5 Reddit Stocks That Are Too Cheap To Ignore

In this article, we will be taking a look at 5 Reddit stocks that are too cheap to ignore. To see some other stocks in this list, you can go directly to see the 10 Reddit Stocks That Are Too Cheap To Ignore.

5. Upstart Holdings, Inc. (NASDAQ:UPST)

Number of Hedge Fund Holders: 20

Share Price as of November 22: $18.56

Upstart Holdings, Inc. (NASDAQ:UPST) is a consumer finance company. It is based in San Mateo, California.

John Hecht at Jefferies placed a Hold rating on Upstart Holdings, Inc. (NASDAQ:UPST) shares on November 9, alongside a $20 price target.

This October, the company began showing relative strength against tech stocks. The company’s guidance for the fourth quarter includes revenues of about $125 million to $145 million, and net interest income of about $25 million.

There were 20 hedge funds long Upstart Holdings, Inc. (NASDAQ:UPST) in the third quarter. Their total stake value was $81.4 million.

4. NIO Inc. (NYSE:NIO)

Number of Hedge Fund Holders: 26

Share Price as of November 22: $10.02

NIO Inc. (NYSE:NIO) is an automobile manufacturing company based in China. It sells smart electric vehicles such as five, six, and seven-seater electric SUVs, alongside smart electric sedans.

Edison Yu at Deutsche Bank holds a Buy rating on NIO Inc. (NYSE:NIO) shares as of November 21. The analyst also raised his price target on the stock from $20 to $21.

NIO Inc. (NYSE:NIO) is a unique company in the automotive sector with significant growth prospects and profitability potential. Consensus revenue estimates for the company are for about $14 billion in 2023, showing a more affordable stock trading at only about 1.24 times forward sales now. This makes it a highly undervalued stock investors should pick up before it explodes.

NIO Inc. (NYSE:NIO) was found among the 13F holdings of 26 hedge funds in the third quarter, and 25 hedge funds in the previous quarter. Their total stake values were $518.9 million and $873.9 million, respectively.

3. Palantir Technologies Inc. (NYSE:PLTR)

Number of Hedge Fund Holders: 35

Share Price as of November 22: $7.19

Palantir Technologies Inc. (NYSE:PLTR) is an information technology company based in Denver, Colorado. It builds and deploys software platforms for the intelligence community in the US.

On November 8, Brian Gesuale, an analyst at Raymond James, reiterated a Strong Buy rating on Palantir Technologies Inc. (NYSE:PLTR).

Palantir Technologies Inc. (NYSE:PLTR) has a target of $4 billion in revenue by 2025, and the company is on track to deliver annual revenue growth of 23% for this year. The company’s government segment has grown by 26% year-over-year as of this November, and it has surpassed the $1 billion revenue mark as well. This is in light of geopolitical uncertainty leading government agencies to expand their contracts with Palantir Technologies Inc. (NYSE:PLTR), to the latter’s benefit.

Our hedge fund data shows 35 hedge funds long Palantir Technologies Inc. (NYSE:PLTR) in the third quarter. Their total stake value was $431.9 million.

2. Roblox Corporation (NYSE:RBLX)

Number of Hedge Fund Holders: 38

Share Price as of November 22: $30.77

Roblox Corporation (NYSE:RBLX) is an interactive home entertainment company that develops and operates an online entertainment platform. The company is based in San Mateo, California.

Jason Bazinet at Citigroup holds a Buy rating on Roblox Corporation (NYSE:RBLX) share as of November 21.

Roblox Corporation (NYSE:RBLX) is a company that has proven its ability to generate positive cash flow. The company’s latest third-quarter earnings release showed that bookings on Roblox Corporation (NYSE:RBLX) beat expectations by $12.47 million, coming in at $701.7 million. This figure was 10% higher year-over-year, and 15% higher on a constant currency basis.

In total, 38 funds were long Roblox Corporation (NYSE:RBLX) in the third quarter and in the previous quarter as well. Their total stake values were $1.6 billion and $1.4 billion, respectively.

1. Snap Inc. (NYSE:SNAP)

Number of Hedge Fund Holders: 42

Share Price as of November 22: $9.96

Snap Inc. (NYSE:SNAP) is a communication services company operating in North America, Europe, and internationally. It offers Snapchat, a camera application with a range of features such as Snap Map, Stories, and Spotlight, enabling users to communicate visually through short videos and images.

UBS analyst Lloyd Walmsley holds a Buy rating on Snap Inc. (NYSE:SNAP) shares as of October 21.

Snap Inc. (NYSE:SNAP) is a communications stock that has shown growth potential in 2022. In the third quarter, the company’s daily active users jumped by 19% year-over-year. Its users are what enable the company to bring in revenue through advertisements and subscriptions, making this growth noteworthy especially given that many social media applications have been suffering in 2022 from slow user growth.

Snap Inc. (NYSE:SNAP) was found among the 13F holdings of 42 hedge funds in the third quarter, with a total stake value of $825.7 million.

RiverPark Funds, an investment management company, mentioned Snap Inc. (NYSE:SNAP) in its third-quarter 2022 investor letter. Here’s what the firm said:

“SNAP shares were our top detractor for the quarter on its July decline from weaker revenue growth relative to guidance (which had been reduced in May) and the fact that management did not provide an outlook for 3Q. Shares subsequently rebounded somewhat as the company announced better-than-expected near-term revenue growth, while announcing a broadbased cost restructuring.

Although the company continues to face near-term macro headwinds and difficult year-over-year comparisons from COVID-fueled quarters last year, we believe SNAP can reaccelerate its revenue growth to greater than 20% annually over the next several years. With TTM revenue of $4.5 billion (as compared with Meta’s $120 billion), 347 million daily average users (about 1/10 of Meta’s), and $14 TTM ARPU (about 1/3 of Meta’s), we believe SNAP has a long runway for both revenue growth and expanded profitability as it improves its platform functionality, continues to grow its audience (daily active users continue to grow at a double-digit rate), and expands its monetization.”

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