5 Popular Stocks Reddit’s WallStreetBets is Talking About Today

1. GameStop Corp. (NYSE: GME)

Number of Hedge Fund Holders: 13     

GameStop Corp. (NYSE: GME) is a Texas-based retail firm that sells video games, consumer electronics, and gaming merchandise. It is ranked first on our list of 10 popular stocks Reddit’s WallStreetBets is talking about today. GameStop stock has returned more than 5,000% to investors over the past year. The company is one of the largest video game retailers in the world. It also owns a video games magazine and is part of the Fortune 500 list of big companies.

In late April, GameStop Corp. (NYSE: GME) stock surged more than 10% as the company announced that it had managed to raise more than $551 million through a market offering of shares. The company said the money would be used to accelerate a shift to ecommerce. 

Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in GameStop Corp. (NYSE: GME) with 3.2 million shares worth more than $620 million.  

Just like BlackBerry Limited (NYSE: BB) and MicroVision, Inc. (NASDAQ: MVIS), GameStop Corp. (NYSE: GME) is one of the most popular stocks Reddit’s WallStreetBets is talking about today.

In its Q1 2021 investor letter, Rhizome Partners, an asset management firm, highlighted a few stocks and GameStop Corp. (NYSE: GME) was one of them. Here is what the fund said:

“The first quarter saw some bizarre market reactions. Game Stop is a heavily shorted legacy video game retailer that saw its stock price rise from $17 to a peak of $483 within a month. It appears that retail investors on a Reddit.com forum called WallStreetBets used memes to create a viral feedback loop of forced buying. Game Stop reached $20 billion in market cap and had more daily trading volume than Apple at one point. The Game Stop short squeeze became a black swan event for the short sellers. Large hedge funds such as Melvin Capital suffered 50% losses during a short period and required emergency capital injections that resulted in costly dilution. Shorting is difficult and introduces a risk of ruin. This is especially true in situations where a large percentage of the float is shorted. We want to remind you that we hedge our portfolio via index puts, sector puts, and sometimes buying puts directly in our own portfolio companies. However, we rarely short because 1) we are not good at it 2) the potential for brain damage is too high and 3) we want to avoid the risk of ruin.”

You can also take a peek at Eagle Capital’s Top 10 Stock Picks and Billionaire David Siegel’s Top 10 Stock Picks.

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