- These are seven of the best Reddit stocks for investors to buy even with only $100.
- SoFi Technologies (SOFI): Analyst upgrades and insider buying may be enough to overcome market sentiment.
- Palantir (PLTR): Growing revenue may become too much for reluctant investors to ignore.
- Nio (NIO): When electric vehicle stocks become more attractive, Nio is likely to lead the way.
- Wendy’s (WEN): The company may be raising prices, but it should have little effect on revenue.
- Intel (INTC): Significant investments in R&D may begin to pay off.
- Verizon Communications (VZ): This is a win-win stock for investors no matter what unfolds in the economy.
- Robinhood (HOOD): It’s the market not the model that needs a boost.
If you see “Reddit stocks” and immediately think of meme stocks, I’d encourage you to think again. It’s true the Reddit community became part of the national conversation because of stocks like GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC). However, its members invest in much more than meme stocks.
You may think the market is too risky right now. But there’s also a part of you that knows some terrific stocks are trading at bargain prices. To invest in the best Reddit stocks, you don’t have to have a lot of money. In fact, if you have just $100 and the time to wait on the market to turn around, there are some real bargains available.
For many of the stocks on this list, I’ve tried to give you some inexpensive picks of which you can buy multiple shares with $100. However, for some of these Reddit stocks, even buying fractional shares can pay off over time.
SoFi Technologies (SOFI)
Prior to SoFi Technologies (NASDAQ:SOFI) releasing its first-quarter earnings report, I wrote that it was swimming against the market current. That may still be true, but don’t tell that to the company’s CEO Anthony Noto, who recently purchased 39,000 shares of SOFI stock. That’s one reason why shares have climbed 28% since May 12.
The fintech company is not profitable and is not expected to turn a profit until 2024. However, it makes this list of the best Reddit stocks to buy because it continues to grow revenue and add customers. Plus, the company recently received its bank charter.
On the other hand, it will take several quarters to assess the impact of rising interest rates on student loans which will impact one of the company’s core audiences. Nevertheless, analysts are bullish about SOFI stock. The mean price target of 12 analysts is $11.21, which gives the stock a 53% upside.
Palantir (NYSE:PLTR) is trading below its direct listing price. This continues a bearish trend that started in September 2021. However, I recently posed the question: What more does the company have to do to please investors?
One critique of Palantir when it went public was its reliance on government contracts. However, when the company reported earnings in early May, it posed a 54% year-over-year (YOY) revenue increase with its commercial business and a 31% YOY increase in overall revenue.
The failure to grow earnings may be a contributing factor. And as Nicolas Chahine points out, investors may be scrutinizing its government business.
However, PLTR stock looks like a stock that warrants investor attention, particularly for starting a small position. There’s no dividend, but if the future revenue forecasts are accurate, it should meet analysts’ expectations for a mean price target of $11.28.
The electric vehicle (EV) sector has gone from feast to famine. And that’s been all too true of Nio (NYSE:NIO) stock. The stock is down 70% from its 52-week high set in June 2021.
Right now, Nio (and all electric car manufacturers) are tangled up in the supply chain difficulties as well as facing rising supplier costs. As a Chinese company, Nio also is being engulfed by the Covid-induced lockdowns in its home country. It also faces a (perhaps overblown) delisting concern. All of these put a risk premium on NIO stock.
However, none of these issues will remain in place forever. Of course, that doesn’t mean they’ll be going away anytime soon. Nevertheless, at its current price and with new models scheduled to launch, NIO is one of the best Reddit stocks to buy. And if you’re still holding onto shares, this may not be the time to sell.
Fast-food restaurants thrive during times of economic uncertainty, and Wendy’s (NYSE:WEN) has been a picture of consistency since the onset of the pandemic. Even though the company recently announced it will likely be raising prices, that trend should continue.
One reason is that CEO Todd Penegor said inflation is hitting grocery stores harder than the company’s restaurants. That should allow the company’s products to remain a comparative value.
Many market analysts are advising their clients that a return to more “normal” growth is likely in order. That makes WEN stock even more attractive.
It’s not going to blow the doors off for investors. But as long as it continues to increase revenue and pay a respectable dividend, WEN stock is a solid choice for investors — especially trading near its 52-week low.
Intel (NASDAQ:INTC) makes this list of the best Reddit stocks because of its valuation. Specifically, it’s one of the only stocks that is currently undervalued. Finding stocks that are trading at a true discount to their intrinsic value is key, and the fact that Intel pays a dividend as well may be an attractive selling point.
It also appears that the company’s $15.2 billion investment in research and development may begin to pay off. Intel recently launched its 12th-generation Alder Lake chips for laptop computers. This is an opportunity for the company to go on the offensive against some of its rivals.
Moreover, Intel Foundry Services, which was founded in 2021, is another avenue for growth. This is still in its early stages, but the company has already made significant investments in the United States and Europe to add capacity.
Verizon Communications (VZ)
One way for investors to approach an investment in this market is to look for defensive stocks that pay a nice dividend. That’s the bullish argument for investing in Verizon Communications (NYSE:VZ). The telecommunications giant continues to deliver reliable revenue and earnings.
And if a recent report by Grand View Research is accurate, the company should have no problem continuing on this path for the next five years or more. This growth is likely to come from the second generation of 5G, which is only now beginning to gain traction with consumers.
Verizon is a safe choice for investors. If the economy improves, the company will benefit as more people look to upgrade their mobile devices. On the other hand, if the economy does go into a recession, investors will be looking for reliable dividend stocks. That makes VZ stock the kind of win-win scenario that should be very appealing to investors.
The last of the best Reddit stocks to buy may be the most controversial. I understand Robinhood (NASDAQ:HOOD) is a stock that investors love to hate. It doesn’t have a true moat. It has exposure to cryptocurrency markets, which are collapsing in lock step with equities. Plus, many retail investors may be bailing on their quixotic dreams of getting rich quick via the stock market.
But that only tells one side of the story. The reality is the company is giving many investors who previously may not have felt they had access to the market an opportunity to build wealth over time. There will always be risk in that. But a larger pie of investors benefits everyone in the end.
The company is also benefiting from a fresh infusion of cash from billionaire investor Sam Bankman-Fried. He sees “a lot of areas for the company to grow and innovate going forward.”
On the date of publication, Chris Markoch 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.