This article presents an overview of the Forget AMC and Gamestop: 5 New Stocks Reddit’s WallStreetBets Is Buying. For a detailed overview of such stocks, read our article, Forget AMC and Gamestop: 10 New Stocks Reddit’s WallStreetBets Is Buying.
5. Apple Inc (NASDAQ:AAPL)
Number of Hedge Fund Investors: 134
Apple Inc (NASDAQ:AAPL) ranks fifth in our list of the new stocks Reddit’s WallStreetBets is buying. Redditors are fans of Apple Inc’s (NASDAQ:AAPL) huge cash position.
Recently, Bloomberg reported Apple Inc’s (NASDAQ:AAPL) iPhone and smartwatch product design chief Tang Tan will step down in February.
Apple Inc (NASDAQ:AAPL) has been visibly quiet about AI as other companies release product after product related to generative AI. Some believe Apple Inc (NASDAQ:AAPL) might be working on its own LLM and could release a highly innovative AI software over the course of the next few months.
Tim Cook during Q3 earnings call briefly talked about AI when an analyst asked him how does Apple Inc (NASDAQ:AAPL) plan to invest in the trend:
“If you take a step back, we view AI and machine learning as core fundamental technologies that are integral to virtually every product that we build. And so if you think about WWDC in June, we announced some features that will be coming in iOS 17 this fall, like Personal Voice and Live Voicemail. Previously, we had announced lifesaving features like fall detection and crash detection and ECG. None of these features that I just mentioned and many, many more would be possible without AI and machine learning. And so it’s absolutely critical to us. And of course, we’ve been doing research across a wide range of AI technologies, including generative AI for years. We’re going to continue investing and innovating and responsibly advancing our products with these technologies with the goal of enriching people’s lives.
And so that’s what it’s all about for us. And as you know, we tend to announce things as they come to market, and that’s our MO, and I’d like to stick to that.”
Read the full earnings call transcript here.
Here is what White Brook Capital has to say about Apple Inc. (NASDAQ:AAPL) in its Q3 2023 investor letter:
“The magnificent seven, that underpin the S&P 500 performance, which includes Apple Inc. (NASDAQ:AAPL), now comprise almost 30% of the market capitalization of the S&P500. At least three of the seven stocks have heightened downside risk and suffer from already high penetration, weakening end markets, competitive risk, and lofty valuation. They have been remarkably resilient to increased interest rates and the potential for slowing growth. Small and midcap stocks, on the other hand, have been systemically penalized by fears of recession and continue to price that eventuality even as significantly better outcomes have become more probable. Today, it’s relatively easy to find attractive investments in this segment.”
4. Nvidia Corp (NASDAQ:NVDA)
Number of Hedge Fund Investors: 180
Nvidia Corp (NASDAQ:NVDA) ranks fourth in our list of the stocks Redditors at the WallStreetBets community are bullish on. The biggest reason behind their excitement around Nvidia Corp (NASDAQ:NVDA) is, you guessed it, AI, as Nvidia Corp (NASDAQ:NVDA) is expected to see an explosive demand for its semiconductor chips due to a massive boom in the AI software industry.
Nvidia Corp’s (NASDAQ:NVDA) CEO Jensen Huang recently said Nvidia Corp (NASDAQ:NVDA) is working with the US government to ensure its chips for China are in compliance with the U.S. export restrictions, Reuters reported.
As of the end of the third quarter of 2023, 180 hedge funds tracked by Insider Monkey had stakes in Nvidia Corp (NASDAQ:NVDA) as of the end of the third quarter of 2023.
Here is what White Brook Capital has to say about NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2023 investor letter:
“The magnificent seven, that underpin the S&P 500 performance, which includes NVIDIA Corporation (NASDAQ:NVDA), now comprise almost 30% of the market capitalization of the S&P500. At least three of the seven stocks have heightened downside risk and suffer from already high penetration, weakening end markets, competitive risk, and lofty valuation. They have been remarkably resilient to increased interest rates and the potential for slowing growth. Small and midcap stocks, on the other hand, have been systemically penalized by fears of recession and continue to price that eventuality even as significantly better outcomes have become more probable. Today, it’s relatively easy to find attractive investments in this segment.”
