This article presents an overview of the 5 Best Reddit Stocks to Buy Now. For a detailed overview of such stocks, read our article, 13 Best Reddit Stocks to Buy Now.
5. Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM)
Number of Hedge Fund Investors: 105
Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) is one of the most popular stocks on Reddit for 2024 and beyond. Redditors believe Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) is undervalued. One Redditor said on a latest discussion thread that Taiwan Semiconductor Mfg. Co. Ltd.’s (NYSE:TSM) “realistic” valuation is $1 trillion. Here’s another comment on Reddit that sums up the bullish thesis of many retail investors on the social media platform:
“TSM not only builds the largest chip designer chips, but they’ll be building the chips for Amazon, Google, Meta, etc etc
And they should have the Arizona fab up soon along with the Germany fab. Then the more advanced fabs up by 2027. They’ve prepared for the CAPEX and are positioned well.”
As of the end of the fourth quarter of 2023, 105 hedge funds tracked by Insider Monkey had stakes in Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM).
Polen International Growth Strategy stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its fourth quarter 2023 investor letter:
“The largest relative detractors to the Portfolio’s performance during the fourth quarter were Aon Plc, Unilever Plc, and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) (not owned). Though we do not currently own it in the Portfolio, Taiwan Semiconductor was one of the larger relative detractors from performance during the quarter due to its strong performance and comparatively greater index weight.”
4. Alibaba Group Holding Ltd – ADR (NYSE:BABA)
Number of Hedge Fund Investors: 116
Alibaba Group Holding Ltd – ADR (NYSE:BABA) is one of the best Reddit stocks to buy in 2024 since a majority of Redditors in investing-related subreddits believe the Chinese ecommerce company is undervalued mainly due to the volatility and uncertainty in China, which they think is a temporary factor.
Out of the 933 hedge funds in Insider Monkey’s database, 116 hedge funds had stakes in Alibaba Group Holding Ltd – ADR (NYSE:BABA) as of the end of the fourth quarter of 2023.
Baron Emerging Markets Fund stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its fourth quarter 2023 investor letter:
“Alibaba Group Holding Limited (NYSE:BABA) is the largest retailer and e-commerce company in China. Alibaba operates shopping platforms Taobao and Tmall and owns 33% of Ant Group, which operates Alipay, China’s largest third-party online payment provider. Shares of Alibaba were down in the fourth quarter due largely to the delay of the previously announced spin-off of its cloud division. Quarterly results were roughly in line with Street expectations, with strength in profitability. We retain conviction that Alibaba is well positioned to benefit from the ongoing growth in online commerce and cloud development in China. While the company is seeing early progress in its efforts to re-invigorate customer engagement and retention as well as merchant investment initiatives, we believe this investment will likely take some time to flow through to accelerating earnings growth. As such, we remain investors but have reduced our position as we monitor further progress.”
3. Alphabet Inc (NASDAQ:GOOG)
Number of Hedge Fund Investors: 166
While Redditors believe Alphabet Inc (NASDAQ:GOOG) might need a serious restructuring and efficiency push, they do think Alphabet Inc (NASDAQ:GOOG) stock is undervalued and the fears around Alphabet Inc (NASDAQ:GOOG) search business are overdone. Redditors think Alphabet Inc (NASDAQ:GOOG) has a lot of headway in the AI race. They also like Alphabet’s (NASDAQ:GOOG) Cloud business and YouTube. Retail investors on Reddit also point out that many AI search engines are using Alphabet Inc Class C’s (NASDAQ:GOOG) data to answer user queries.
The FPA Crescent Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its fourth quarter 2023 investor letter:
“Alphabet Inc. (NASDAQ:GOOG) continued going from strength to strength during 2023 despite concerns that competition may infringe on the company’s dominant position in Search. Thus far, Alphabet has continued to hold its own, and we look forward to seeing how the company incorporates further AI developments across the Alphabet ecosystem. Lastly, we are hopeful that the impending arrival of a new CFO will bring a renewed focus on efficiency – an area where we believe Alphabet has ample room for improvement.”
2. Meta Platforms Inc (NASDAQ:META)
Number of Hedge Fund Investors: 242
Meta makes it to the list of the best Reddit stocks to buy because of its huge AI-related investments, thriving ads business and its market leading position in the social media platforms industry. Redditors thinks elections in 2024 would bode well for Meta Platforms Inc (NASDAQ:META) amid rising ad spending. Many Redditors grilled the short-term approach of the market in the past where investors thought Facebook usage was down and Meta Platforms Inc (NASDAQ:META) was lagging behind in innovation and growth. Later events proved Mark Zuckerberg had a long-term vision and he played the AI card smartly.
SaltLight Capital stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its fourth quarter 2023 investor letter:
“Meta Platforms, Inc.’s (NASDAQ:META) primary mission is all about capitalising on user engagement and maintaining its network effects. AI is augmenting their objectives in two ways: 1) Improving engagement time per daily active user (AI Job One) 2) Matching ad buyers (advertisers) with ad consumers (AI Job Two)
Improving Engagement Time per Daily Active User Meta is in the business of making sure that when you’re scrolling through your feed or watching videos, you’re glued to the screen as long as possible. Why? Because the longer you watch, the more ads they can slip into your viewing experience (think of digital billboards). But these ‘digital billboards’ are a finite resource – only more engagement time creates them.
And here’s where the magic of ‘AI job one’ comes in – finding that perfect video that keeps you hooked – thereby increasing the time you spend on the platform. It’s a cycle that feeds itself: more engagement means more opportunities to serve ads, which in turn means more revenue…” (Click here to read the full text)
1. Amazon.com Inc (NASDAQ:AMZN)
Number of Hedge Fund Investors: 293
Amazon.com Inc (NASDAQ:AMZN) is easily one of the best stocks to buy in 2024 according to Reddit. Redditors believe Amazon.com Inc’s (NASDAQ:AMZN) Cloud business makes it an AI play. Some of the biggest catalysts for Amazon.com Inc (NASDAQ:AMZN) stock include Amazon.com Inc’s (NASDAQ:AMZN) growing ads business, logistics, Amazon Prime, in addition to ecommerce and Cloud. Many Redditors in investing-related subreddits said Amazon.com Inc’s (NASDAQ:AMZN) biggest moat is its Cloud business since it’s extremely difficult and costly for companies to shift from one Cloud platform to another.
Amazon.com Inc (NASDAQ:AMZN) is one of the most popular stocks among elite money managers as Insider Monkey’s database shows that 293 hedge funds had stakes in Amazon.com Inc (NASDAQ:AMZN).
Alger Spectra Fund stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its fourth quarter 2023 investor letter:
“Amazon.com, Inc. (NASDAQ:AMZN) is a well-known online retailer and cloud computing leader. The company’s Amazon Web Services (AWS) business provides utility-scale cloud offerings that facilitate corporate America’s transition to digital systems. During the quarter, shares contributed to performance as Amazon reported strong fiscal third quarter results, where the company beat sales and earnings estimates. Moreover, AWS growth remained steady. contributing to Amazon’s better-than-expected operating income despite concerns around cloud cost optimizations, showing signs of increasing net new cloud workloads. While management noted that customers remain price-conscious and focused on deals, demand remains strong across all segments, leading the company to raise their fiscal fourth quarter revenue and operating income guidance.”
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