5 New Stocks Reddit’s WallStreetBets is Buying

In this article, we discuss the 5 new stocks Reddit’s WallStreetBets is buying. If you want to read our detailed analysis of these stocks, go directly to 10 New Stocks Reddit’s WallStreetBets is Buying. 

5. Ford Motor Company (NYSE:F)

Number of Hedge Fund Holders: 51  

Ford Motor Company (NYSE:F) is an automotive firm based in Michigan. Retail investors on Reddit have started taking note of the stock as the company emerges as a major player in the EV market and perhaps the biggest Tesla competitor in the United States. 

Investment bank Morgan Stanley has forecast that Ford Motor Company (NYSE:F) is poised to reach over 1 million in EV unit sales by the end of this decade based on current growth numbers. 

At the end of the third quarter of 2021, 51 hedge funds in the database of Insider Monkey held stakes worth $1.6 billion in Ford Motor Company (NYSE:F), down from 55 in the preceding quarter worth $2.1 billion.

In its Q1 2020 investor letter, Greenlight Capital Fund, an asset management firm, highlighted a few stocks and Ford Motor Company (NYSE:F) was one of them. Here is what the fund said:

“General Motors (GM) was a disappointment. The damage from last year’s strike consumed most of the cash flow GM would have otherwise generated in 2019. We had expected a strong bounce back in earnings and cash flow in 2020, but the annual guidance, while meeting Wall Street expectations, was worse than we expected. Further, the cash burned during the strike needed to be re-earned in order to protect GM’s investment grade rating. Pre-crisis, there would have been, at best, a minimal share repurchase late in the year. At the analyst day, our hopes that 2020 would finally be the year were dashed. We sold our stock. Over our five-year holding period, we made a 9.6% IRR on GM. In the difficult environment, its most comparable peer, Ford, lost about half its value.”