In this article, we discuss the 10 Reddit WallStreetBets stocks that are rising.
Internet platforms like Reddit have become all the rage in the finance world over the past few months as retail investors, who favor these platforms and use them for strategizing, become perhaps the single most disruptive force in the stock market. Investment bank Morgan Stanley told investors in a research note at the end of June that retail investors accounted for 10% of the trading volume on the Russell 3000 Index. According to the bank, this value was as high as 15% in September 2020 at the peak of the coronavirus crisis.
One Reddit forum that has been the most influential in shaping market dynamics this year is WallStreetBets. It now has a user base of close to 11 million and recently went private, with only moderators having the power to induct new members to the group. Some of the stocks presently popular on the WallStreetBets forum include Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), NIO Inc. (NYSE: NIO), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), among others.
Hedge funds have been closely following the mentions of stocks in the group over the past few months after a short squeeze initiated by retail investors in January this year led to billions in losses to some of these funds. However, a meme stock crash in July delivered a similar financial blow to retail investors, who pour close to $38 billion into equities everyday, according to data from research firm Refinitiv. As the second quarter draws to a close, some stocks have seen a flurry of retail investor activity. These are discussed in detail below.
The influx of retail investors on the market and the resulting rise of meme stocks has left experts scratching their heads. 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 July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). 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.
Photo by Mohamed Hadji on Unsplash
With this context in mind, here is our list of the 10 Reddit WallStreetBets stocks that are rising. These were ranked keeping in mind the percentage gain the last five days, the hype on Reddit WSB, analyst ratings, hedge fund sentiment, and basic business fundamentals.
Reddit WallStreetBets Stocks That are Rising
10. Qualtrics International Inc. (NASDAQ: XM)
Number of Hedge Fund Holders: 37
Percentage Gain in Last Five Days: 5.33%
Qualtrics International Inc. (NASDAQ: XM) is placed tenth on our list of 10 Reddit WallStreetBets stocks that are rising. The company markets a management platform that lets businesses maintain employee, product, and brand experiences. It is based in Utah. In earnings results for the second quarter, posted on July 20, the company reported earnings per share of $0.04, beating market predictions by $0.06. The revenue over the period was close to $250 million, up 37% year-on-year.
On July 21, investment advisory Deutsche Bank maintained a Buy rating on Qualtrics International Inc. (NASDAQ: XM) stock and raised the price target to $45 from $43, noting the earnings results with accelerated revenue growth as the reason behind the upgrade.
At the end of the first quarter of 2021, 37 hedge funds in the database of Insider Monkey held stakes worth $31.2 billion in Qualtrics International Inc. (NASDAQ: XM).
Just like Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), NIO Inc. (NYSE: NIO), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), Qualtrics International Inc. (NASDAQ: XM) is one of the Reddit WallStreetBets stocks that are rising.
9. Asana, Inc. (NYSE: ASAN)
Number of Hedge Fund Holders: 22
Percentage Gain in Last Five Days: 5.44%
Asana, Inc. (NYSE: ASAN) is ranked ninth on our list of 10 Reddit WallStreetBets stocks that are rising. The company operates a work management platform and is headquartered in California. In earnings results for the first quarter, posted on June 3, the firm reported earnings per share of -$0.21, beating market expectations by $0.07. The revenue over the period was $76 million, up 60% compared to the revenue over the same period last year and beating market predictions by $6.5 million.
On July 15, investment advisory KeyBanc reiterated an Overweight rating on Asana, Inc. (NYSE: ASAN) stock and raised the price target to $75 from $48, identifying work-from-home trends as possible growth catalysts for the firm.
At the end of the first quarter of 2021, 22 hedge funds in the database of Insider Monkey held stakes worth $374 million in Asana, Inc. (NYSE: ASAN), up from 18 the preceding quarter worth $323 million.
Alongside Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), NIO Inc. (NYSE: NIO), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), Asana, Inc. (NYSE: ASAN) is one of the Reddit WallStreetBets stocks that are rising.
8. Novavax, Inc. (NASDAQ: NVAX)
Number of Hedge Fund Holders: 38
Percentage Gain in Last Five Days: 6.57%
Novavax, Inc. (NASDAQ: NVAX) is a Maryland-based biotechnology company that develops and sells vaccines for serious and infectious diseases. It is placed eighth on our list of 10 Reddit WallStreetBets stocks that are rising. The company has a $1.75 billion contract with the US government for the production of a COVID-19 vaccine it has developed. However, the firm reported on August 6 that it expected to submit emergency use authorization of the vaccine in the fourth quarter of 2021.
On August 4, investment advisory Cantor Fitzgerald maintained an Overweight rating on Novavax, Inc. (NASDAQ: NVAX) stock with a price target of $272, underlining that vaccine manufacturing bottlenecks had been resolved by the firm.
