Reddit has become a treasure trove for investors looking for high-risk/high-reward opportunities, which makes the best Reddit stocks to buy incredibly pertinent. This vibrant community of risk-embracing individuals exchanges valuable insights on stocks that could potentially offer above-average returns. Beneath the humor, these Reddit users also delve into fundamental analysis, sharing practical advice online.
The platform has effectively evolved from a simple information-sharing platform into an essential resource for investors hunting for top Reddit stocks. In fact, a recent survey revealed that more than half of the top institutional investors polled rely on Reddit for decision-making. Therefore, seeking out the best Reddit stock picks is imperative for investors looking to play trends and, in the process, rake in a lot of moolah.
Though Reddit investing traditionally involves wagering on risky stocks, the article’s focus is quite the opposite. The stocks listed below are among the most trending stocks of Reddit, which conflict with the investments its users usually push on the platform.
|SPY||SPDR S&P 500 ETF Trust||$412.74|
|IBKR||Interactive Brokers Group||$78.11|
|AMD||Advanced Micro Devices||$95.04|
Tesla (NASDAQ:TSLA) never ceases to amaze with its ability to dish out robust results each year, further separating itself from the crowded electric vehicle (EV) pack. It continues to forge ahead, despite facing headwinds after its first-quarter earnings miss in mid-April. Moreover, with its stock down over 8% over the past month, it presents an excellent buy-the-dip scenario for savvy investors.
The company delivered a whopping 422,875 cars globally, following price cuts in the first quarter. This number came in comfortably ahead of the 421,164 deliveries expected by its analysts. Moreover, it announced its ambitious production goals of 1.8 million to 2 million vehicles this year, which could be a significant catalyst for its stock. Also, its investors have plenty to look forward to with the company, with the launch of Tesla’s much-awaited Cybertruck and the inauguration of its new manufacturing facility in Mexico.
Furthermore, institutional investor sentiment surrounding the stock remains excellent, with hedge funds adding more than 700,000 of its shares to their portfolios in the first quarter. Following earnings, Maverick stock pickers such as Cathie Wood also doubled down on TSLA stock.
SPDR S&P 500 ETF Trust (SPY)
The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is a leading exchange-traded fund (ETF) that effortlessly tracks the performance of the illustrious S&P 500 index. The S&P 500 index needs no introduction, as it tracks 500 of the most powerful market-cap heavyweights in the U.S. stock market.
After ending 2022 in the red, the SPY ETF is up almost 8% year-to-date. Once markets get more clarity over the interest rate environment, the ETF is likely to reward its shareholders over time. Over the past decade, it’s been an impressive wealth generator for its investors, racking up more than 200% of total returns. Moreover, it boasts a tremendous dividend profile, with almost 30 years of consecutive payments, compared to the sector median of just 2.5 years.
DTE Energy (DTE)
DTE Energy (NYSE:DTE) is a leading diversified energy company based in Detroit, Michigan. It generates, distributes, and sells electricity and natural gas to millions of customers in Michigan through its regulated subsidiaries.
Due to the nature of its business, DTE offers stable returns to its investors, with healthy price stock price appreciation and a robust dividend. Total returns for the stock over the past decade exceed 150%, including a dividend that’s been growing for 13 consecutive years.
Furthermore, DTE Energy focuses on sustainability through its investments in renewable energy sources. For instance, DTE Electric invested more than a whopping $750 million during the first quarter on the back of continued improvements in clean energy generation for its customers. Moreover, it started operations at Michigan’s largest wind park during the quarter, potentially powering 78,000 homes in the state with this power source alone.
Tech giant Apple (NASDAQ:AAPL) continually astonishes one-and-all with its timeless products and services and its penchant for innovation. Additionally, the company’s ability to reward its shareholders with its cash flow-generating machine is second to none in its niche. Apple recently delighted shareholders by announcing a massive $90 billion buyback, while raising its quarterly dividend by 4.3% to 24 cents per share.
Furthermore, it recently posted its relatively strong first quarter results, which beat estimates on sales by $2 billion, and its earnings per share by nine cents per share. Its strong results were driven by encouraging smartphone demand, despite the slowdown in the space.
Furthermore, Apple is making strategic forays into new markets to diversify its revenue base further. Impressively, its partnership with Goldman Sachs (NYSE:GS) to launch a high-yield savings account garnered $1 billion in deposits within four days of launching. Simultaneously, the tech giant is tapping into India’s vast middle-class market, which could lead to it tripling its sales to $20 billion by 2025.
C3.ai (NYSE:AI) remains a frontrunner in the realm of hyper-growth stocks, with its shares skyrocketing by over 100% this year on the back of the hullabaloo surrounding artificial intelligence. Keeping a long-term investing horizon in mind is critical in winning big with AI stocks, given this sector’s colossal growth trajectory.
Speaking of growth trajectory, C3.ai’s CEO Tim Siebel envisions a $600 billion market for AI software, foreseeing AI becoming commonplace with the widespread use of enterprise AI applications. Therefore, you’d want to ignore the company’s short-term struggles, and instead focus on its enticing long-term picture.
Its business is currently experiencing slower growth due to a shift from a subscription-based to a consumption-based business model. However, this transition will effectively streamline the sales cycle, and boost revenue and profitability, strengthening the firm’s market position in the long-run.
Interactive Brokers Group (IBKR)
Interactive Brokers Group (NASDAQ:IBKR) is a leading dynamic broker-dealer, appealing to traders looking for diverse investment options. Its services encompass stocks, options, futures, forex, bonds, and other investments across 150 exchanges.
Over the years, the firm has enjoyed spectacular customer growth, boasting a 30% increase in total accounts. Moreover, Interactive Brokers remains on track to effectively acquire 80 million accounts in the long term, roughly 1% of the world’s population. Thanks to the firm’s steadfast commitment to engineering, automation, and its capacity to serve customers globally, it’s poised for robust gains over the long-term.
Its valuation is mighty attractive at current prices, with IBKR stock trading at under 2-times trailing-twelve-month cash flows, roughly 66% lower than the sector median. Over the years, it has been an amazing wealth compounder, providing a return of over 430% in the past decade. Also, it’s been paying a dividend for the past couple of years, which should grow in line with its rock-solid business.
Advanced Micro Devices (AMD)
Advanced Micro Devices (NASDAQ:AMD) has hit a rough patch of late, on the back of weaker-than-anticipated demand in the PC Client and data center end markets. Nevertheless, its temporary hiccups shouldn’t deter investors from its massive long-term potential.
Indeed, AMD has effectively solidified its position as a leading chip stock with popular Ryzen CPUs and GPUs for personal computers. As my fellow InvestorPlace colleague Chris MacDonald remarked, Ryzen CPUs have allowed AMD to effectively outpace its main rival Intel (NASDAQ:INTC) in sales at a rapid pace.
Additionally, AMD has significantly expanded its integrated solutions and data center segments, gearing up to maximize its potential in the AI market. The rumor mill has been buzzing over its potential partnership with Microsoft (NASDAQ:MSFT) in expanding its push into AI processors, a potentially gigantic opportunity.
On the date of publication, Muslim 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.