In this article, we discuss 10 WallStreetBets stocks that are gaining in August. If you want to see more stocks in this selection, check out 5 WallStreetBets Stocks Gaining in August.
Retail investors have remained resilient despite severe market volatility, broad equity sell-offs, crushing inflation, and recession threats. A July 2022 survey by eToro suggests that two-thirds of the US retail investors did not participate in the stock market sell-off despite extreme turbulence. Retail investors seem adamant to stay afoot and participate in trading, and they appear to be focusing on long-term investment strategies and financial security.
Vanda Research said on May 25 that retail investors are diving into the stock market at a pace similar to the meme stock frenzy of 2021, despite the returns on retail investments being at multi-year lows due to broader equity sell-offs and rampant interest rate hikes. Retail traders invested a total of $76 billion in the stock market during the three months ending May 24, which equals $1.3 billion per day on average.
Reddit’s WallStreetBets community is perhaps the largest investing forum on the platform, where retail investors discuss their trades and exchange stock market strategies. WallStreetBets has given rise to multiple meme stocks, and the strength of the retail investors was fully comprehended by Wall Street in 2021, when Redditors poured into GameStop Corp. (NYSE:GME) amid short squeeze warnings and elite hedge funds lost billions as a result.
Some of the WallStreetBets stocks gaining in August include Carvana Co. (NYSE:CVNA), Bed Bath & Beyond Inc. (NASDAQ:BBBY), and The Walt Disney Company (NYSE:DIS).
Photo by Annie Spratt on Unsplash
Our Methodology
We scoured Reddit WallStreetBets forum, selecting the stocks that have reaped share price gains for retail investors in the last week. We have mentioned the share price appreciation in the last month as of August 12 for all securities.
The list is ranked according to the 1-month share price gains, from smallest to largest.
WallStreetBets Stocks Gaining in August
10. Veru Inc. (NASDAQ:VERU)
Number of Hedge Fund Holders: 9
Share Price Gain in the Last Month as of August 12: 19.70%
Veru Inc. (NASDAQ:VERU) is a Florida-based oncology biopharmaceutical company that develops medicines for managing cancers. On August 11, the stock gained 20.4% as investors overlooked the company’s Q2 earnings and revenue miss, and instead focused on the future upside from potential emergency use approvals for its COVID-19 treatment, Sabizabulin. An emergency use for Sabizabulin would be a tailwind for Veru Inc. (NASDAQ:VERU). The stock has climbed about 20% in the last month as of August 12.
Cantor Fitzgerald analyst Brandon Folkes on August 11 raised the price target on Veru Inc. (NASDAQ:VERU) to $30 from $24 and kept an Overweight rating on the shares after the company reported June quarter results. The analyst told investors that the price target increase was prompted by the probability of success of Veru Inc. (NASDAQ:VERU)’s EUA of Sabizabulin for the treatment of hospitalized COVID-19 patients. He has been conservative about the potential for any smaller company to achieve a COVID EUA approval in the United States, despite what he sees as robust data from Veru Inc. (NASDAQ:VERU).
According to Insider Monkey’s data, 9 hedge funds reported owning stakes in Veru Inc. (NASDAQ:VERU) at the end of Q1 2022, compared to 8 funds in the last quarter. Joseph Edelman’s Perceptive Advisors is the leading position holder in the company, with 4.3 million shares worth $21 million.
In addition to Carvana Co. (NYSE:CVNA), Bed Bath & Beyond Inc. (NASDAQ:BBBY), and The Walt Disney Company (NYSE:DIS), the WallStreetBets community is actively piling into Veru Inc. (NASDAQ:VERU).
9. Alpha and Omega Semiconductor Limited (NASDAQ:AOSL)
Number of Hedge Fund Holders: 18
Share Price Gain in the Last Month as of August 12: 30.34%
Alpha and Omega Semiconductor Limited (NASDAQ:AOSL) was incorporated in 2000 and is headquartered in Sunnyvale, California. The company designs and develops semiconductor products for computing, consumer electronics, communication, and industrial end-markets in Hong Kong, China, South Korea, the United States, and internationally. On August 11, the stock climbed 10% on the back of FQ4 results that exceeded Wall Street consensus. Alpha and Omega Semiconductor Limited (NASDAQ:AOSL) reported an EPS of $0.95, beating estimates by $0.09. The revenue of $193.96 million, up 9.4% year over year, outperformed market consensus by $3.96 million. In FQ1 2023, the company expects revenue to be $210 million, plus or minus $3 million. Alpha and Omega Semiconductor Limited (NASDAQ:AOSL) is one of the stocks leading gains on WallStreetBets in August.
Benchmark analyst David Williams on August 11 maintained a Buy rating on Alpha and Omega Semiconductor Limited (NASDAQ:AOSL) but lowered the price target on the shares to $60 from $70. The company is executing well with surprising resilience despite the worsening consumer backdrop where it has significant exposure, and the analyst remains convinced about the longer-term growth story and ongoing fundamental improvements at Alpha and Omega Semiconductor Limited (NASDAQ:AOSL). He views the quarter’s performance and guidance as evidence of the optimal positioning of Alpha and Omega Semiconductor Limited (NASDAQ:AOSL)’s products and its manufacturing scalability.
According to Insider Monkey’s data, 18 hedge funds were bullish on Alpha and Omega Semiconductor Limited (NASDAQ:AOSL) at the end of Q1 2022, compared to 21 funds in the prior quarter. Jim Simons’ Renaissance Technologies is the largest stakeholder of the company, with 345,700 shares valued at about $19 million.
8. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 113
Share Price Gain in the Last Month as of August 12: 30.80%
The Walt Disney Company (NYSE:DIS) is an American multinational mass media and entertainment conglomerate. The Walt Disney Company (NYSE:DIS) has been trending among the WallStreetBets community recently, as Redditors load up on gains. The stock has climbed about 31% in the last month as of August 12. The company posted its Q2 2022 results on August 10, reporting earnings per share of $1.09 and a revenue of $21.5 billion, outperforming Wall Street consensus by $0.10 and $490 million, respectively.
On August 11, Goldman Sachs analyst Brett Feldman raised the price target on The Walt Disney Company (NYSE:DIS) to $140 from $130 and maintained a Buy rating on the shares after the company’s “across the board financial beat” in FQ3, which was supported by peak Parks profitability that sufficiently offset higher losses in DTC. Disney+ net ads of 14.4 million reflect a “material beat” and the analyst expects an optimistic response to The Walt Disney Company (NYSE:DIS)’s revised FY24 Disney+ subscriber ambitions and its price increases across various streaming services in the United States and Canada.
Among the hedge funds tracked by Insider Monkey, 113 funds were bullish on The Walt Disney Company (NYSE:DIS) at the end of March 2022, up from 111 funds in the prior quarter. David Goel and Paul Ferri’s Matrix Capital Management is the largest shareholder of the company, with 6.33 million shares worth $868.2 million.
Here is what Oakmark Fund has to say about The Walt Disney Company (NYSE:DIS) in its Q2 2022 investor letter:
“Disney (NYSE:DIS) is one of the most beloved consumer companies in the world. Its media business has a rich library of intellectual property, which provides a powerful engine for creating new content across the Disney, Pixar, Marvel, and Star Wars brands. This content also contributes to the success of Disney’s theme parks, which generated nearly half the company’s earnings and grew more than 10% annually in the decade prior to the pandemic. Shares have fallen nearly 50% over the past year as investors worried about the company’s ability to transition its media business to a direct-to-consumer streaming world. This transition has required management to make investments in its Disney+ streaming service that are depressing profitability today. However, we believe these investments will ultimately produce attractive returns as Disney+ continues to grow subscribers and increase pricing over time. As a result, we were able to purchase shares at a substantial discount to our estimate of intrinsic value.”
7. Roblox Corporation (NYSE:RBLX)
Number of Hedge Fund Holders: 40
Share Price Gain in the Last Month as of August 12: 37.94%
Roblox Corporation (NYSE:RBLX) is a California-based company that operates an online entertainment platform. On August 9, Roblox Corporation (NYSE:RBLX) reported earnings for the second quarter of 2022. The company announced a loss per share of $0.30, missing market consensus by $0.04. The Q2 revenue also dropped 3.84% year over year to roughly $640 million, but it exceeded analysts’ predictions by $13.68 million. Roblox Corporation (NYSE:RBLX) is popular among Redditors these days, and the stock has gained about 38% in the last month as of August 12.
On August 12, Deutsche Bank analyst Benjamin Black raised the price target on Roblox Corporation (NYSE:RBLX) to $52 from $45 and kept a Buy rating on the shares. The Q2 macro setup for Roblox Corporation (NYSE:RBLX) was not easy given how much the shares had gained since the end of May, but despite the “muted” stock reaction, the underlying fundamentals and management’s comments from the earnings call gave him incremental confidence in the topline trajectory, the analyst told investors.
According to Insider Monkey’s Q1 data, 40 hedge funds were long Roblox Corporation (NYSE:RBLX), down from 61 funds in the prior quarter. Cathie Wood’s ARK Investment Management held the leading stake in the company, with more than 6 million shares worth $281.7 million.
Here is what Tao Value has to say about Roblox Corporation (NYSE:RBLX) in its Q4 2021 investor letter:
“Roblox (RBLX) got significant more attention from both institutional & retail investors after Facebook announced to rename itself as Meta Platforms. I believe the price appreciation is largely attributed to the increased attention. On the business side, Roblox rolled out a few successful music events and also partnered with Netflix on testing long-form media consumption in the virtual world. Apple in its iOS 14.5 rolled out an impactful change for the digital advertising landscape by requiring all apps to ask users to “opt in”.
6. Plug Power Inc. (NASDAQ:PLUG)
Number of Hedge Fund Holders: 33
Share Price Gain in the Last Month as of August 12: 61.86%
Plug Power Inc. (NASDAQ:PLUG) is a New York-based provider of clean hydrogen and fuel cell solutions for supply chain applications, electric vehicles, and the stationary power market in North America and internationally. The company reported a bigger than forecasted Q2 loss and the revenue also came in below Wall Street consensus, while Plug Power Inc. (NASDAQ:PLUG) reiterated full-year sales guidance. Plug Power Inc. (NASDAQ:PLUG) also issued in-line guidance for FY 2022 revenues of $900 million to $925 million, versus a $915 million consensus.
Wells Fargo analyst Michael Blum on August 11 raised the price target on Plug Power Inc. (NASDAQ:PLUG) to $29 from $19 and reaffirmed an Equal Weight rating on the shares. The analyst observed that Plug Power Inc. (NASDAQ:PLUG) announced “light” Q2 earnings while maintaining short-term and long-term guidance goals, adding that Plug Power Inc. (NASDAQ:PLUG) quickened its timeline for profitability to 2024 from 2025 due to the proposed Inflation Reduction Act.
According to Insider Monkey’s data, 33 hedge funds were bullish on Plug Power Inc. (NASDAQ:PLUG) at the end of Q1 2022, up from 23 funds in the earlier quarter. D E Shaw is a prominent shareholder of the company, with 5.25 million shares worth $150.2 million.
Like Carvana Co. (NYSE:CVNA), Bed Bath & Beyond Inc. (NASDAQ:BBBY), and The Walt Disney Company (NYSE:DIS), Plug Power Inc. (NASDAQ:PLUG) is one of the WallStreetBets stocks that has climbed in August.
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Disclosure: None. 10 WallStreetBets Stocks Gaining in August is originally published on Insider Monkey.
