In this article we discuss the top Robinhood stocks popular on Reddit. If you want to skip our detailed analysis of these stocks, go directly to the 5 Top Robinhood Stocks Popular on Reddit.
The finance world has been rocked in recent months as retail investors, who strategize on internet platforms like Reddit and initiate trades on stock applications like Robinhood, take center-stage in the battle against hedge funds involved in shorts-selling attempts. According to news publication The New York Times, Robinhood now has more than 13 million active users. The application, which offers commission free stock trades and has an average user age of around 30, is planning to go public soon at a valuation of close to $50 billion.
Similarly, Reddit forums like WallStreetBets, which has more than 10 million users, are the social media platforms of choice for these retail investors to coordinate action against short-selling schemes. The popularity of stocks on these two platforms can offer market experts a glimpse into how these retail investors hope to shape the market dynamics. Some of the stocks presently popular on both platforms include Tesla, Inc. (NASDAQ: TSLA), AMC Entertainment Holdings, Inc. (NYSE: AMC), and GameStop Corp. (NYSE: GME).
Tesla, Inc. (NASDAQ: TSLA), the California-based electric vehicle and clean energy company, was buoyed by Robinhood and Reddit interest in the past months, registering a record rally through the COVID-19 pandemic that saw share price jump more than 700% before slowing down towards the end of April this year. This rally baffled market experts as the firm did not debut flagship new products or dazzle with record vehicle delivery numbers in 2020 because of the coronavirus lockdowns, highlighting the importance of Robinhood and Reddit interest.
One of the most popular stocks on both platforms presently is AMC Entertainment Holdings, Inc. (NYSE: AMC), the movie theatre company. The company is in a short squeeze as Robinhood and Reddit users buy the stock and drive the share price up to the detriment of those trying to short-sell. Over the past three months, the share price of the company has jumped close to 500% and looks set to soar further as hype around the stock increases. Around 4.1 million shareholders presently have stakes in the firm, according to the firm.
On June 10, news publication Financial Times reported that hedge funds had lost $6 billion in bets against meme stocks, a term used to refer to firms popular on Robinhood and Reddit without justifiable cause. One of these meme stocks is GameStop Corp. (NYSE: GME), the video game retailer based out of Texas. GameStop Corp. (NYSE: GME) has jumped more than 1,000% year-to-date and it has remained on the most popular list on both Robinhood and Reddit for the best part of this year.
It remains to be seen who will eventually come out on top in this battle for financial relevance. The momentum seems to be favoring retail investors but big finance has proved over the years that it can adapt to surprises as well. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
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With this context in mind, here is our list of the top Robinhood stocks popular on Reddit. These were ranked keeping in mind the mentions on Reddit forums, the popularity of the stocks on Robinhood, and hedge fund sentiment around these companies.
Top Robinhood Stocks Popular on Reddit
10. Horizon Technology Finance Corporation (NASDAQ: HRZN)
Number of Hedge Fund Holders: N/A
Horizon Technology Finance Corporation (NASDAQ: HRZN) is a company that focuses on investments and lending to science and technology firms working on cutting edge products. It is placed tenth on our list of top Robinhood stocks popular on Reddit. The company has been operating in this space for decades and prioritizes investments in firms that are based in the United States. The firm has a market capitalization of close to $350 million and posted more than $46 million in revenue last year.
Horizon Technology Finance Corporation (NASDAQ: HRZN) is one of the best options in the market when it comes to dividend payments. On April 27, the firm declared a monthly dividend of $0.10 per share, in line with previous. The forward yield was 7.43%.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Two Sigma Advisors is a leading shareholder in Horizon Technology Finance Corporation (NASDAQ: HRZN) with 170,097 shares worth more than $2.4 million.
Just like Tesla, Inc. (NASDAQ: TSLA), AMC Entertainment Holdings, Inc. (NYSE: AMC), and GameStop Corp. (NYSE: GME), Horizon Technology Finance Corporation (NASDAQ: HRZN) is one of the top Robinhood stocks popular on Reddit.
9. Atossa Therapeutics, Inc. (NASDAQ: ATOS)
Number of Hedge Fund Holders: 6
Atossa Therapeutics, Inc. (NASDAQ: ATOS) is a biopharmaceutical company that focuses on drugs related to oncology and infectious diseases. Some of the leading products of the firm include Endoxifen and AT-301. The former is a treatment for breast cancer and the latter is a proprietary drug to improve lung function in those suffering from COVID-19. The firm is ranked ninth on our list of top Robinhood stocks popular on Reddit. The company’s shares have offered investors returns exceeding 2% year-to-date.
Atossa Therapeutics, Inc. (NASDAQ: ATOS) stock has soared more than 80% over the past month and was up more than 16% in a single day on June 22 ahead of a presentation on new breast cancer therapy and inclusion on the Russell 2000 and Russell 3000 indexes by June 28.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Atossa Therapeutics, Inc. (NASDAQ: ATOS) with 3.3 million shares worth more than $6.9 million.
