In this article, we discuss 10 WallStreetBets stocks that are gaining in August.
Retail investors have remained resilient despite severe market volatility, broad equity sell-offs, crushing inflation, and recession threats. A July 2022 survey by eToro suggests that two-thirds of the US retail investors did not participate in the stock market sell-off despite extreme turbulence. Retail investors seem adamant to stay afoot and participate in trading, and they appear to be focusing on long-term investment strategies and financial security.
Vanda Research said on May 25 that retail investors are diving into the stock market at a pace similar to the meme stock frenzy of 2021, despite the returns on retail investments being at multi-year lows due to broader equity sell-offs and rampant interest rate hikes. Retail traders invested a total of $76 billion in the stock market during the three months ending May 24, which equals $1.3 billion per day on average.
Reddit’s WallStreetBets community is perhaps the largest investing forum on the platform, where retail investors discuss their trades and exchange stock market strategies. WallStreetBets has given rise to multiple meme stocks, and the strength of the retail investors was fully comprehended by Wall Street in 2021, when Redditors poured into GameStop Corp. (NYSE:GME) amid short squeeze warnings and elite hedge funds lost billions as a result.
Some of the WallStreetBets stocks gaining in August include Carvana Co. (NYSE:CVNA), Bed Bath & Beyond Inc. (NASDAQ:BBBY), and The Walt Disney Company (NYSE:DIS).
Photo by Annie Spratt on Unsplash
Our Methodology
We scoured Reddit WallStreetBets forum, selecting the stocks that have reaped share price gains for retail investors in the last week. We have mentioned the share price appreciation in the last month as of August 12 for all securities.
The list is ranked according to the 1-month share price gains, from smallest to largest.
WallStreetBets Stocks Gaining in August
10. Veru Inc. (NASDAQ:VERU)
Number of Hedge Fund Holders: 9
Share Price Gain in the Last Month as of August 12: 19.70%
Veru Inc. (NASDAQ:VERU) is a Florida-based oncology biopharmaceutical company that develops medicines for managing cancers. On August 11, the stock gained 20.4% as investors overlooked the company’s Q2 earnings and revenue miss, and instead focused on the future upside from potential emergency use approvals for its COVID-19 treatment, Sabizabulin. An emergency use for Sabizabulin would be a tailwind for Veru Inc. (NASDAQ:VERU). The stock has climbed about 20% in the last month as of August 12.
Cantor Fitzgerald analyst Brandon Folkes on August 11 raised the price target on Veru Inc. (NASDAQ:VERU) to $30 from $24 and kept an Overweight rating on the shares after the company reported June quarter results. The analyst told investors that the price target increase was prompted by the probability of success of Veru Inc. (NASDAQ:VERU)’s EUA of Sabizabulin for the treatment of hospitalized COVID-19 patients. He has been conservative about the potential for any smaller company to achieve a COVID EUA approval in the United States, despite what he sees as robust data from Veru Inc. (NASDAQ:VERU).
According to Insider Monkey’s data, 9 hedge funds reported owning stakes in Veru Inc. (NASDAQ:VERU) at the end of Q1 2022, compared to 8 funds in the last quarter. Joseph Edelman’s Perceptive Advisors is the leading position holder in the company, with 4.3 million shares worth $21 million.
In addition to Carvana Co. (NYSE:CVNA), Bed Bath & Beyond Inc. (NASDAQ:BBBY), and The Walt Disney Company (NYSE:DIS), the WallStreetBets community is actively piling into Veru Inc. (NASDAQ:VERU).
9. Alpha and Omega Semiconductor Limited (NASDAQ:AOSL)
Number of Hedge Fund Holders: 18
Share Price Gain in the Last Month as of August 12: 30.34%
Alpha and Omega Semiconductor Limited (NASDAQ:AOSL) was incorporated in 2000 and is headquartered in Sunnyvale, California. The company designs and develops semiconductor products for computing, consumer electronics, communication, and industrial end-markets in Hong Kong, China, South Korea, the United States, and internationally. On August 11, the stock climbed 10% on the back of FQ4 results that exceeded Wall Street consensus. Alpha and Omega Semiconductor Limited (NASDAQ:AOSL) reported an EPS of $0.95, beating estimates by $0.09. The revenue of $193.96 million, up 9.4% year over year, outperformed market consensus by $3.96 million. In FQ1 2023, the company expects revenue to be $210 million, plus or minus $3 million. Alpha and Omega Semiconductor Limited (NASDAQ:AOSL) is one of the stocks leading gains on WallStreetBets in August.
