The 3 Most Popular Stocks and Cryptos on Reddit This Week

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  • The most popular Reddit stocks this week are major names that garner major attention. 
  • Nvidia (NVDA): Nvidia’s valuation has Redditors making bets. 
  • JPMorgan Chase (JPM): According to Reddit, derivatives held at big banks are a time bomb. 
  • Dogecoin (DOGE): Dogecoin gets a lot of attention for its Musk connection.
popular stocks - The 3 Most Popular Stocks and Cryptos on Reddit This Week

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Reddit caters to a decidedly fun-loving, risk-forward group of investors. Users trade in advice on popular stocks, often in the form of memes and comments related to those memes. Much of the conversation centers on put-and-call options, allowing investors to buy or sell at specified times and prices. Options trading is risky, but young investors tend to be open to risk, so that’s what Reddit contains.

That isn’t to say that Reddit users aren’t doing fundamental analysis. They certainly are, and discuss their due diligence as well on these forums. Whether Redditors are talking about losses on stonks or attempting to concentrate power and raise the price of AMC (NYSE:AMC), they’re a part of the investing world worth understanding.

NVDA Nvidia $270.42
JPM JPMorgan Chase $140.73
DOGE Dogecoin $0.078

Nvidia (NVDA)

Closeup of mobile phone screen with logo lettering of nvidia corporation on computer keyboard. NVDA stock.
Source: Shutterstock

First on this list of the most popular stocks and cryptos on Reddit is Nvidia (NASDAQ:NVDA), a company that’s garnered attention for several reasons. The company pioneered the graphical processor unit (GPU) back in 1999, for one. That catalyzed the growth of the PC gaming industry, which became massive two decades later. Recently, Nvidia has become increasingly relevant due to GPU technology intersecting with AI. Nvidia pioneered GPUs, which act as the brain of computers, which will drive the evolution of AI.

That makes NVDA incredibly relevant overall. And its relevancy acts as a magnet for investment capital. In other words, demand for NVDA stock is spiking as AI takes root.

On Reddit, there is evident skepticism about Nvidia. Most comments focus on the idea that Nvidia’s valuation is extremely frothy, and its earnings don’t justify such elevated prices. Nvidia overtook Tesla (NASDAQ:TSLA) based on market capitalization recently. It continues to grow as money piles in on the AI trend.

Indeed, NVDA stock is extremely expensive relative to earnings, but it might not matter. If AI can vastly increase the company’s growth profile, Nvidia will see windfall profits that justify the run-up.

JPMorgan Chase (JPM)

JPMorgan Chase (JPM) lettering on a corporate office in New York City.
Source: Roman Tiraspolsky / Shutterstock.com

JPMorgan Chase (NYSE:JPM) finds itself among the popular stocks in the Reddit community as well. Recently, part of the conversation around JPM stock centered on last month’s banking crisis and JPMorgan’s resultant favorable position.

But the conversation has also veered into a broad discussion implicating the largest banks and derivatives. Derivatives, as its name implies, derive their value based on fluctuations in the value of underlying assets, to which multiple parties are contracted.

The crux of the discussion is that four of the largest banks hold roughly 89% of the nominal value of all derivatives contracts across the U.S. banking system. According to the source some on Reddit cited, the notional value of those derivatives is $195 trillion. Thus, some have raised issues with how those derivatives are cleared, as defined in Dodd-Frank regulations.

There’s speculation that the high exposure these banks have to the derivatives markets could result in some wild swings moving forward. It is certainly food for thought, but as commenters noted, it’s shrouded in opacity, which means this stock, and its entire sector, remains difficult to assess.

Dogecoin (DOGE)

A close-up shot of a Shiba Inu with a grinning face representing Dogecoin.
Source: Wollertz / Shutterstock

Redditors are also clearly interested in Dogecoin (DOGE-USD). Elon Musk recently changed the logo on Twitter to the Dogecoin Shiba Inu logo, which has reignited conversations about the coin and Musk in general.

Overt criticism of Musk is now becoming more evident by many Redditors. A vocal majority openly called Musk a scammer, and stated that the logo tactic was another pump-and-dump play meant to jack up the price of Dogecoin temporarily.

The conversation naturally veered into the ongoing Dogecoin lawsuit worth $258 billion. I don’t know the case’s specifics, but it’s difficult to see why Musk would get involved in such a blatantly non-utilitarian project only to pump it up. It was always a joke, according to its very vocal creators. For Musk to use his influence, and then profit from the resultant price swings, does give the appearance of impropriety.

One of the better comments suggested that Musk delusionally believes his legacy will be colonizing Mars, while it’s more likely to be losing a Dogecoin pump-and-dump lawsuit.

On the date of publication, Alex Sirois 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.


Article printed from InvestorPlace Media, https://investorplace.com/2023/04/the-3-most-popular-stocks-and-cryptos-on-reddit-this-week/.

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