In this article, we discuss the 5 worst-performing stocks of Reddit’s WallStreetBets. If you want to read our detailed analysis of these stocks, go directly to the Meme Stock Crash: 10 Worst-Performing Stocks of Reddit’s WallStreetBets.
5. BlackBerry Limited (NYSE: BB)
Number of Hedge Fund Holders: 24
Monthly Decline: 21%
BlackBerry Limited (NYSE: BB) is a Canadian software firm that markets security services to governments and enterprises around the world. It is ranked fifth on our list of 10 worst-performing stocks of Reddit’s WallStreetBets. The company’s shares have plunged by 14% in the past five days. On June 25, investment advisory Canaccord downgraded the stock to Sell from Hold on the back of valuation concerts and quarterly earnings results posted a day earlier that had failed to impress investors.
On June 25, investment advisory TD Securities downgraded BlackBerry Limited (NYSE: BB) stock to Reduce from Hold. Daniel Chan, an analyst at the firm, issued the update and noted the firm had a high valuation compared to fundamental performance.
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.
4. Workhorse Group Inc. (NASDAQ: WKHS)
Number of Hedge Fund Holders: 16
Monthly Decline: 24%
Workhorse Group Inc. (NASDAQ: WKHS) is placed fourth on our list of 10 worst-performing stocks of Reddit’s WallStreetBets. The stock has declined in value by 43% year-to-date. The firm makes and sells electric vehicles and aircraft. It is based in Ohio. Amid selling pressure in the electric vehicle sector, the stock has been falling in value in recent days after a record rally at the turn of the year. On July 13, the share price slumped by more than 4% in a single day amid reports of an auditory conflict related to the firm.
On April 6, investment advisory Cowen downgraded Workhorse Group Inc. (NASDAQ: WKHS) stock to Market Perform from Outperform with a price target of $13. The advisory underlined the shares were fairly valued compared to basic business fundamentals.
At the end of the first quarter of 2021, 16 hedge funds in the database of Insider Monkey held stakes worth $96.6 million in Workhorse Group Inc. (NASDAQ: WKHS), the same as in the preceding quarter worth $90.8 million.
3. MicroVision, Inc. (NASDAQ: MVIS)
Number of hedge fund holders: 12
Monthly Decline: 27%
MicroVision, Inc. (NASDAQ: MVIS) is a Washington-based firm that makes and sells lidar sensors. These are used by firms working in the self-driving and autonomous driving sector. It is ranked third on our list of 10 worst-performing stocks of Reddit’s WallStreetBets. The company’s shares have slumped by 14% since the last week. On June 21, the firm announced that it had entered into an agreement with Craig Hallum Capital for a $140 million at-the-market equity offering. The company has a market cap of over $2 billion.
In earnings results for the first quarter of 2021, posted on April 29, MicroVision, Inc. (NASDAQ: MVIS) reported earnings per share of -$0.04, missing market estimates by $0.01. The revenue over the period was $0.5 million, down 66% year-on-year.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in MicroVision, Inc. (NASDAQ: MVIS) with 1.2 million shares worth more than $32 million.
2. Clover Health Investments, Corp. (NASDAQ: CLOV)
Number of Hedge Fund Holders: 23
Monthly Decline: 31%
Clover Health Investments, Corp. (NASDAQ: CLOV) stock has plunged by 51% over the course of the past six months. It is placed second on our list of 10 worst-performing stocks of Reddit’s WallStreetBets. The firm operates as a medical care insurer. The company recently lowered guidance estimates. The share price of the firm has been falling as a meme stock crash continues. Investment advisory Bank of America had downgraded the stock to Underperform from Neutral last month.
On July 12, investment advisory JP Morgan also downgraded Clover Health Investments, Corp. (NASDAQ: CLOV) stock to Underweight from Neutral. The price target on the firm was also reduced from $15 to $9 and guidance metrics reduced.
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.
1. AMC Entertainment Holdings, Inc. (NYSE: AMC)
Number of Hedge Fund Holders: 19
Monthly Decline: 41%
AMC Entertainment Holdings, Inc. (NYSE: AMC) is ranked first on our list of 10 worst-performing stocks of Reddit’s WallStreetBets. The company’s shares have declined by 24% over the course of the past week. The firm operates as a movie theatre chain. It is based in Kansas. The company is the second most popular meme stock and has been under immense pressure recently, registering the highest losses as compared to other meme stocks. It has been one of the most volatile stocks on the market in the past few months.
On July 14, the share price of AMC Entertainment Holdings, Inc. (NYSE: AMC) plunged by close to 10% as a report by financial analytics firm S3 Partners revealed that the number of shorted shares of the firm had jumped more than 6% compared to a week ago.
At the end of the first quarter of 2021, 19 hedge funds in the database of Insider Monkey held stakes worth $34 million in AMC Entertainment Holdings, Inc. (NYSE: AMC), up from 16 in the preceding quarter worth $24 million.
In its Q4 2020 investor letter, Mittleman Investment Management LLC, an asset management firm, highlighted a few stocks and AMC Entertainment Holdings, Inc. (NYSE: AMC) was one of them. Here is what the fund said:
“AMC Entertainment (AMC) was our only material loser in Q4, dropping from $4.71 to $2.12 (-55%). I planned on discussing here why it was worth at least the $10 per share that my recently reduced estimate of fair value claimed, but since then AMC raised more cash against their UK holdings and then the stock took off due to speculative players from reddit.com getting involved, so we sold it all around $14 during the last week of Jan. 2021. This was a modest profit for most clients, but a loss for some others, depending on when the account began, so check your statements to see where you came out. And yes, I recognize it as being a dose of good luck, which I heartily accept from the universe as it seemed somewhat lacking in the portfolio of late. After the sale of AMC in late January 2021, our exposure to the movie theater business is now exclusively in Canada via Cineplex, which has a 75% market share and much less leverage on its balance sheet.”
You can also take a peek at 10 Stocks Reddit’s WallStreetBets is Buying in July 2021 and Top Robinhood Stocks Popular on Reddit.
