7 Reddit Stocks That Could Be 2022’s Next GameStop

Reddit stocks - 7 Reddit Stocks That Could Be 2022’s Next GameStop

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Under the commonly accepted paradigm of Wall Street, many investors are able to thrive on the way the market is set up. However, for a glorious year in 2021, the burgeoning concept of Reddit stocks proved that, sometimes, the market can defy gravity.

Sharing information under the social media platform’s r/WallStreetBets community, an intrepid few noted that major hedge funds were well-overleveraged in their bearish position on GameStop (NYSE:GME), a struggling video games and accessories retailer that was increasingly becoming irrelevant as gaming transactions increasingly occurred online. Before the madness of now casually referred to as Reddit stocks, I bought (and still hold some) shares of GME.

Frankly, it beat out every possible upside expectation I had for the rather speculative bet. And that’s the charm of Reddit stocks. Right when you’re down on your chips, the community swoops in and stops the affluently cynical dead in their tracks.

As many of you may know, cruelty to animals is “symptomatic of a deep mental disturbance,” per Henry R. Hermann Ph.D., a researcher in human behavior and criminality. Well, those who are adamant about supporting Reddit stocks to buy may demonstrate reverse psychopathy. That is, Reddit traders may see themselves as the righteous hunter, blowing away birds of prey just as they swoop in for the kill.

The irony, though, is that committing such acts ruins the ecological balance that organically promotes harmony in nature. In the investment market, short trading is necessary, in part to weed out underperformers from accruing any more capital from unsuspecting or unsophisticated investors. Furthermore, short trading may facilitate holistic price discovery, thus potentially mitigating wild peaks and valleys.

Still, the meme-trading phenomenon that started with GameStop may continue throughout the new year, even if GME stock itself is starting to look long in the tooth. With that in mind, here are other possible ideas for Reddit stocks that could be the next big thing.

  • CoreCivic (NYSE:CXW)
  • Workhorse (NASDAQ:WKHS)
  • Corsair Gaming (NASDAQ:CRSR)
  • Cinemark (NYSE:CNK)
  • Marathon Digital (NASDAQ:MARA)
  • Lottery.com (NASDAQ:LTRY)
  • Wallbox (NYSE:WBX)

Before we move forward, let’s discuss a few disclosures. First, speculating on the next big Reddit stocks is extremely speculative. Second, I am just presenting ideas — this is for entertainment purposes, not investment advice. Third, I do not own the featured securities and therefore, I don’t care whether they move higher or not. Please conduct your own due diligence.

Reddit Stocks: CoreCivic (CXW)

Yellow tape reading "crime scene do not enter" is stretched across a rainy, night time setting.

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I’m cheating a bit with CoreCivic as a potential idea for top Reddit stocks in 2022 as its rival, Geo Group (NYSE:GEO) generated significant buzz across various social media channels. For me, the inclusion of GEO stock on Reddit traders’ radar was a curious one.

Last year, I penned an article for TipRanks where I described the clear contradiction between the original ethos of meme trading — getting back at Wall Street hedge funds who destroyed regular households without accountability in 2008 — and the very idea of profiteering from private-prison institutions like Geo or CoreCivic.

The situation was straight out of George Orwell’s Animal Farm. Surprisingly, few batted an eyelash at this contradiction. I guess when you’re dealing with Reddit stocks, it’s the profitability that matters. Then again, the same could be said about the very hedge funds the social media crowd targeted.

Given that the meme-stock movement may have already shifted from their initially well-intentioned philosophy to pure greed, I would not be surprised if CXW stock swings dramatically higher this year. After all, crime — particularly property crime — is on the rise in the post-pandemic period, cynically boding well for CXW stock.

Workhorse (WKHS)

A Workhorse W-15 hybrid electric pickup truck on display at a branding event in Flatiron Plaza in New York.

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If any name could be the next GameStop, it could be Workhorse, the electric vehicle (EV) manufacturer that everyone seemingly thought was a shoo-in for the U.S. Postal Service’s contract for next-generation mail carriers. Since Workhorse was the only all-electric solution in the bidding, many if not most analysts reasoned that it had the highest probability of securing the deal.

Instead, the USPS went with Oshkosh (NYSE:OSK), a defense contractor. Prior to the “shocking” decision, I warned InvestorPlace readers that Workhorse might not have the inside track. In large part, EV technology was not yet fleshed out as other forms of transportation. Further, Oskhosh specializes in building military transporters that perform under any condition.

Believe me, if Oshkosh is good enough for the Marine Corps, it’s good enough for your mail.

However, I understand that fans of Reddit stocks may take umbrage with the USPS’ choice. Combined with the high short percentage of float (26.9% as of Dec. 31, 2021), WKHS stock could genuinely surprise folks. Just keep in mind that I haven’t changed my mind: I think Workhorse is too dangerous to trade.

Reddit Stocks: Corsair Gaming (CRSR)

A photo of the Corsair (CRSR) logo on the front of a building in California.

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I’m probably going to get trashed for mentioning Corsair Gaming as a possible big play among Reddit stocks in 2022. Mainly, this is due to how terrible CRSR stock has performed. Over the trailing one-year period heading into the first weekend of the new year, shares plummeted exactly 47%. Undoubtedly, some folks in the social media crowd jumped on CRSR stock last year, likely prompting negative feelings.

