- GameStop (GME): GME has seen multiple short squeezes in two years. Regardless, the video game retailer’s fundamentals remain under pressure.
- AMC Entertainment (AMC): Other than GME, Reddit’s r/WallStreetBets has been particularly kind towards AMC. However, AMC needs a coherent strategy to move forward with the cash it has accumulated.
- Nvidia (NVDA): Reddit investors often differ from mainstream Wall Street opinions. In this case, though, Nvidia ticks all the boxes for all parties involved.
Reddit continues to be an unlikely stock trading hub this year. At the height of the Covid-19 pandemic, novice investors turned Reddit’s r/WallStreetBets into one of the most important investing communities in the world. And that momentum has not stalled in the summer of 2022. Therefore, you cannot afford to ignore Reddit stocks.
Redditors typically target heavily shorted stocks, and then the so-called meme stocks start to soar to new heights. Due to the volatility created in the markets, investors have been forced to sit up and take notice. Once again, some of the most popular meme stocks are on everyone’s radar. However, these volatile names can be too much for beginners to enter for a long-term exchange.
Nevertheless, WallStreetBets offers several tools that can help you keep up-to-date on all the latest hot picks. Here are three companies that are always under discussion on the subreddit.
Reddit Stocks: GameStop (GME)
You cannot mention Reddit stocks and not talk about GameStop (NYSE:GME). It is the mascot of the Reddit era of investing in many ways. The stock and its investors have seen multiple short squeezes in the last two years, and it doesn’t look like the momentum is slowing. Shares have held steady despite other meme stocks giving away most of their gains.
The latest rally is courtesy of the company’s charismatic chairman Ryan Cohen. He purchased another 100,000 shares of GameStop stock. In addition, the company has laid out a stock split proposal. This was enough to set the “apes” wild, leading to yet another stretch of bullish momentum for GME stock.
Regardless, the company’s fundamentals leave a lot to be desired. Although revenue surpassed $6 billion in 2021, the company posted a loss of $381 million for the full year. On the bright side, the company did end the year with $1.271 billion in cash and cash equivalents in its coffers.
Overall, GME remains an embattled company with an unclear turnaround plan. However, it remains a top favorite in Reddit forums.
AMC Entertainment (AMC)
Apart from GME, perhaps the biggest beneficiary of r/WallStreetBets has to be AMC Entertainment (NYSE:AMC). When the Covid-19 pandemic hit, AMC was forced to shutter. It was already struggling with the rise of streaming and falling ticket sales, but the pandemic seemed like the final nail in the coffin.
However, much to everyone’s surprise, the hashtag #saveAMC trended, leading to a resurgence in AMC stock. Management took advantage of the trend and issued millions of dollars in equity, shoring up its balance sheet. Also helping matters have been superhero releases that have brought audiences back to the theatres, particularly Spider-Man: No Way Home, which minted over $1.8 billion at the global box office.
However, AMC, much like GME, needs a coherent strategy to move forward. That is especially true in a world where fewer people go to the box office. The company recently invested in a struggling gold and silver miner, Hycroft Mining Holding Corp. (NASDAQ:HYMC), leaving many investors scratching their heads.
Reddit Stocks: Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) has been in the market since before the launch of the PC. It is a technology company that specializes in graphics cards, cloud computing, and artificial intelligence.
Nvidia has been at the forefront of AI technology, making it possible for people to easily use their artificial intelligence tools. Nvidia’s products have also helped game developers with more efficient ways to do their work.
Reddit investors often do not agree with mainstream Wall Street opinion. However, in the case of Nvidia, it is a Wall Street darling and is a cash flow machine. In addition, industry-leading GPU provider Nvidia has joined the ranks of other companies in establishing a presence in the metaverse with their powerful and versatile GPUs.
The metaverse consists of different virtual spaces created by individuals or groups of users. The user can explore these worlds via avatars which are virtual representations of themselves that they control in the digital world. It is one of the hottest investing themes, with many companies putting their names in the ringer.
Nvidia is on the verge of revolutionizing the computer industry with its new graphics chips. These chips will power the metaverse and help revolutionize gaming as we know it, meaning they’re a company you cannot afford to ignore.
On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.