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.”
4. DocuSign, Inc. (NASDAQ:DOCU)
Number of Hedge Fund Holders: 51
DocuSign, Inc. (NASDAQ:DOCU) operates as a cloud software firm. Cloud computing has been a major growth area of the tech sector and retail investors who frequent Reddit forums are starting to realize this, pouring into companies like DocuSign to make quick profits.
On December 3, investment advisory Oppenheimer maintained an Outperform rating on DocuSign, Inc. (NASDAQ:DOCU) stock with a price target of $250, noting that demand for the products of the firm was “normalizing” after a massive surge through 2020.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Tiger Global Management LLC is a leading shareholder in DocuSign, Inc. (NASDAQ:DOCU) with 7.3 million shares worth more than $1.8 billion.
In its Q2 2021 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and DocuSign, Inc. (NASDAQ:DOCU) was one of them. Here is what the fund said:
“DocuSign provides electronic signature solutions. The firm reported an excellent quarter and investors have appreciated the strong growth combined with the excellent margins the company has posted. DocuSign has a long runway of growth ahead and we believe that it remains in a favorable position to continue gaining market share from traditional manual and paper-based signature solutions.”
3. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 60
Tesla, Inc. (NASDAQ:TSLA) makes and sells electric vehicles and clean energy equipment. Tesla has been a Reddit favorite for months and the company still features prominently on the WallStreetBets forum.
Tesla, Inc. (NASDAQ:TSLA) was granted a new patent by US authorities recently. The patent covers the QOS manager, a system used for chip communications. Investment advisory UBS has touted the “software” potential of the firm in a recent investor note as well.
At the end of the third quarter of 2021, 60 hedge funds in the database of Insider Monkey held stakes worth $10 billion in Tesla, Inc. (NASDAQ:TSLA), the same as in the previous quarter worth $9 billion.
Here is what Baron Partners Fund has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q1 2021 investor letter:
“Tesla, Inc. designs, manufactures, and sells fully electric vehicles, solar products, energy storage solutions, and battery cells. The stock fell during the quarter as a result of general market dynamics and a potential production slowdown due to parts shortages. A refreshed S/X and China Model Y ramp could also have a negative impact on margins in early 2021. We anticipate strong growth and improved margins driven by new production capacity, manufacturing efficiencies, localization of its manufacturing and supply chain, and maturation of Tesla’s full self-driving technology.”
2. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 65
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor firm based in California. A lot of discussion around chipmakers on the WallStreetBets forum centers on AMD since the firm has solid fundamentals and tremendous growth potential.
Advanced Micro Devices, Inc. (NASDAQ:AMD) posted earnings for the third quarter on October 26, reporting earnings per share of $0.73, beating predictions by $0.07. The revenue over the period was $4.3 billion, up 53% year-on-year.
Among 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 12 million shares worth more than $1.3 billion.
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.”
1. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 66
Intel Corporation (NASDAQ:INTC) makes and sells essential tech for smart devices. Redditors have hailed the massive investments that Intel is making into chip manufacturing to compete with Chinese chip makers in the long run.
Northland analyst Gus Richard recently upgraded Intel Corporation (NASDAQ:INTC) stock to Market Perform from Underperform with a price target of $49, noting that Intel could become a Western alternative to Chinese chip makers under a new expansion plan.
At the end of the third quarter of 2021, 66 hedge funds in the database of Insider Monkey held stakes worth $6.4 billion in Intel Corporation (NASDAQ:INTC), down from 78 in the previous quarter worth $6.7 billion.
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