In this article, we discuss the 5 Reddit’s WallStreetBets meme stocks hedge funds are piling into. If you want to read our detailed analysis of these stocks, go directly to the 10 Reddit’s WallStreetBets Meme Stocks Hedge Funds are Piling Into.
5. Clover Health Investments, Corp. (NASDAQ: CLOV)
Number of Hedge Fund Holders: 23
Clover Health Investments, Corp. (NASDAQ: CLOV) stock has returned 15% to investors in the past three months. It is ranked fifth on our list of 10 Reddit’s WallStreetBets meme stocks hedge funds are piling into. The company operates as a health insurer. On May 18, investment advisory Citi maintained a Buy rating on the stock but lowered the price target to $10 from $13. Ralph Giacobbe, an analyst at the firm, said in a note to investors that higher cost and lower guidance were weighing on the stock.
On June 24, Clover Health Investments, Corp. (NASDAQ: CLOV) announced that it would be expanding insurance plans across nine states and more than 200 new counties in a bid to focus on underserved communities. The share price of the firm soared 8% after the announcement.
Out of the hedge funds being tracked by Insider Monkey, San Francisco-based investment firm Greenoaks Capital is a leading shareholder in Clover Health Investments, Corp. (NASDAQ: CLOV) with 96.3 million shares worth more than $728 million.
4. BlackBerry Limited (NYSE: BB)
Number of Hedge Fund Holders: 24
BlackBerry Limited (NYSE: BB) is placed fourth on our list of 10 Reddit’s WallStreetBets meme stocks hedge funds are piling into. The company’s shares have returned 145% to investors in the past twelve months. The firm provides security solutions to businesses and governments across the world. On June 21, the company announced that the QNX software marketed by the firm was now installed in close to 200 million vehicles worldwide. This is an increase of 20 million compared to last year.
On March 31, investment advisory Canaccord Genuity upgraded BlackBerry Limited (NYSE: BB) stock to Hold from Sell with a price target of $9, noting that the firm could see software growth if a deal to sell the licensing business of the firm went through.
Out of the hedge funds being tracked by Insider Monkey, Canada-based investment firm Fairfax Financial Holdings is a leading shareholder in BlackBerry Limited (NYSE: BB) with 46 million shares worth more than $392 million.
3. ContextLogic Inc. (NASDAQ: WISH)
Number of Hedge Fund Holders: 25
ContextLogic Inc. (NASDAQ: WISH) is a California-based mobile ecommerce firm. It is ranked third on our list of 10 Reddit’s WallStreetBets meme stocks hedge funds are piling into. On July 6, the company announced that ContextLogic B.V, the Dutch arm of the business, had been granted a payment license for the European Union region. The share price of the firm jumped more than 5% after the announcement, which a company official said was the first step towards becoming a payment service provider in Europe.
On May 13, investment advisory Stifel maintained a Hold rating on ContextLogic Inc. (NASDAQ: WISH) stock but lowered the price target from $20 to $12 following a disappointing quarterly earnings report of the company.
Out of the hedge funds being tracked by Insider Monkey, New York-based firm JS Capital is a leading shareholder in ContextLogic Inc. (NASDAQ: WISH) with 8.3 million shares worth more than $131 million.
2. Paysafe Limited (NYSE: PSFE)
Number of Hedge Fund Holders: 41
Paysafe Limited (NYSE: PSFE) is a company that provides digital payments solutions to businesses. It is placed second on our list of 10 Reddit’s WallStreetBets meme stocks hedge funds are piling into. The company’s shares have offered investors returns exceeding 2% over the course of the past week. The firm recently joined the Russell 3000 Index and has been one of the most mentioned stocks on Reddit forums over the past few weeks. On June 25, the share price of the firm jumped 14% as funds tracking Russell 3000 geared up to buy the stock.
On June 28, investment advisory Cowen initiated coverage on Paysafe Limited (NYSE: PSFE) stock with an Outperform rating and a price target of $15, noting the business-to-business revenue stream of the firm as the key that was keeping it ahead of the competition.
At the end of the first quarter of 2021, 41 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in Paysafe Limited (NYSE: PSFE).
1. Roblox Corporation (NYSE: RBLX)
Number of Hedge Fund Holders: 46
Roblox Corporation (NYSE: RBLX) is ranked first on our list of 10 Reddit’s WallStreetBets meme stocks hedge funds are piling into. The stock has offered investors returns exceeding 14% over the course of the past three months. The firm owns and runs an online entertainment platform. On June 30, investment advisory Citic Securities initiated coverage on the stock with an Overweight rating and a price target of $96, highlighting that the firm was the leading multiplayer creation and social platform in the world with a growing revenue.
On May 10, Roblox Corporation (NYSE: RBLX) reported earnings results for the first quarter of 2021, posting a revenue of more than $650 million, up 161% year-on-year and beating market predictions by $572 million.
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).
You can also take a peek at 10 Best Tech ETFs to Buy According to Reddit and Forget AMC and Gamestop: 10 New Stocks Reddit’s WallStreetBets Is Buying.
