In this article, we discuss 5 Reddit WallStreetBets stocks that are rising. If you want to see some more stocks in this selection, click 10 Reddit WallStreetBets Stocks That Are Rising.
5. Roblox Corporation (NYSE:RBLX)
Gain in Share Price in the Last 5 Days as of March 23: 26.30%
Number of Hedge Fund Holders: 61
Roblox Corporation (NYSE:RBLX) is a California-based video game developer that provides users with 3D entertainment and learning experiences. The stock has climbed 26.30% in the last five days, and Roblox Corporation (NYSE:RBLX) has been gaining the interest of Redditors.
On March 16, Stifel analyst Drew Crum lowered the price target on Roblox Corporation (NYSE:RBLX) to $65 from $90 and kept a Buy rating on the shares after the company posted “mixed” KPIs in February. He expects improving bookings comps starting in late Q2 through the second half of the year and views the reward/risk as “better to the upside” with the pullback in the shares.
According to the Q4 database of Insider Monkey, 61 hedge funds were bullish on Roblox Corporation (NYSE:RBLX), compared to 50 funds in the prior quarter. Jim Simons’ Renaissance Technologies is the leading shareholder of the company, with 5.3 million shares worth $557 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”.
4. JD.com, Inc. (NASDAQ:JD)
Gain in Share Price in the Last 5 Days as of March 23: 3.78%
Number of Hedge Fund Holders: 67
JD.com, Inc. (NASDAQ:JD) is a Chinese e-commerce company that specializes in online retail and logistics solutions.
On March 10, JD.com, Inc. (NASDAQ:JD) posted its fourth quarter results. The company reported earnings per share of $0.35, above market estimates by $0.08. Revenue over the period jumped 26.33% year-over-year to $42.64 billion, outperforming consensus by approximately $301 million.
JPMorgan analyst Andre Chang double downgraded JD.com, Inc. (NASDAQ:JD) on March 14 to Underweight from Overweight with a price target of $35, down from $100. The analyst expects the sector-wide selloff to continue without valuation support in the short-term as risk management becomes the most important consideration among global investors in relation to their Chinese investments.
According to Insider Monkey’s Q4 database, Tiger Global Management held the biggest stake in JD.com, Inc. (NASDAQ:JD), with 53.7 million shares worth $3.7 billion. Overall, 67 hedge funds were bullish on the stock at the end of December 2021.
Here is what Argosy Investors has to say about JD.com, Inc. (NASDAQ:JD) in its Q3 2021 investor letter:
“We sold JD as a result of the furor over Chinese stocks during the quarter. We had been concerned about China’s lack of respect for investor rights for some time, and Beijing has become significantly more aggressive in asserting itself of late. In addition, the legal structure Chinese companies use to come public in the U.S., a Cayman Islands shell corporation leaves American investors with an unsure path to recovering value should these companies cease to trade on U.S. exchanges. Because of the uncertainty, we exited our position in JD completely. We still love JD’s long-term prospects, but we cannot estimate the legal/regulatory risk associated with these companies anymore. More broadly, we are freeing up cash for some other positions we already own which have declined in this market, and after additional review, remain attractive.”
3. Shopify Inc. (NYSE:SHOP)
Gain in Share Price in the Last 5 Days as of March 23: 14.92%
Number of Hedge Fund Holders: 86
Shopify Inc. (NYSE:SHOP) is a Canadian e-commerce platform that engages with merchants worldwide to provide a wide variety of retail items to its customers. It also provides merchant and payments solutions via its website and application. Redditors are loading up on the stock, and Shopify Inc. (NYSE:SHOP) shares have gained roughly 15% in the last five days.
Over the last month, the e-commerce sector has been entirely too volatile, given the risk sentiment emanating from the macro backdrop, specially the Russia-Ukraine war. Shopify Inc. (NYSE:SHOP) has suffered extreme fluctuation in the last month, with shares gaining almost 30% but losing close to 15% on March 21.
On February 17, DA Davidson analyst Tom Forte lowered the price target on Shopify Inc. (NYSE:SHOP) to $800 from $1,400 and maintained a Neutral rating on the shares as he resets his view for what success looks like for Shopify Inc. (NYSE:SHOP). The analyst also reduced his long-term adjusted EBITDA margin projections to 30% from 45% on the likelihood that expenditure on sales and marketing, R&D, and G&A will be higher than his earlier forecasts.
At the end of the December quarter, 86 hedge funds held long positions in Shopify Inc. (NYSE:SHOP), up from 73 funds in the prior quarter. Stephen Mandel’s Lone Pine Capital is the leading shareholder of Shopify Inc. (NYSE:SHOP), with a position worth approximately $2 billion.
Here is what Davis New York Venture Fund has to say about Shopify Inc. (NYSE:SHOP) in its Q4 2021 investor letter:
“While the above discussion of broad investment categories provides useful context, we always emphasize the old adage that investing is the art of the specific. With this in mind, an example may be helpful. Tesla, Nvidia and Shopify are three of the hottest momentum stocks in today’s market, each having compounded at triple-digit-rates over the last three years. Combined, these three have a market capitalization of roughly $2.3 trillion. In other words, should an investor happen to have a couple of trillion dollars lying around, one investment option, which we will call the Market Darlings portfolio, would be to buy 100% of these three remarkable growth companies and live off their current and future earnings.”
