In this article, we discuss the 5 stocks both Reddit’s WallStreetBets and hedge funds love. If you want to read our detailed analysis of these stocks, go directly to the 10 Stocks Both Reddit’s WallStreetBets and Hedge Funds Love.
5. ContextLogic Inc. (NASDAQ: WISH)
Number of Hedge Fund Holders: 25
ContextLogic Inc. (NASDAQ: WISH) is ranked fifth on our list of 10 stocks both Reddit’s WallStreetBets and hedge funds love. The stock has offered investors returns exceeding 55% over the course of the past four weeks. The firm operates an online ecommerce platform. On June 21, the share price of the firm jumped more than 18% in a single day as the hype around the company reached fever pitch on the WallStreetBets forum. The firm has become a favorite on the forum as hedge funds attempt to short the stock and retail investors buy it up.
On June 14, ContextLogic Inc. (NASDAQ: WISH) stock surged more than 5% after the firm announced that it had partnered with PrestaShop, an ecommerce platform, to make the merchandise on the latter available on the former.
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.
4. NIO Inc. (NYSE: NIO)
Number of Hedge Fund Holders: 28
NIO Inc. (NYSE: NIO) is a Chinese electric vehicle manufacturer. It is placed fourth on our list of 10 stocks both Reddit’s WallStreetBets and hedge funds love. The company’s shares have offered investors returns exceeding 475% over the course of the past twelve months. NIO is a favorite stock among Redditors and hedge funds. The company has managed to deal with auto supply chain problems better than competitors like Tesla and is expected to have a strong vehicle delivery year.
On July 1, NIO Inc. (NYSE: NIO) posted vehicle delivery numbers for the month of June, reporting more than 8,000 deliveries, up more than 20% compared to the deliveries in May and representing an increase of 116% year-on-year.
At the end of the first quarter of 2021, 28 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in NIO Inc. (NYSE: NIO), down from 34 in the preceding quarter worth $2.6 billion.
In its Q2 2020 investor letter, McLain Capital, an asset management firm, highlighted a few stocks and NIO Inc. (NYSE: NIO) was one of them. Here is what the fund said:
“Nio, Inc. (NIO): It’s stock up 360% since the beginning of June on no news, and one of our more troublesome short positions, the Chinese electric vehicle manufacturer is valued at a whopping $17bln on trailing revenue of only $1.1bln. In 2019, the business ran a -17% gross margin, a -140% EBITDA margin & burned ~$1.5bln in cash in 2019. The stock has become one of the most popular stocks among retail traders with approximately 250,000 accounts holding the name just on the popular Robinhood trading platform.”
3. Palantir Technologies Inc. (NYSE: PLTR)
Number of hedge fund holders: 32
Palantir Technologies Inc. (NYSE: PLTR) is a software firm that specializes in big data analysis and works closely with the intelligence community in the United States. It is ranked third on our list of 10 stocks both Reddit’s WallStreetBets and hedge funds love. The stock has returned 8.8% to investors in the past year. The number of mentions of the firm on the WallStreetBets forum have been increasing in the past few days, leading to a steady increase in the share price.
On June 18, the Federal Aviation Authority in the United States awarded Palantir Technologies Inc. (NYSE: PLTR) a contract for a data analytics tool that will help the agency improve aviation safety and security around the country.
At the end of the first quarter of 2021, 32 hedge funds in the database of Insider Monkey held stakes worth $1.1 billion in Palantir Technologies Inc. (NYSE: PLTR), down from 38 in the preceding quarter worth $1.9 billion.
In its Q4 2020 investor letter, Guardian Fund, an asset management firm, highlighted a few stocks andPalantir Technologies Inc. (NYSE: PLTR) was one of them. Here is what the fund said:
“In October, we bought a stake in Palantir. Earlier, in June, our concentrated Tech Fund, which has a mandate to also buy shares in the secondary market, bought shares of Palantir from insiders, before the direct listing. At the price we bought, the equity had much more upside than downside. Palantir is operating a software platform that functions as the digital infrastructure for data-driven operations and decision making. The software helps to structure and capture context in data of large corporations. Governments are increasingly realizing that they have to deal with serious data challenges and cyber risk. As most governments cannot attract the most talented software engineers, they need private enterprises such as Palantir to help them build solid infrastructure. Foundry, Palantir’s software for enterprises, is used by companiesto make safer cars and airplanes or to accelerate cancer research. The speed to bring new clients on board is improving and revenues will grow faster than expenses. Palantir has a long runway of growth ahead.”
2. Advanced Micro Devices, Inc. (NASDAQ: AMD)
Number of Hedge Fund Holders: 62
Advanced Micro Devices, Inc. (NASDAQ: AMD) is placed second on our list of 10 stocks both Reddit’s WallStreetBets and hedge funds love.The company’s shares have returned 79% to investors in the past twelve months. The firm makes and sells semiconductor chips. AMD stock has been gaining in recent weeks amid a global shortage of chips that has led to an increase in chip prices. The number of mentions of the firm on the WallStreetBets forum has been increasing too.
On June 30, the European Union granted Advanced Micro Devices, Inc. (NASDAQ: AMD) unconditional approval for the purchase of Xilinx, a semiconductor manufacturing company, for a reported $35 billion deal.
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.
1. Tesla, Inc. (NASDAQ: TSLA)
Number of Hedge Fund Holders: 62
Tesla, Inc. (NASDAQ: TSLA) is a California-based electric vehicle maker. It is ranked first on our list of 10 stocks both Reddit’s WallStreetBets and hedge funds love. The stock has returned 181% to investors in the past year. The company has been a favorite of the WallStreetBets forum since more than a year, and retail investors on the forum helped the company register a record rally over the past year that saw share price soar more than 700% before slowing down in April as vehicle deliveries slow down.
On June 30, investment advisory Deutsche Bank maintained a Buy rating on Tesla, Inc. (NASDAQ: TSLA) stock but lowered revenue and earnings per share estimates for the second quarter results. The bank expects Tesla to report 200,000 vehicle deliveries for the second quarter, down from 207,000 in the previous quarter.
At the end of the first quarter of 2021, 62 hedge funds in the database of Insider Monkey held stakes worth $10 billion in Tesla, Inc. (NASDAQ: TSLA), down from 68 in the preceding quarter worth $12 billion.
Here is what Baron Partners Fund has to say about Tesla, Inc. (NASDAQ: TSLA) in its Q1 2021 investor letter:
“Tesla, Inc. designs, manufactures, and sells fully electric vehicles, solar products, energy storage solutions, and battery cells. The stock fell during the quarter as a result of general market dynamics and a potential production slowdown due to parts shortages. A refreshed S/X and China Model Y ramp could also have a negative impact on margins in early 2021. We anticipate strong growth and improved margins driven by new production capacity, manufacturing efficiencies, localization of its manufacturing and supply chain, and maturation of Tesla’s full self-driving technology.”
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