Benchmark analyst David Williams on August 11 maintained a Buy rating on Alpha and Omega Semiconductor Limited (NASDAQ:AOSL) but lowered the price target on the shares to $60 from $70. The company is executing well with surprising resilience despite the worsening consumer backdrop where it has significant exposure, and the analyst remains convinced about the longer-term growth story and ongoing fundamental improvements at Alpha and Omega Semiconductor Limited (NASDAQ:AOSL). He views the quarter’s performance and guidance as evidence of the optimal positioning of Alpha and Omega Semiconductor Limited (NASDAQ:AOSL)’s products and its manufacturing scalability.
According to Insider Monkey’s data, 18 hedge funds were bullish on Alpha and Omega Semiconductor Limited (NASDAQ:AOSL) at the end of Q1 2022, compared to 21 funds in the prior quarter. Jim Simons’ Renaissance Technologies is the largest stakeholder of the company, with 345,700 shares valued at about $19 million.
8. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 113
Share Price Gain in the Last Month as of August 12: 30.80%
The Walt Disney Company (NYSE:DIS) is an American multinational mass media and entertainment conglomerate. The Walt Disney Company (NYSE:DIS) has been trending among the WallStreetBets community recently, as Redditors load up on gains. The stock has climbed about 31% in the last month as of August 12. The company posted its Q2 2022 results on August 10, reporting earnings per share of $1.09 and a revenue of $21.5 billion, outperforming Wall Street consensus by $0.10 and $490 million, respectively.
On August 11, Goldman Sachs analyst Brett Feldman raised the price target on The Walt Disney Company (NYSE:DIS) to $140 from $130 and maintained a Buy rating on the shares after the company’s “across the board financial beat” in FQ3, which was supported by peak Parks profitability that sufficiently offset higher losses in DTC. Disney+ net ads of 14.4 million reflect a “material beat” and the analyst expects an optimistic response to The Walt Disney Company (NYSE:DIS)’s revised FY24 Disney+ subscriber ambitions and its price increases across various streaming services in the United States and Canada.
Among the hedge funds tracked by Insider Monkey, 113 funds were bullish on The Walt Disney Company (NYSE:DIS) at the end of March 2022, up from 111 funds in the prior quarter. David Goel and Paul Ferri’s Matrix Capital Management is the largest shareholder of the company, with 6.33 million shares worth $868.2 million.
Here is what Oakmark Fund has to say about The Walt Disney Company (NYSE:DIS) in its Q2 2022 investor letter:
“Disney (NYSE:DIS) is one of the most beloved consumer companies in the world. Its media business has a rich library of intellectual property, which provides a powerful engine for creating new content across the Disney, Pixar, Marvel, and Star Wars brands. This content also contributes to the success of Disney’s theme parks, which generated nearly half the company’s earnings and grew more than 10% annually in the decade prior to the pandemic. Shares have fallen nearly 50% over the past year as investors worried about the company’s ability to transition its media business to a direct-to-consumer streaming world. This transition has required management to make investments in its Disney+ streaming service that are depressing profitability today. However, we believe these investments will ultimately produce attractive returns as Disney+ continues to grow subscribers and increase pricing over time. As a result, we were able to purchase shares at a substantial discount to our estimate of intrinsic value.”
7. Roblox Corporation (NYSE:RBLX)
Number of Hedge Fund Holders: 40
Share Price Gain in the Last Month as of August 12: 37.94%
Roblox Corporation (NYSE:RBLX) is a California-based company that operates an online entertainment platform. On August 9, Roblox Corporation (NYSE:RBLX) reported earnings for the second quarter of 2022. The company announced a loss per share of $0.30, missing market consensus by $0.04. The Q2 revenue also dropped 3.84% year over year to roughly $640 million, but it exceeded analysts’ predictions by $13.68 million. Roblox Corporation (NYSE:RBLX) is popular among Redditors these days, and the stock has gained about 38% in the last month as of August 12.