2. Tesla, Inc. (NASDAQ:TSLA)
Gain in Share Price in the Last 5 Days as of March 23: 20.23%
Number of Hedge Fund Holders: 91
Elon Musk’s Tesla, Inc. (NASDAQ:TSLA) has recently been making rounds in the Reddit community, as more and more people gain from their bullish calls on the EV automaker. While Tesla, Inc. (NASDAQ:TSLA) shares have gained 20.23% in the past few days, Redditors are not the only people making long bets on the stock. Tesla, Inc. (NASDAQ:TSLA) recently crossed the trillion dollar valuation mark, making investors frenzied to own a piece of the growing company.
Institutional interest in Tesla, Inc. (NASDAQ:TSLA) soared at the end of December 2021, as 91 hedge funds in the database of Insider Monkey reported long positions in the company, compared to 60 funds in the prior quarter. ARK Investment Management remains a prominent Tesla, Inc. (NASDAQ:TSLA) shareholder, with 1.9 million shares worth over $2 billion.
On March 9, Piper Sandler analyst Alexander Potter stated that he noticed a “general uptick in inbound calls” from investors regarding Tesla, Inc. (NASDAQ:TSLA)’s exposure to geopolitical risks and commodity price hikes. Deteriorating relations between the US and China, as well as rising nickel prices are headwinds for the stock. The analyst views Tesla, Inc. (NASDAQ:TSLA)’s China exposure as a “major positive” but warned that American companies “are eventually used as pawns in a wider geopolitical conflict, then Tesla shareholders would likely suffer.” He reiterated an Overweight rating on Tesla, Inc. (NASDAQ:TSLA) shares with a $1,350 price target.
Here is what Davis New York Venture Fund has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q4 2021 investor letter:
“While the above discussion of broad investment categories provides useful context, we always emphasize the old adage that investing is the art of the specific. With this in mind, an example may be helpful. Tesla, Nvidia and Shopify are three of the hottest momentum stocks in today’s market, each having compounded at triple-digit-rates over the last three years. Combined, these three have a market capitalization of roughly $2.3 trillion. In other words, should an investor happen to have a couple of trillion dollars lying around, one investment option, which we will call the Market Darlings portfolio, would be to buy 100% of these three remarkable growth companies and live off their current and future earnings.”
1. Alibaba Group Holding Limited (NYSE:BABA)
Gain in Share Price in the Last 5 Days as of March 23: 18.32%
Number of Hedge Fund Holders: 96
Alibaba Group Holding Limited (NYSE:BABA) is a Chinese tech and ecommerce giant that has gained 18.32% in the last couple of days as China eases the year-long regulations on leading technology firms. Redditors have reported long positions in Alibaba Group Holding Limited (NYSE:BABA) recently.
On March 21, Alibaba Group Holding Limited (NYSE:BABA) reported that its board has approved to upgrade its share repurchase program from $15 billion to $25 billion. The management is confident in Alibaba Group Holding Limited (NYSE:BABA)’s continued growth in the future.
JPMorgan analyst Alex Yao downgraded Alibaba Group Holding Limited (NYSE:BABA) to Underweight from Overweight with a $65 price target on March 14, citing that the uncertain macro backdrop is making global investors exit the stock to limit their exposure to the Chinese internet sector.
Hedge fund sentiment has been negative around Alibaba Group Holding Limited (NYSE:BABA). In Q4 2021, 96 funds were bullish on the stock, down from 115 funds in the prior quarter. Fisher Asset Management is the biggest shareholder of the firm, with more than 14 million shares worth $1.6 billion.
Here is what Longleaf Partners International Fund has to say about Alibaba Group Holding Limited (NYSE:BABA) in its Q4 2021 investor letter:
“Alibaba (-50%, -2.26%; -22%, -0.82%), the largest online retail platform in China, was another top detractor for the year and in the fourth quarter. Alibaba reported weak quarterly results and downgraded its sales outlook for the current fiscal year to 20- 23% growth, down from original guidance of 29-32% growth. Macro headwinds, weak consumer sentiment, regulatory scrutiny and competitive forces are having a larger than expected impact on overall retail sales and Alibaba’s market share. Notably, overall retail sales in China slowed down to a meager 5% growth in the September quarter. Slowing consumption, combined with stiff competition from new entrants in livestreaming ecommerce, have resulted in transitory deceleration in Alibaba’s core ecommerce growth trajectory. Additionally, the company is accelerating strategic investments in new initiatives, including Community Group Buying (Taocaicai), Taobao Deals, Local Consumer Services and International Ecommerce. These are future growth drivers but are depressing company’s earnings today. In December, we exited our full position in Alibaba. This was more of a tactical move than a change in investment conviction. We initiated the position early in 2021, and the continued challenges in the second half of the year resulted in a loss that was material enough to be helpful from a tax distribution management point of view. We are sensitive to taxable gains and try to minimize where sensible, so we took advantage of the opportunity to reduce that liability and plan on revisiting the Alibaba opportunity in 2022. We continue to own Alibaba in our Asia Pacific strategy.”
You can also take a look at 10 ETFs to Buy and Hold for the Next 10 Years and 10 Monthly Dividend Stocks with Over 6% Yield.