At the end of the first quarter of 2021, 38 hedge funds in the database of Insider Monkey held stakes worth 1.2 billion in Novavax, Inc. (NASDAQ: NVAX), up from 37 in the previous quarter worth $1 billion.
In addition to Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), NIO Inc. (NYSE: NIO), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), Novavax, Inc. (NASDAQ: NVAX) is one of the Reddit WallStreetBets stocks that are rising.
7. SoFi Technologies, Inc. (NASDAQ: SOFI)
Number of Hedge Fund Holders: N/A
Percentage Gain in Last Five Days: 6.67%
SoFi Technologies, Inc. (NASDAQ: SOFI) is a financial technology company headquartered in California. It is ranked seventh on our list of 10 Reddit WallStreetBets stocks that are rising. On July 8, Anthony Noto, the CEO of the firm, told news platform CNBC that the company posted a warning to users every time they engaged in a crypto-related trade through the platform of the firm because it took consumer protection seriously. The message warns users of possible volatility with regards to cryptocurrencies.
On June 28, investment advisory Rosenblatt maintained a Buy rating on SoFi Technologies, Inc. (NASDAQ: SOFI) stock with a price target of $30, highlighting that the expiration of a share lock-up and subsequent selling represented a buying opportunity for investors.
SoFi Technologies, Inc. (NASDAQ: SOFI) went public in June through a merger with a special purpose acquisition company. The company is one of the best fintech firms on the market with a market capitalization of more than $13.2 billion.
Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), NIO Inc. (NYSE: NIO), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG) are some of the Reddit WallStreetBets stocks that are rising, just like SoFi Technologies, Inc. (NASDAQ: SOFI).
6. Advanced Micro Devices, Inc. (NASDAQ: AMD)
Number of Hedge Fund Holders: 62
Percentage Gain in Last Five Days: 7.25%
Advanced Micro Devices, Inc. (NASDAQ: AMD) is placed sixth on our list of 10 Reddit WallStreetBets stocks that are rising. The company makes and sells semiconductors and operates from California. The company has benefited from a surge in the prices of semiconductors amid increased demand and supply problems. In earnings results for the first quarter, posted on April 27, the firm reported earnings per share of $0.52, beating market estimates by $0.08. The revenue over the period was $3.4 billion, up 92% year-on-year.
On July 29, investment advisory BMO Capital kept a Market Perform rating on Advanced Micro Devices, Inc. (NASDAQ: AMD) stock but raised the price target to $140 from $130, appreciating the first quarter earnings beat of the firm.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Advanced Micro Devices, Inc. (NASDAQ: AMD) with 25 million shares worth more than $1.9 billion.
Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), NIO Inc. (NYSE: NIO), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG) are some of the Reddit WallStreetBets stocks that are rising, alongside Advanced Micro Devices, Inc. (NASDAQ: AMD).
In its Q4 2020 investor letter, Artisan Partners Limited Partnership, an asset management firm, highlighted a few stocks and Advanced Micro Devices, Inc. (NASDAQ: AMD) was one of them. Here is what the fund said:
“We also exited our positions in Advanced Micro Devices. Our investment campaign in Advanced Micro Devices (AMD) began in the second half of 2018, and we have seen a new management team reinvigorate the company’s product portfolio of microprocessors for PCs and servers, graphics processors, and video game consoles. These new, higher-margin products have helped the company partially close its margin gap with peers and capture share from market leader Intel. While we believe there is meaningful runway for further share gains and margin expansion, AMD has appreciated far beyond our mid-cap market cap mandate, and we exited our position.”
5. Moderna, Inc. (NASDAQ: MRNA)
Number of Hedge Fund Holders: 39
Percentage Gain in Last Five Days: 12.43%
Moderna, Inc. (NASDAQ: MRNA) is ranked fifth on our list of 10 Reddit WallStreetBets stocks that are rising. The firm is based in Cambridge and markets vaccines developed using messenger RNA. At the end of March this year, the firm had 24 development programs and 13 drugs in clinical trials. On August 5, amid reports of the requirement of booster shot of the COVID-19 vaccine, the company revealed that the vaccine it developed had 93% efficacy six months after the administration of the second dose.
On July 15, investment advisory Jefferies maintained a Hold rating on Moderna, Inc. (NASDAQ: MRNA) stock but raised the price target to $250 from $170, backing the firm to beat market expectations on earnings in the second quarter.
At the end of the first quarter of 2021, 39 hedge funds in the database of Insider Monkey held stakes worth $1.6 billion in Moderna, Inc. (NASDAQ: MRNA), down from 41 in the preceding quarter worth $1.4 billion.
