Forget AMC and Gamestop: 10 New Stocks Reddit’s WallStreetBets Is Buying

2. UWM Holdings Corporation (NYSE:UWMC)

Share Price Performance Since July 2021 Start: -15.36%

Number of Hedge Fund Investors In Q1 2024: 19

UWM Holdings Corporation (NYSE:UWMC) is a mortgage lender based in Michigan. It created quite a bit of hype in January 2021 when its $16.1 billion valuation made it the most valuable firm to be bought by SPAC back then. By April 2021 though, UWM Holdings Corporation (NYSE:UWMC)’s shares had lost their luster and were trading at roughly $7.5 – below the pre merger price of $10. Back then, the housing market was fine and the firm was not struggling financially, so the drop indicated that perhaps investors were tired of SPAC stocks. November 2021 was catastrophic, as the stock tanked by 20% after UWM Holdings Corporation (NYSE:UWMC) announced a secondary offering. This also reignited interest from WallStreetBets, but the stock ended up reversing the losses after UWM Holdings Corporation (NYSE:UWMC) suspended its offering. High interest rates aren’t great for the mortgage industry, and the shares bled 45% in 2022 as rates were significantly increased. However, UWM Holdings Corporation (NYSE:UWMC)’s stock is up by 104% since its December 2022 bottom – indicating that WallStreetBets stocks with some fundamental strength actually end up doing well based on their performance and macroeconomic performance.

As for its future, here’s what UWM Holdings Corporation (NYSE:UWMC)’s management had to say during its Q1 2024 earings call:

As these results demonstrate, we continue to deliver on our expectations by remaining focused on being the best mortgage lender in the country. That means continuing to invest in our people and our technology and our service, no matter what others in the industry are doing. We know what we are good at and we know what we’re great at. We don’t try to be all things to all people and we win because of it. As you will hear from Andrew shortly, our financial position is very strong and we fully intend to keep rewarding our shareholders with a great dividend as I’ve been saying quarter in and quarter out.

We remain confident that the volumes and margin will remain strong in 2024 as we’ve been saying for the last couple quarters, and we are uniquely positioned to capitalize on the next refi boom. Whether it comes next month, six months or in 12 months, we are prepared.