On August 12, Deutsche Bank analyst Benjamin Black raised the price target on Roblox Corporation (NYSE:RBLX) to $52 from $45 and kept a Buy rating on the shares. The Q2 macro setup for Roblox Corporation (NYSE:RBLX) was not easy given how much the shares had gained since the end of May, but despite the “muted” stock reaction, the underlying fundamentals and management’s comments from the earnings call gave him incremental confidence in the topline trajectory, the analyst told investors.
According to Insider Monkey’s Q1 data, 40 hedge funds were long Roblox Corporation (NYSE:RBLX), down from 61 funds in the prior quarter. Cathie Wood’s ARK Investment Management held the leading stake in the company, with more than 6 million shares worth $281.7 million.
Here is what Tao Value has to say about Roblox Corporation (NYSE:RBLX) in its Q4 2021 investor letter:
“Roblox (RBLX) got significant more attention from both institutional & retail investors after Facebook announced to rename itself as Meta Platforms. I believe the price appreciation is largely attributed to the increased attention. On the business side, Roblox rolled out a few successful music events and also partnered with Netflix on testing long-form media consumption in the virtual world. Apple in its iOS 14.5 rolled out an impactful change for the digital advertising landscape by requiring all apps to ask users to “opt in”.
6. Plug Power Inc. (NASDAQ:PLUG)
Number of Hedge Fund Holders: 33
Share Price Gain in the Last Month as of August 12: 61.86%
Plug Power Inc. (NASDAQ:PLUG) is a New York-based provider of clean hydrogen and fuel cell solutions for supply chain applications, electric vehicles, and the stationary power market in North America and internationally. The company reported a bigger than forecasted Q2 loss and the revenue also came in below Wall Street consensus, while Plug Power Inc. (NASDAQ:PLUG) reiterated full-year sales guidance. Plug Power Inc. (NASDAQ:PLUG) also issued in-line guidance for FY 2022 revenues of $900 million to $925 million, versus a $915 million consensus.
Wells Fargo analyst Michael Blum on August 11 raised the price target on Plug Power Inc. (NASDAQ:PLUG) to $29 from $19 and reaffirmed an Equal Weight rating on the shares. The analyst observed that Plug Power Inc. (NASDAQ:PLUG) announced “light” Q2 earnings while maintaining short-term and long-term guidance goals, adding that Plug Power Inc. (NASDAQ:PLUG) quickened its timeline for profitability to 2024 from 2025 due to the proposed Inflation Reduction Act.
According to Insider Monkey’s data, 33 hedge funds were bullish on Plug Power Inc. (NASDAQ:PLUG) at the end of Q1 2022, up from 23 funds in the earlier quarter. D E Shaw is a prominent shareholder of the company, with 5.25 million shares worth $150.2 million.
Like Carvana Co. (NYSE:CVNA), Bed Bath & Beyond Inc. (NASDAQ:BBBY), and The Walt Disney Company (NYSE:DIS), Plug Power Inc. (NASDAQ:PLUG) is one of the WallStreetBets stocks that has climbed in August.
5. Heron Therapeutics, Inc. (NASDAQ:HRTX)
Number of Hedge Fund Holders: 20
Share Price Gain in the Last Month as of August 12: 76.08%
Heron Therapeutics, Inc. (NASDAQ:HRTX) is a California-based biotechnology company, engaged in formulating treatments for unmet needs for cancer patients. Redditors are pouring into Heron Therapeutics, Inc. (NASDAQ:HRTX) lately and the stock has climbed about 76% in the last month as of August 12.
The stock traded 16% higher on August 9 after Heron Therapeutics, Inc. (NASDAQ:HRTX) posted above-consensus earnings and revenue in Q2 2022. The company expects Q3 2022 net product sales for ZYNRELEF, its postoperative pain drug, to increase by 40% to 50% compared to the prior quarter. Additionally, cost cutting activities are forecasted to result in over $50 million in reductions in annual operating expenses in 2023.
According to Insider Monkey’s data, 20 hedge funds were bullish on Heron Therapeutics, Inc. (NASDAQ:HRTX) at the end of Q1 2022, compared to 19 funds in the earlier quarter. Julian Baker and Felix Baker’s Baker Bros. Advisors is the leading stakeholder of the company, with 8.13 million shares worth $46.5 million.
