIAC), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), Urban Outfitters, Inc. (NASDAQ: URBN) is one of the Reddit YOLO stocks that are losing ground.
6. Flora Growth Corp. (NASDAQ: FLGC)
Number of Hedge Fund Holders: N/A
Percentage Loss in Past Five Days: 7.5%
Flora Growth Corp. (NASDAQ: FLGC) is placed sixth on our list of 10 Reddit YOLO stocks that are losing ground. The firm makes and sells cannabis products and is headquartered in Canada.
On August 20, investment advisory MKM Partners maintained a Buy rating on Flora Growth Corp. (NASDAQ: FLGC) stock and raised the price target to $11.50 from $6, noting that the first-half results and organic guidance marked a “sharp acceleration” in business for the firm.
In earnings results for the first half of the year, posted on August 19, Flora Growth Corp. (NASDAQ: FLGC) reported a revenue of more than $2 million, up from $100,000 over the same period last year. The gross profit was 60% and the cash balance was 19 million.
Unlike Tesla, Inc. (NASDAQ: TSLA), Uber Technologies, Inc. (NYSE: UBER), Cloudflare, Inc. (NYSE: NET), Apple Inc. (NASDAQ: AAPL), NIO Inc. (NYSE: NIO), ViacomCBS Inc. (NASDAQ: VIAC), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), Flora Growth Corp. (NASDAQ: FLGC) is one of the Reddit YOLO stocks that are losing ground.
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Disclosure. None. 10 Reddit YOLO Stocks That Are Losing Ground is originally published on Insider Monkey.
