This article presents an overview of the Reddit’s WallStreetBets is Buying These 5 Stocks for 2024. For a detailed overview of such stocks, read our article, Reddit’s WallStreetBets is Buying These 13 Stocks for 2024.
5. Cloudflare Inc (NYSE:NET)
Number of Hedge Fund Investors: 37
CDN company Cloudflare Inc (NYSE:NET) ranks 5th in our list of the stocks Reddit’s WallStreetBets is buying for 2024.
In November, Oppenheimer gave bullish comments on the stock.
“We think the company is well-positioned to offer edge compute at scale, consolidating compute/security/networking on one infrastructure enabling one common developer platform,” Oppenheimer analysts Timothy Horan and Edward Yang wrote in a note.
Here is what Baron Global Advantage Fund has to say about Cloudflare, Inc. (NYSE:NET) in its Q3 2023 investor letter:
“Our fourth addition during the quarter was to the leading cloud-based networking and software infrastructure, Cloudflare, Inc. Despite continued elongation of sales cycles due to the macro slowdown, the company reported signs of stabilization and noted that the second quarter set a new record for pipeline generation, while deal close rates are improving and sales representative productivity is also moving in the right direction after the go-to-market changes the company implemented in the first quarter.”
4. Novo Nordisk A/S (NYSE:NVO)
Number of Hedge Fund Investors: 51
Novo Nordisk A/S (NYSE:NVO) kept making waves this year due to its potential weight loss drug Ozempic. The stock has gained about 44% year to date. Our survey of various discussion threads on Reddit WallStreetBets showed that retail investors on the social platform were piling into the stock for 2024 and beyond.
Hedge funds also loaded up on the stock. As of the end of the third quarter of 2023, 51 hedge funds out of the 910 tracked by Insider Monkey had stakes in Novo Nordisk A/S (NYSE:NVO) . The biggest stake in Novo Nordisk A/S (NYSE:NVO) is owned by Ken Fisher’s Fisher Asset Management which owns a $1.3 billion stake in Novo Nordisk A/S (NYSE:NVO).
.Polen Focus Growth Strategy made the following comment about Novo Nordisk A/S (NYSE:NVO) in its Q3 2023 investor letter:
“We added new positions in Eli Lilly and Novo Nordisk A/S (NYSE:NVO) in the third quarter. We have been monitoring Lilly and Novo Nordisk for some time, and new clinical results from a recent drug trial give us confidence in the large upside potential for GLP-1s. These results from a Novo Nordisk study showed impressive cardiovascular outcomes for its GLP-1, Wegovy. This study of over 17,000 overweight or obese people with established cardiovascular disease (but without diabetes) showed that Wegovy reduced the likelihood of major adverse cardiovascular events (heart attack, stroke, sudden cardiac death) by over 20% for up to five years. This large and well-controlled trial helps to demonstrate that the weight loss benefits of GLP-1s (likely similar for Mounjaro and Wegovy) lead to better health outcomes for patients and likely save the healthcare system significant amounts of money over the long term. In our view, this makes it very unlikely that payors and governments will deny patient access and reimbursement for these drugs for the long haul (hence the positive stock price moves for Lilly and Novo when the data was released mid-quarter).
We have started with a small 1% position in Lilly, but when paired with our new holding in Novo Nordisk at 2% (NVO is slightly larger as its valuation is lower), it represents a 3% combined position in the two companies we expect to maintain a duopoly in this large drug class over the next several years.
Novo Nordisk has a long history as the leader in diabetes pharmaceuticals. It is much more narrowly focused on diabetes than Lilly with its GLP-1 drugs, Ozempic and Wegovy (Wegovy is the same drug as Ozempic but uses a different name for obesity), driving most of the company’s revenue and earnings growth. The cardiovascular outcomes trial mentioned above is a big positive for Novo. It establishes the duopoly with Lilly in insulin management for Type 2 diabetics and weight loss for the huge number of overweight and obese people across the globe.
Novo has more legacy diabetes products that its newer drugs will cannibalize, but our research indicates that we can expect high-teens earnings per share growth from Novo over the next five years. In addition, both Novo and Lilly have next-generation diabetes and weight loss drugs in development that appear even more effective than the current offerings while also offering new treatment modalities, such as oral drugs versus today’s auto injectables.”
3. Crowdstrike Holdings Inc (NASDAQ:CRWD)
Number of Hedge Fund Investors: 69
Crowdstrike Holdings Inc (NASDAQ:CRWD) ranks 3rd in our list of the best Reddit stocks for 2024 WallStreetBets is piling into.
Susquehanna recently started covering the broader cybersecurity software sector with bullish ratings and talked about several stocks in the space. Crowdstrike Holdings Inc (NASDAQ:CRWD) was one of these stocks. The firm said companies are expected to keep increasing cybersec budgets and spending due to increasing threats to their data.
ClearBridge Multi Cap Growth Strategy made the following comment about CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in its third 2023 investor letter:
“While the Strategy continued to trail the benchmark in the third quarter, the performance gap narrowed due to improvement among our information technology (IT) holdings, notably cyber security software maker CrowdStrike Holdings, Inc. (NASDAQ:CRWD). A lower average market capitalization versus the benchmark, however, remained a headwind as small and mid-cap companies have been more impacted than large caps by tightening liquidity.”
2. NVIDIA Corp (NASDAQ:NVDA)
Number of Hedge Fund Investors: 180
NVIDIA Corp (NASDAQ:NVDA) already saw a blockbuster year in 2023 but Redditors, as well as Wall Street analysts, believe the stock has more room to run.
Ave Maria Focused Fund made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2023 investor letter:
“The Fund added two new positions in the quarter. The Fund initiated a position in Apollo, which grew to be 5.9% of the Fund’s assets by the end of the quarter. The Fund also initiated a small position in NVIDIA Corporation (NASDAQ:NVDA), which is the leading manufacturer of graphic processing units that are the computing power behind much of the artificial intelligence industry environment supporting the broader group of energy infrastructure stocks.”
1. Microsoft Corp (NASDAQ:MSFT)
Number of Hedge Fund Investors: 306
Redditors do not intend to lose any of the AI-fueled gains coming for Microsoft Corp (NASDAQ:MSFT) in the next few months and years. Microsoft Corp (NASDAQ:MSFT) is one of the most popular stocks Redditors have been piling into because of AI catalysts.
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.”
Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also look at the Forget AMC and Gamestop: 10 New Stocks Reddit’s WallStreetBets Is Buying and the 12 Best WallStreetBets Stocks To Buy Now.