4. Invitae Corporation (NYSE:NVTA)
Number of Hedge Fund Holders: 29
Share Price Gain in the Last Month as of August 12: 82.65%
Invitae Corporation (NYSE:NVTA) was incorporated in 2010 and is headquartered in San Francisco, California. It is a medical genetics company that offers genetic tests for hereditary cancer, cardiology, neurology, pediatrics, oncology, metabolic conditions, and rare diseases. The stock has gained about 83% in the last month and retail investors on Reddit’s WallStreetBets are actively loading up on Invitae Corporation (NYSE:NVTA). On August 10, Invitae Corporation (NYSE:NVTA) stock jumped 57% on the back of market beating Q2 2022 earnings and a reaffirmation of 2022 guidance.
On August 10, JPMorgan analyst Julia Qin downgraded Invitae Corporation (NYSE:NVTA) to Underweight from Neutral and withdrew her earlier price target after the company posted Q2 results in line with the latest pre-announcement and reaffirmed FY22 guidance for low double-digit percentage revenue growth. It continues to be seen if the recently announced restructuring will affect patterns over the coming few quarters and uncertainties prevail around execution over the next 12-18 months, added the analyst. She would like to see more evidence on the efficiency of the restructuring as well as the robustness of the retained businesses to be more constructive on the story.
Among the hedge funds tracked by Insider Monkey, Cathie Wood’s ARK Investment Management is the leading shareholder of the company, with 27.6 million shares worth $220.6 million. Overall, 29 hedge funds were long Invitae Corporation (NYSE:NVTA) at the end of Q1 2022, up from 24 funds in the prior quarter.
3. Bionano Genomics, Inc. (NASDAQ:BNGO)
Number of Hedge Fund Holders: 6
Share Price Gain in the Last Month as of August 12: 130.77%
Bionano Genomics, Inc. (NASDAQ:BNGO) is a California-based company that offers genome analysis software solutions. The stock has climbed a whopping 131% in the last month as of August 12. Retail investors have been piling into Bionano Genomics, Inc. (NASDAQ:BNGO) lately, and the WallStreetBets community is abuzz with gains from this trade. On August 11, the stock jumped 36% on the back of a published study regarding the use of optical genome mapping offered by Bionano Genomics, Inc. (NASDAQ:BNGO) in the analysis of certain genetically-driven disorders.
On July 18, Oppenheimer analyst Francois Brisebois assumed coverage of Bionano Genomics, Inc. (NASDAQ:BNGO) with an Outperform rating and a $12 price target given a reallocation of the firm’s analyst resources.
According to Insider Monkey’s Q1 data, Bionano Genomics, Inc. (NASDAQ:BNGO) was part of 6 hedge fund portfolios at the end of Q1 2022, compared to 11 funds in the prior quarter. Ken Griffin’s Citadel Investment Group is the leading position holder in the company, with 772,362 shares worth about $2 million.
2. Carvana Co. (NYSE:CVNA)
Number of Hedge Fund Holders: 48
Share Price Gain in the Last Month as of August 12: 148.45%
Carvana Co. (NYSE:CVNA) is an Arizona-based company that operates an e-commerce platform for buying and selling used cars in the United States. On August 4, the company reported earnings for the second quarter of 2022, posting a loss per share of $2.35 and a revenue of $3.88 billion, falling short of Wall Street consensus by $0.47 and $110 million, respectively. Despite the below consensus Q2 results, Carvana Co. (NYSE:CVNA) stock has gained 148.45% in the last month as of August 12.
Deutsche Bank analyst Emmanuel Rosner on August 8 reiterated a Hold rating on Carvana Co. (NYSE:CVNA) and lowered the price target on the shares to $42 from $54. Despite what continues to be a very tough operational backdrop, Carvana Co. (NYSE:CVNA) reported strong improvement across retail units sold and revenue in Q2, the analyst told investors in a research note. However, in the short-term, the stock will continue to trade like a “show-me” story, noted the analyst.
According to Insider’s Monkey, 48 hedge funds were bullish on Carvana Co. (NYSE:CVNA) at the end of March 2022, compared to 56 funds in the preceding quarter. Chase Coleman’s Tiger Global Management is the biggest position holder in the company, with 8.5 million shares worth over $1 billion.