Just like Tesla, Inc. (NASDAQ: TSLA), AMC Entertainment Holdings, Inc. (NYSE: AMC), and GameStop Corp. (NYSE: GME), Atossa Therapeutics, Inc. (NASDAQ: ATOS) is one of the top Robinhood stocks popular on Reddit.
8. Torchlight Energy Resources, Inc. (NASDAQ: TRCH)
Number of Hedge Fund Holders: 4
Torchlight Energy Resources, Inc. (NASDAQ: TRCH) is placed eighth on our list of top Robinhood stocks popular on Reddit. The stock has returned 1,504% to investors over the past twelve months. The company concentrates on the exploration and development of oil and gas properties that offer high profits. Some of the projects the firm has interests in include the Orogrande project and the Hazel project, among others. The former is in Texas while the latter in Oklahoma.
Torchlight Energy Resources, Inc. (NASDAQ: TRCH) stock has been on a record rally the past few months, with the share price increasing three-fold since last month. On June 17, the firm filed to sell close to 100 million shares. Earlier in June, it declared a special dividend.
At the end of the first quarter of 2021, 4 hedge funds in the database of Insider Monkey held stakes worth $3.2 million in Torchlight Energy Resources, Inc. (NASDAQ: TRCH), up from 1 in the previous quarter worth $7,000.
Just like Tesla, Inc. (NASDAQ: TSLA), AMC Entertainment Holdings, Inc. (NYSE: AMC), and GameStop Corp. (NYSE: GME), Torchlight Energy Resources, Inc. (NASDAQ: TRCH) is one of the top Robinhood stocks popular on Reddit.
7. Take-Two Interactive Software, Inc. (NASDAQ: TTWO)
Number of Hedge Fund Holders: 41
Take-Two Interactive Software, Inc. (NASDAQ: TTWO) is a company that makes and sells entertainment products, including video games, around the world. It is ranked seventh on our list of top Robinhood stocks popular on Reddit. The company’s shares have returned 24% to investors in the past year. Some of the famous brands owned by the firm include Rockstar Games, 2K, Private Division, Social Point, and Playdots, among others. These brands offer widely popular games such such as Grand Theft Auto, Max Payne, Midnight Club, and Red D, and others.
On June 3, investment advisory Jefferies upgraded Take-Two Interactive Software, Inc. (NASDAQ: TTWO) stock to Buy from Hold with a price target of $231 on the back of earnings expectations around pipeline timing and product updates.
Out of the hedge funds being tracked by Insider Monkey, Boston-based investment firm Arrowstreet Capital is a leading shareholder in Take-Two Interactive Software, Inc. (NASDAQ: TTWO) with 755,464 shares worth more than $133 million.
Just like Tesla, Inc. (NASDAQ: TSLA), AMC Entertainment Holdings, Inc. (NYSE: AMC), and GameStop Corp. (NYSE: GME), Take-Two Interactive Software, Inc. (NASDAQ: TTWO) is one of the top Robinhood stocks popular on Reddit.
In its Q1 2020 investor letter, Sextant Mutual Funds, an asset management firm, highlighted a few stocks and Take-Two Interactive Software, Inc. (NASDAQ: TTWO) was one of them. Here is what the fund said:
“We mentioned the Xbox, but gamers also need games. We invested in Take-Two last year on the thesis that gaming demonstrates attractive long-term growth opportunities and online distribution would reduce costs and improve margins. With a ready-made excuse to spend eight hours in front of a screen in the basement, such online game delivery must have helped Take-Two.”
6. Nokia Corporation (NYSE: NOK)
Number of Hedge Fund Holders: 21
Nokia Corporation (NYSE: NOK) is a telecommunications company with significant stakes in the information technology and consumer electronics businesses. The firm is based in Finland but has operations in hundreds of countries around the world. Recently, it has stepped up investments in 5G technology to position itself for the future. The company markets Internet of Things (IoT) products as well. It is placed sixth on our list of top Robinhood stocks popular on Reddit. The stock has returned over 31% to investors over the course of the past six months.
On June 24, Nokia Corporation (NYSE: NOK) launched a new 5G portfolio that covers baseband, radio, and MIMO antennas, expanding the coverage of the hyperpast internet technology through a partnership with ReefShark technology.
At the end of the first quarter of 2021, 21 hedge funds in the database of Insider Monkey held stakes worth $352 million in Nokia Corporation (NYSE: NOK), up from 19 in the previous quarter worth $186 million.
Just like Tesla, Inc. (NASDAQ: TSLA), AMC Entertainment Holdings, Inc. (NYSE: AMC), and GameStop Corp. (NYSE: GME), Nokia Corporation (NYSE: NOK) is one of the top Robinhood stocks popular on Reddit.
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Disclose. None. Top Robinhood Stocks Popular on Reddit is originally published on Insider Monkey.
