5 Stocks Both Reddit’s WallStreetBets and Hedge Funds Love

4. NIO Inc. (NYSE: NIO)

Number of Hedge Fund Holders: 28      

NIO Inc. (NYSE: NIO) is a Chinese electric vehicle manufacturer. It is placed fourth on our list of 10 stocks both Reddit’s WallStreetBets and hedge funds love. The company’s shares have offered investors returns exceeding 475% over the course of the past twelve months. NIO is a favorite stock among Redditors and hedge funds. The company has managed to deal with auto supply chain problems better than competitors like Tesla and is expected to have a strong vehicle delivery year. 

On July 1, NIO Inc. (NYSE: NIO) posted vehicle delivery numbers for the month of June, reporting more than 8,000 deliveries, up more than 20% compared to the deliveries in May and representing an increase of 116% year-on-year. 

At the end of the first quarter of 2021, 28 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in NIO Inc. (NYSE: NIO), down from 34 in the preceding quarter worth $2.6 billion.

In its Q2 2020 investor letter, McLain Capital, an asset management firm, highlighted a few stocks and NIO Inc. (NYSE: NIO) was one of them. Here is what the fund said:

“Nio, Inc. (NIO): It’s stock up 360% since the beginning of June on no news, and one of our more troublesome short positions, the Chinese electric vehicle manufacturer is valued at a whopping $17bln on trailing revenue of only $1.1bln. In 2019, the business ran a -17% gross margin, a -140% EBITDA margin & burned ~$1.5bln in cash in 2019. The stock has become one of the most popular stocks among retail traders with approximately 250,000 accounts holding the name just on the popular Robinhood trading platform.”