Here is what Saga Partners has to say about Carvana Co. (NYSE:CVNA) in its Q1 2022 investor letter:
“I first wrote about Carvana in this 2019 write-up. I initially explained Carvana’s business, superior value proposition compared to the traditional dealership model, attractive unit economics, and how they were uniquely positioned to win the large market opportunity.
Since then, Carvana has by far exceeded even my most optimistic initial expectations. While the company did benefit following COVID in the sense that customers’ willingness to buy and sell cars through an online car dealer accelerated, the operating environment over the last two years has been very challenging. Carvana executed exceedingly well considering the shifting customer demand in what is a logistically intensive operation and what has been a tight inventory environment due to supply chain issues restricting new vehicle production.
Shares have come under pressure following their first quarter results, which reflected larger than expected losses. The quarter was negatively impacted by a combination of COVID-related logistical issues in their network that started towards the end of the fourth quarter as Omicron cases spread. Employee call off rates related to Omicron reached an unprecedented 30% that led to higher costs and supply chain bottlenecks. As less inventory was available due to these problems, it led to less selection and longer delivery times, lowering customer conversion rates.
Additionally, interest rates increased at a historically fast rate during the first quarter which negatively impacted financing gross profits. Carvana originates loans for customers and then sells them to investors at a later date. If interest rates move materially between loan origination and ultimately selling those loans, it can impact the margin Carvana earns on underwriting those loans…” (Click here to see the full text)
1. Bed Bath & Beyond Inc. (NASDAQ:BBBY)
Number of Hedge Fund Holders: 15
Share Price Gain in the Last Month as of August 12: 154.92%
Bed Bath & Beyond Inc. (NASDAQ:BBBY), an American retailer of bath and body products, has been one of the most popular trades among Redditors as of late. The stock has gained about 155% in the last month amid the meme stock frenzy. On August 9, Baird analyst Justin Kleber downgraded Bed Bath & Beyond Inc. (NASDAQ:BBBY) to Underperform from Neutral with an unchanged price target of $4. The shares have climbed 148% since July 27, the analyst told investors. The analyst said the rally has been “driven by non-fundamentally focused market participants”. With market share losses increasing and Bed Bath & Beyond Inc. (NASDAQ:BBBY) “burning cash,” the stock’s fundamental risk/reward looks unattractive, added Kleber.
Among the hedge funds tracked by Insider Monkey, John Overdeck and David Siegel’s Two Sigma Advisors is a significant stakeholder of the company, with 915,474 shares worth $20.6 million. Overall, 15 hedge funds were bullish on the stock at the end of March 2022, compared to 17 funds in the preceding quarter.
Here is what Miller Value Partners Income Strategy has to say about Bed Bath & Beyond Inc. (NASDAQ:BBBY) in its Q2 2022 investor letter:
“Bed Bath & Beyond 5.165% 08/2044 declined 67.4% in the period. Bed Bath & Beyond reported 4Q21 sales of $2.05 billion, down 22% Y/Y, missing consensus of $2.08 billion. The company lost $0.92 per share in the quarter, down from 4Q20 adjusted EPS of $0.40, below analyst expectations for EPS of $0.03. Management noted supply chain disruptions and the Omicron variant led to inventory availability challenges, which had an estimated sales impact of $175 million, or 8.5% of 4Q21 net sales, and a 400 basis points (bps) Y/Y contraction in 4Q21 adjusted gross margin to 28.8%, driven by product cost increases and higher than anticipated freight and shipping costs. Additional headwinds in the quarter included general weakness in the retail segment, highlighted by big earnings misses from Walmart and Target, along with Moody’s downgrading Bed Bath’s corporate family rating from B1 to B2. The ratings agency cited increased execution risk of the company’s strategic turnaround initiatives and ongoing supply chain issues weighing on the company’s market share and profitability going forward as the main drivers for the downgrade. However, Moody’s maintained a stable outlook for the retailer due to the financial flexibility provided by the company’s liquidity position and low level of funded debt.”
You can also take a look at 10 Buy-The-Dip Restaurant Stocks to Invest In Now and 10 Best Stocks For Inflation According to Redditors.
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Disclosure: None. 10 WallStreetBets Stocks Gaining in August is originally published on Insider Monkey.