3. Meta Platforms Inc (NASDAQ: META)
Number of Hedge Fund Investors: 234
Meta Platforms Inc (NASDAQ: META) shares have gained about 166% year to date through December 9. Redditors in the WallStreetBets community are enthusiastic about the stock’s future amid AI and other growth catalysts. Recently, a Redditor in the WSB community made waves after he invested all his life savings (YOLO’d) buying Meta Platforms Inc (NASDAQ: META) call options, only to suffer huge losses, which made thousands of Redditors and the admin of the community worried about this Redditor’s well-being.
Earlier this month, Mark Zuckerberg disclosed in an SEC filings that he intends to sell 28,009 shares of Meta Platforms Inc (NASDAQ: META), worth about $9.06 million. Meta Platforms Inc’s (NASDAQ: META) COO Javier Olivan also disclosed the sale of an aggregate of 6,077 shares for about $2.06 million.
Here is what White Brook Capital has to say about Meta Platforms, Inc. (NASDAQ:META) in its Q3 2023 investor letter:
“The magnificent seven, that underpin the S&P 500 performance, which includes Meta Platforms, Inc. (NASDAQ:META), now comprise almost 30% of the market capitalization of the S&P500. At least three of the seven stocks have heightened downside risk and suffer from already high penetration, weakening end markets, competitive risk, and lofty valuation. They have been remarkably resilient to increased interest rates and the potential for slowing growth. Small and midcap stocks, on the other hand, have been systemically penalized by fears of recession and continue to price that eventuality even as significantly better outcomes have become more probable. Today, it’s relatively easy to find attractive investments in this segment.”
2. Amazon.com Inc (NASDAQ:AMZN)
Number of Hedge Fund Investors: 286
Amazon.com Inc (NASDAQ:AMZN) ranks second in our list of the stocks Reddit’s WallStreetBets is buying. Amazon.com Inc (NASDAQ:AMZN) shares have gained about 71% year to date through December 9.
Recently, Oppenheimer called Amazon.com Inc (NASDAQ:AMZN) its top pick for 2024. The firm upped its price target on the shares to $200 from $170.
Here is what White Brook Capital has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2023 investor letter:
“The magnificent seven, that underpin the S&P 500 performance, which includes Amazon.com, Inc. (NASDAQ:AMZN), now comprise almost 30% of the market capitalization of the S&P500. At least three of the seven stocks have heightened downside risk and suffer from already high penetration, weakening end markets, competitive risk, and lofty valuation. They have been remarkably resilient to increased interest rates and the potential for slowing growth.”
1. Microsoft Corp (NASDAQ:MSFT)
Number of Hedge Fund Investors: 306
Reddit’s WallStreetBets is generally bullish on Microsoft Corp (NASDAQ:MSFT) which has been on an absolute tear this year, thanks to the AI boom that seems to have no end in sight. Many comments in Reddit WallStreetBets also talk about secular growth catalysts for Microsoft Corp (NASDAQ:MSFT), including Microsoft Corp’s (NASDAQ:MSFT) huge penetration in the enterprise space, Cloud computing and productivity.
Recently, a comment on Microsoft Corp (NASDAQ:MSFT) discussion thread in Reddit WSB said:
“Microsoft makes up 80% of end user computing, most if not all of the office applications used, and a huge chunk of (forced) cloud computing. They’re not going anywhere, ever.”
Microsoft Corp (NASDAQ:MSFT) was the most popular stock among the 910 hedge funds tracked by Insider Monkey as of the end of the third quarter of 2023.
Here is what White Brook Capital has to say about Microsoft Corporation (NASDAQ:MSFT) in its Q3 2023 investor letter:
“The magnificent seven, that underpin the S&P 500 performance, which includes Microsoft Corporation (NASDAQ:MSFT), now comprise almost 30% of the market capitalization of the S&P500. At least three of the seven stocks have heightened downside risk and suffer from already high penetration, weakening end markets, competitive risk, and lofty valuation. They have been remarkably resilient to increased interest rates and the potential for slowing growth. Small and midcap stocks, on the other hand, have been systemically penalized by fears of recession and continue to price that eventuality even as significantly better outcomes have become more probable. Today, it’s relatively easy to find attractive investments in this segment.”
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