We recently published a list of 12 Best WallStreetBets Stocks To Buy According to Hedge Funds. In this article, we are going to take a look at where Build-A-Bear Workshop, Inc. (NYSE:BBW) stands against other best WallStreetBets stocks to buy according to hedge funds.

The World Economic Forum’s Global Retail Investor Outlook 2024 highlighted a sustained transition towards younger retail investors. The research, which spans 13 economies, reflects that 30% of Gen Z start investing in early adulthood, against 9% of Gen X and 6% of Baby Boomers. By the time they enter the workforce, the research demonstrated that 86% of Gen Z have learned about personal investing as compared to 47% of Boomers, highlighting a generational transformation in financial habits.

Current Retail Investor Trends

WEF’s survey mentions that retail investors continue to view cryptocurrency as more understandable and easier as compared to traditional investments such as ETFs, MFs, stocks, and bonds. As per the research, 29% tend to avoid stocks because of a lack of understanding, while only 24% mention the same regarding crypto. Interestingly, among the investors aged under 44 holding cryptocurrencies, over half allocated at least a third of their portfolio to it.

Furthermore, WEF’s research mentioned that financial priorities have been pivoting towards short-term needs. In 2024, 51% of investors focused on emergency savings, reflecting an increase from 41% in 2022, while those who emphasized having sufficient to retire declined from 48% to 42%. As per Dean Frankle, Managing Director and Partner, BCG, individual participation in capital markets can result in long-term financial well-being.

READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.

Retail Investors Continue to Pump Billions

Bloomberg reported that individual investors are becoming relentless when it comes to investing money in the volatile US markets. The firm, while quoting JPMorgan Chase & Co.’s Emma Wu, mentioned that considering the continuous dip-buying strategy throughout the crash, there are estimates that retail traders’ portfolios remain far from breakeven. However, individual investors’ strategy of “buy-the-dip” amidst trade fears has been doing better as compared to the broader market.

Interestingly, retail investors invested US$11 billion in equities since April 2, when Trump’s administration revealed reciprocal levies, reported Bloomberg, while citing data through Wednesday’s close (April 9, 2025). Bloomberg also highlighted that individual investors continue to dip their toes into stocks, while well-established institutional investors are rotating into international markets and less risky assets, including Treasuries.

Our Methodology

To list the 12 Best WallStreetBets Stocks To Buy According to Hedge Funds, we sifted through the WallStreetBets forum on Reddit and chose the trending ones. Next, we shortlisted the ones that are popular among hedge funds. Finally, the stocks are ranked in ascending order of their hedge fund sentiments, as of Q4 2024.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Build-A-Bear Workshop, Inc. (NYSE:BBW)

Number of Hedge Fund Holders: 22

Build-A-Bear Workshop, Inc. (NYSE:BBW) operates as a multi-channel retailer of plush animals and related products. The company has been prioritizing its long-term strategic initiatives, and it has mainly focused on broadening its global retail footprint. In FY 2024, Build-A-Bear Workshop, Inc. (NYSE:BBW) launched 64 net new retail units, the majority of which were asset-light partner-operated locations, enhancing its international presence to over 25 countries. For FY 2025, it expects capital expenditures of $20 million to $25 million.

Build-A-Bear Workshop, Inc. (NYSE:BBW) has plans for the continued expansion of its experienced locations in 2025, with an expectation to open a minimum of 50 new net locations during the fiscal year. Notably, the majority will be partner-operated as the company continues to bring its brand to more places and more people. Build-A-Bear Workshop, Inc. (NYSE:BBW) is also focused on multi-year comprehensive digital transformation throughout the entire company, which includes an omnichannel focus on unlocking value, with new capabilities to fuel incremental opportunities such as same-day delivery, gifting, and personalization programs. International trade remains critical, and the company has made strides to diversify its supply chain. In 2018, Build-A-Bear Workshop, Inc. (NYSE:BBW) sourced nearly all of its products from China. The company has since reduced its dependency, and it anticipates China to be the source of less than 50% of its inventory shipped to North America in 2025.

Overall, BBW ranks 12th on our list of best WallStreetBets stocks to buy according to hedge funds. While we acknowledge the potential of BBW as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for a deeply undervalued AI stock that is more promising than BBW but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.