In its Q2 2021 investor letter, Baillie Gifford, an asset management firm, highlighted a few stocks and Moderna, Inc. (NASDAQ: MRNA) was one of them. Here is what the fund said:
“Among the top contributors to Fund performance in the second quarter was Moderna. Moderna has just reported its first profitable quarter in the company’s history – net income for the most recent quarter was $1.2 billion. It reported revenue of $1.9 billion, an impressive increase compared to $8 million a year ago, driven by the sales of its Covid-19 vaccine. Moderna is expecting to deliver up to 1 billion vaccine doses in 2021 and is in discussions to increase global supply to governments around the world. Our long-term focus remains on the transformational potential of Moderna’s technology and its ability to address different diseases.”
4. McAfee Corp. (NASDAQ: MCFE)
Number of Hedge Fund Holders: 17
Percentage Gain in Last Five Days: 13.52%
McAfee Corp. (NASDAQ: MCFE) is a software firm that provides cybersecurity solutions. It is placed fourth on our list of 10 Reddit WallStreetBets stocks that are rising. The company is headquartered in California. In earnings results for the first quarter, posted on May 4, the company reported earnings per share of $0.44, beating market estimates by $0.08. The revenue over the period was $773 million, up 12% compared to the revenue over the same period last year and beating predictions by $40 million.
On June 17, investment advisory Mizuho reiterated a Buy rating on McAfee Corp. (NASDAQ: MCFE) stock and raised the price target to $30 from $28, cites recent appreciation of comp multiples as the reason behind the ratings update.
At the end of the first quarter of 2021, 17 hedge funds in the database of Insider Monkey held stakes worth $174 million in McAfee Corp. (NASDAQ: MCFE), down from 20 in the previous quarter worth $257 million.
3. BioNTech SE (NASDAQ: BNTX)
Number of Hedge Fund Holders: 18
Percentage Gain in Last Five Days: 15.14%
BioNTech SE (NASDAQ: BNTX) is a German biotechnology company that develops and markets therapies for cancer and other serious diseases.
On July 19, investment advisory Wolfe Research initiated coverage of BioNTech SE (NASDAQ: BNTX) with an Outperform rating and a price target of $248, noting the oncology drug pipeline for the firm as a possible growth catalyst.
At the end of the first quarter of 2021, 18 hedge funds in the database of Insider Monkey held stakes worth $172 million in BioNTech SE (NASDAQ: BNTX), up from 17 the preceding quarter worth $170 million.
2. Veoneer, Inc. (NYSE: VNE)
Number of Hedge Fund Holders: 13
Percentage Gain in Last Five Days: 23.74%
Veoneer, Inc. (NYSE: VNE) is placed second on our list of 10 Reddit WallStreetBets stocks that are rising. The company operates from Sweden and makes and sells automotive safety electronics. In earnings results for the second quarter, posted on July 23, the firm reported earnings per share of -$0.89, in line with market expectations. The revenue over the period was close to $400 million, up 116% year-on-year. The stock has been surging since late July amid reports of a buyout deal involving Manga International.
On August 1, investment advisory Evercore upgraded Veoneer, Inc. (NYSE: VNE) stock to In Line from Underperform with a price target of $31.25, noting that there was an all-cash takeover bid on the table regarding the firm.
Out of the hedge funds being tracked by Insider Monkey, Sweden-based investment firm Cevian Capital is a leading shareholder in Veoneer, Inc. (NYSE: VNE) with 8 million shares worth more than $196 million.
1. Robinhood Markets, Inc. (NASDAQ: HOOD)
Number of Hedge Fund Holders: N/A
Percentage Gain in Last Five Days: 60.03%
Robinhood Markets, Inc. (NASDAQ: HOOD) is ranked first on our list of 10 Reddit WallStreetBets stocks that are rising. The company owns and runs a financial services platform that is famous for offering low-cost equity trades. The company is based in California. The company went public on July 29 and fetched a valuation of around $29 billion. Some of the trades offered on the Robinhood platform include stocks, exchange-traded funds, options, gold, and cryptocurrencies, among others.
On August 5, investment advisory Wolfe Research initiated coverage of Robinhood Markets, Inc. (NASDAQ: HOOD) stock with a Peer Perform rating and a price target of $45. Steven Chubak, an analyst at the firm, issued the ratings update.
Robinhood Markets, Inc. (NASDAQ: HOOD) has had a volatile run at the market since debuting on the stock market late last month. Trading of the stock has been halted twice in less than a week since then.
You can also take a peek at 15 Best Electric Car Stocks to Buy Now and 10 Real Estate Dividend Stocks to Buy in August 2021.
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Disclosure. None. 10 Reddit WallStreetBets Stocks That are Rising is originally published on Insider Monkey.
