Finding the best Reddit stocks isn’t as hard as you might think.
Popular social media platform Reddit has evolved from simply an information-sharing platform to a formidable force that effectively drives market trends. Therefore, it has become imperative for investors to keep tabs on the best Reddit stocks.
Through forums such as WallStreetBets, the Reddit community has effectively rallied around stocks, shaking the foundations of traditional investing.
It has become a platform that can effectively make or break a particular stock. Moreover, a recently released survey showed that over 50% of the top institutional investors polled use Reddit to make investment decisions. So finding the best Reddit stocks could be worth your while.
Without further ado, here are seven of the best Reddit stocks to wager on for the long haul.
| AAPL | Apple | $161.68 |
| TSLA | Tesla | $184.39 |
| SPY | SPDR S&P 500 ETF Trust | $408.97 |
| NIO | Nio | $9.03 |
| ORCL | