In this article, we discuss the 5 best high risk stocks to buy right now. If you want to read our detailed analysis of these stocks, go directly to the 10 Best High Risk Stocks to Buy Right Now.
5. Roblox Corporation (NYSE:RBLX)
Number of Hedge Fund Holders: 49
52-Week Range: $60.50-$103.87
Roblox Corporation (NYSE:RBLX) owns and operates an online entertainment platform. The company, based in California, is also famous for providing interactive entertainment services. Tao Value, an investment management firm, recently claimed that Roblox could provide investors with better value for money in the metaverse context than Facebook. Facebook had recently announced that it would be rebranding itself as Meta.
BTIG analyst Clark Lampen recently initiated coverage of Roblox Corporation (NYSE:RBLX) stock with a Buy rating and a price target of $98, underlining that there was lots of buzz around the daily active user and developer growth of the company.
At the end of the second quarter of 2021, 49 hedge funds in the database of Insider Monkey held stakes worth $4.9 billion in Roblox Corporation (NYSE:RBLX), up from 46 in the previous quarter worth $3.3 billion.
In its Q2 2021 investor letter, Guardian Fund, an asset management firm, highlighted a few stocks and Roblox Corporation (NYSE:RBLX) was one of them. Here is what the fund said:
“The wonder-tale stories of children’s books show us that there are infinite possibilities of stories and worlds. The metaverse, the idea that describes the shared 3D spaces in a virtual universe, is enabling people to create fiction. Over the past six months, we initiated a new investment in Roblox. The firm was founded in 1989 by David Baszucki and Erik Kassel when they programmed a physics lab where students could study how cars would crash.
Today, Roblox has become a leading platform with a mission to build a human co-experience that enables billions of users to play, learn, and build friendships in the metaverse. Recent advances in cloud computing, computing devices, and machine learning, enable the materialization of the metaverse. Take what we have in virtual reality today and fast-forward a few decades. Humans will be able to experience unimaginable things and in a couple of millennia virtual economies are likely to become bigger than the physical trade on planet Earth.
Over the first quarter of 2021, Roblox reported 140% revenue growth, 42.1 million daily active users, and 9.7 billion engaged hours. The opportunity for this platform is massive.”
4. Paysafe Limited (NYSE:PSFE)
Number of Hedge Fund Holders: 50
52-Week Range: $06.90-$19.57
In August, Bank of America analyst Jason Kupferberg initiated coverage of Paysafe Limited (NYSE:PSFE) stock with a Buy rating and price target of $15, noting that the growth of the gaming market and the existing partnerships of the firm with gamers bode well for it in the next few months. Despite a healthy growth outlook, the short interest on the stock remains high at 5.81%. The company has been expanding into the online casino industry as well.
Paysafe Limited (NYSE:PSFE) could be one of the firms that benefit from the shift towards online betting in recent months. According to a report by Eilers & Krejcik Gaming, a gaming research firm, online gaming revenue could rise to $40 billion in the next few years.
At the end of the second quarter of 2021, 50 hedge funds in the database of Insider Monkey held stakes worth $1.1 billion in Paysafe Limited (NYSE:PSFE), up from 41 in the previous quarter worth $1.3 billion.
3. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 60
52-Week Range: $392.30-$1,177.97
Tesla, Inc. (NASDAQ:TSLA) has crossed $1 trillion in market capitalization but remains one of the most volatile stocks on the market. Several prominent figures in the finance world have bearish bets against the firm, like Michael Burry. However, growth investors, like Cathie Wood, have doubled down on the stock in recent months, pushing the valuation of the company closer to the biggest businesses in the world and backing the stock to climb even higher. To its credit, Tesla has posted market beating earnings and vehicle deliveries in the past few months.
On October 27, investment advisory Piper Sandler maintained an Overweight rating on Tesla, Inc. (NASDAQ:TSLA) stock and raised the price target to $1,300 from $1,200, underlining that the firm could offset margin pressures through strong warranty performance.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Tesla, Inc. (NASDAQ:TSLA) with 23 million shares worth more than $16 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.”
2. Pinterest, Inc. (NYSE:PINS)
Number of Hedge Fund Holders: 63
52-Week Range: $44.04-$89.90
The social media space has become overcrowded and smaller companies are finding it hard to stay relevant as giants take over the industry. Pinterest, Inc. (NYSE:PINS), the California-based visual discovery platform, has over the years lost a lot of users to competitors like Instagram. However, the company has managed to post decent numbers despite the tough competition and there were reports recently that PayPal, the payments giant, is possibly exploring the acquisition of the firm.
As Facebook and Google battle antitrust issues, Pinterest, Inc. (NYSE:PINS) has a chance to step in and present itself as an alternative social platform. The firm beat market expectations on earnings per share by $0.12 in the second quarter.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Alkeon Capital Management is a leading shareholder in Pinterest, Inc. (NYSE:PINS) with 4.5 million shares worth more than $356 million.
In its Q1 2021 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and Pinterest, Inc. (NYSE:PINS) was one of them. Here is what the fund said:
“Pinterest is an operator of a pinboard-style social media website that enables users to create theme-based image collections for events, hobbies, and other personal interests. The firm delivered another quarter of both earnings and forward guidance above investor expectations, sending shares higher. Strength was driven by notable user growth and a return of advertising spending. We remain excited about an increase in video content, new analytics tools for advertisers, and an increasing shift towards ecommerce.”
1. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 63
52-Week Range: $72.50-$128.08
Advanced Micro Devices, Inc. (NASDAQ:AMD) operates in the semiconductor industry where volatility rules the day. In the past few months, supply chain problems and increased demand have led to a dramatic increase in chip prices that analysts predict might last well into 2022. The firm has benefited from this but it is unclear how long this boom will last. However, the chipmaker has been investing in growth opportunities to take advantage of the chip price boom. It is expected to complete the purchase of Xilinx for $35 billion by the end of 2021.
Advanced Micro Devices, Inc. (NASDAQ:AMD) also recently smashed analyst estimates on earnings in the third quarter, reporting earnings per share of $0.73 and a revenue of $4.3 billion. The numbers beat predictions by $0.07 and $200 million respectively.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Advanced Micro Devices, Inc. (NASDAQ:AMD) with 28 million shares worth more than $2.6 billion.
In its Q4 2020 investor letter, Artisan Partners Limited Partnership, an asset management firm, highlighted a few stocks and Advanced Micro Devices, Inc. (NASDAQ:AMD) was one of them. Here is what the fund said:
“We also exited our positions in Advanced Micro Devices. Our investment campaign in Advanced Micro Devices (AMD) began in the second half of 2018, and we have seen a new management team reinvigorate the company’s product portfolio of microprocessors for PCs and servers, graphics processors, and video game consoles. These new, higher-margin products have helped the company partially close its margin gap with peers and capture share from market leader Intel. While we believe there is meaningful runway for further share gains and margin expansion, AMD has appreciated far beyond our mid-cap market cap mandate, and we exited our position.”
You can also take a peek at Warren Buffett Is Selling These 10 Stocks and 10 Best Nickel Stocks to Buy Now.
