5 Best Stocks to Invest Your $1000 According to Reddit

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In this article, we discuss the 5 best stocks to invest your $1000 according to Reddit. If you want to see more stock picks of Redditors that are geared towards building a $1,000 portfolio, check out the 10 Best Stocks to Invest Your $1000 According to Reddit

5. Snap Inc. (NYSE:SNAP)

Number of Hedge Fund Holders: 44

Snap Inc. (NYSE:SNAP) is a California-based social media company. As of August 26, the stock has lost more than 77% in value year-to-date. Redditors were keen on buying Snap Inc. (NYSE:SNAP) shares on the dip. On August 22, Loop Capital analyst Alan Gould reiterated a ‘Buy’ rating on Snap Inc. (NYSE:SNAP) but lowered the price target on the stock to $19 from $26 as part of a broader research note on digital advertising platforms. The analyst observed that advertising activity has been “somewhat mixed” during the summer, and multiple online businesses that gained during the pandemic are now “comping negative”. The analyst further contended that the monetization at TikTok is having some cannibalization effect on other social media platforms, including Snapchat.

Among the hedge funds tracked by Insider Monkey, 44 funds were bullish on Snap Inc. (NYSE:SNAP) at the end of Q2 2022, compared to 54 funds in the prior quarter. Two Sigma Advisors is a significant position holder in the company, with 14 million shares worth $185 million.  

In its Q4 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Snap Inc. (NYSE:SNAP) was one of them. Here is what the fund said:

“Snap Inc. (NYSE:SNAP) is the leading social network among teens and young adults in North America and a growing number of overseas markets, including Western Europe and India. Shares fell this quarter on a greater-than anticipated impact from Apple’s new privacy changes for iOS mobile devices. These changes made it more difficult for Snapchat to measure the effectiveness of ads shown on its platform. We believe this is a near-term, industry-wide issue for which Snap Inc. (NYSE:SNAP) is already developing a solution. Longer term, we continue to view Snap Inc. (NYSE:SNAP) favorably as the company sustains its rapid pace of product innovation and expands its premium partnerships with advertisers.”

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