Also, Corsair seems like such an obvious idea for high-potential (albeit incredibly risky) Reddit stocks that it’s akin to picking low-hanging fruit. A gaming hardware and peripherals specialist, CRSR stock experienced a massive bump higher in the early months following its debut on the Nasdaq in September 2020. However, it’s been a rocky road since February.

The other reason why Corsair appears too obvious is how bearish the market is on CRSR stock. As of the latest read (Dec. 31, 2021), CRSR features a short percentage of float of 36.6%. Also, its short ratio is elevated at 6.6. Combined, these figures tempt — though absolutely not guarantee — a short-squeeze trade. However, the community will have to make it happen.

Cinemark (CNK)

A Cinemark (CNK) movie theater with customers around the entrance

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Apparently, adherents to popular Reddit stocks to buy really love their cineplex operators. Again, we have another contradiction. While the subject features plenty of debate, a YPulse study suggested that what many suspected all along: young people might kill the box office.

“Our PULSE survey found the majority (68%) of 16-34-year-olds told us that they would prefer to watch a new movie at home on a streaming platform, versus 32% who say they would prefer to go see it in theaters.” That sentiment contrasts sharply with investors who clamored on board that other meme trade.

So, I figure, could 2022 be the year that Cinemark gets some love? Over the trailing year, CNK stock is down 12.4%. If you believe in baseball aphorisms such as a player “being due” a homerun, you may want to consider throwing some loose change under the sofa at Cinemark.

Also, while the company doesn’t have the bearish attention that earlier Reddit stocks “enjoyed,” its still on some short traders’ radar. At present, CNK stock has a short percent of float of 30.2%, though its short ratio is somewhat modest at 6.6.

Reddit Stocks: Marathon Digital (MARA)

futuristic image of a hand with the words block chain floating above it. representing riot blockchain stocks

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With the year that cryptocurrencies had in 2021, it was perhaps only inevitable that the sector would incur a serious correction. As I sit here writing this, over the trailing week, several major cryptos have printed red ink to the magnitude of 15% or greater. That would place us near the cusp of what analysts usually consider bear market territory.

However, it’s also possible that virtual currencies won’t collapse like other bubbles in market history. Because of the mainstream attention that this recent rally (that’s probably about to end) generated, it’s possible that the sentiment may have reached critical mass. That is to say, the cat’s out of the bag. From now on, people may have a permanent interest in cryptos, irrespective of the digital market’s valuation.

On paper, this circumstance bodes well for Marathon Digital, an ambitious enterprise-level crypto miner. Moreover, the decline in MARA stock shares — down a whopping 22% in the trailing month — could entice speculators of Reddit stocks.

Plus, it might not hurt that MARA features a short percent of float of 20.4% (though its short ratio of 1.7 is quite low).

Lottery.com (LTRY)

an excited man screaming with clinched fists as hundreds of dollars floats in the air around him

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As I mentioned before, this list of potentially massive Reddit stocks for 2022 is simply a giant guess. Treat this as merely my attempt to amuse myself. However, I’m noticing some patterns regarding which securities receive outsized attention. Therefore, it may not be out of the realm of possibility that Lottery.com could be a hit this year.

However, several headwinds exist that could hurt LTRY stock’s chances. First of all, the equity unit stinks. Over the trailing year, it’s shed almost 60%. Second, Lottery.com entered the public arena via a reverse merger with a special purpose acquisition company. Unfortunately, post-business-combination SPACs (special purpose acquisition companies) stink, at least compared to the trailing-year performance relative to benchmark indices.

Nevertheless, Lottery.com’s potential lies in the fact that gambling is popular. As well, with speculation nowadays being the only way to get ahead due to ho-hum rises in wages, the activity may remain so.

Perhaps most importantly under the context of high-profile Reddit stocks, LTRY stock is an exercise in cynicism. As I mentioned in my coverage for Benzinga, lotteries tend to keep underprivileged communities in a cycle of poverty. But that also means a recurring revenue stream for the Redditers who believe greed is good.

Reddit Stocks: Wallbox (WBX)

A photo of an electric car with the charger plugged in.

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Though many ideas undergirding fast-moving Reddit stocks have been predictable, it’s important to remember that no one market community is a monolith. Within the same social media thread, you’ll find ample discourse and debate. This is to say, not every idea has been cynical. Therefore, I’m going to end on a positive note with Wallbox.

Now, that’s not to suggest that WBX stock is a surefire winner because frankly, I have no idea. What I do like about the underlying company is that it plays into the EV revolution; specifically, through the production of smart charging and energy management solutions for your home and ride.

Wallbox hits upon two major themes that some traders will find attractive. Obviously, the core products enhance the progression and viability of clean transportation. Second, ample research points out that millennials and Generation Z care about sustainability — and many put their money where their mouth is.

Nevertheless, WBX stock still has risk factors working against it. Mostly, the pensiveness centers on Wallbox being potentially overvalued against projected future cash flows. That’s even with WBX stock taking a sizable 15.4% loss in the first week of 2022. Thus, prospective buyers will need to be careful — but you knew that already.

On the date of publication, Josh Enomoto held a LONG position in GME. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.


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