In this article, we discuss the 5 growth stocks Reddit’s WallStreetBets is buying. If you want to read our detailed analysis of these stocks, go directly to the 10 Growth Stocks Reddit’s WallStreetBets Is Buying.
5. Novavax, Inc. (NASDAQ: NVAX)
Number of Hedge Fund Holders: 38
Novavax, Inc. (NASDAQ: NVAX) stock has returned 62% to investors over the past twelve months. It is placed fifth on our list of growth stocks Reddit’s WallStreetBets is buying. The firm operates in the biotechnology sector and focuses on the development of vaccines that treat serious infectious diseases. On July 2, news agency Reuters reported that Taiwan had chosen to get the COVID-19 vaccine developed by Novavax through the COVAX global sharing scheme, ordering more than 4.7 million shots of the vaccine through the program.
On June 15, investment advisory Cantor Fitzgerald maintained an Overweight rating on Novavax, Inc. (NASDAQ: NVAX) stock and raised the price target to $272 from $217, citing enhanced conviction for a coronavirus vaccine developed by the company.
At the end of the first quarter of 2021, 38 hedge funds in the database of Insider Monkey held stakes worth 1.2 billion in Novavax, Inc. (NASDAQ: NVAX), up from 37 in the previous quarter worth $1 billion.
4. DoorDash, Inc. (NYSE: DASH)
Number of Hedge Fund Holders: 38
DoorDash, Inc. (NYSE: DASH) is ranked fourth on our list of growth stocks Reddit’s WallStreetBets is buying. The company’s shares have returned 23% to investors over the past six months. The firm operates as a logistics platform connecting merchants to customers. It provides the largest food delivery service in the United States. On June 14, the company announced that it was partnering with PetSmart to facilitate delivery of pet-related products from more than 1,400 PetSmart stores nationwide.
On June 29, investment advisory Wells Fargo maintained an Overweight rating on DoorDash, Inc. (NYSE: DASH) stock and raised the price target to $215 from $170, highlighting several possible growth catalysts for the firm in the post-pandemic economy.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Coatue Management is a leading shareholder in the firm with 9.2 million shares worth more than $1.2 billion.
3. Teladoc Health, Inc. (NYSE: TDOC)
Number of Hedge Fund Holders: 42
Teladoc Health, Inc. (NYSE: TDOC) is a New York-based company that provides virtual healthcare services. It is placed third on our list of growth stocks Reddit’s WallStreetBets is buying. On July 14, the share price of the firm jumped close to 3% after it announced that it was partnering with software giant Microsoft to integrate the Solo platform of the former with the Teams platform of the latter. The move is part of a plan by both firms to strengthen the access to healthcare for patients who want virtual services.
On July 8, investment advisory Piper Sandler maintained an Overweight rating on Teladoc Health, Inc. (NYSE: TDOC) stock with a price target of $291, underlining that the firm was dominating direct-to-consumer behavioral healthcare.
At the end of the first quarter of 2021, 42 hedge funds in the database of Insider Monkey held stakes worth $3.3 billion in Teladoc Health, Inc. (NYSE: TDOC), down from 50 in the preceding quarter worth $2.6 billion.
In its Q4 2020 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and Teladoc Health, Inc. (NYSE: TDOC) was one of them. Here is what the fund said:
“Teladoc Health offers remote physician access to patients at home. After experiencing incredible levels of growth throughout the early stages of the pandemic as its unique value proposition rose to the forefront of the healthcare industry, the firm’s shares cooled off a bit as optimistic vaccine data slightly curtailed investor expectations for the firm’s future growth potential. We sold the stock.”
2. Roblox Corporation (NYSE: RBLX)
Number of Hedge Fund Holders: 46
Roblox Corporation (NYSE: RBLX) stock has returned 14% to investors over the past three months, It is placed second on our list of growth stocks Reddit’s WallStreetBets is buying. The company owns and runs an online entertainment platform. On June 15, research firm App Annie revealed that Roblox had topped mobile game grossing charts in the first three months of 2021. The firm is well-positioned to benefit from an increase in mobile gaming as home games become less popular as smartphones become more powerful.
On June 30, investment advisory Citic Securities initiated coverage of Roblox Corporation (NYSE: RBLX) stock with an Overweight rating and a price target of $96, noting that the firm was the leading multiplayer creation and social platform.
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).
1. Advanced Micro Devices, Inc. (NASDAQ: AMD)
Number of Hedge Fund Holders: 62
Advanced Micro Devices, Inc. (NASDAQ: AMD) is ranked first on our list of growth stocks Reddit’s WallStreetBets is buying. The company’s shares have offered investors returns exceeding 51% over the course of the past twelve months. The firm operates as a semiconductor manufacturing company. On June 17, the share price of the firm jumped close to 4% after internet search engine Google announced that it would be using AMD chips to power Tau Virtual Machines used by the Google Cloud.
On July 15, investment advisory Citi upgraded Advanced Micro Devices, Inc. (NASDAQ: AMD) stock to Neutral from Sell and raised the price target to $95 from $17, highlighting that the firm was making strides in the server market.
Out of 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 25 million shares worth more than $1.9 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 10 Reddit’s WallStreetBets Meme Stocks Hedge Funds are Piling Into and 10 Biggest Hedge Fund Casualties of Reddit WallStreetBets’ Short Squeezes.
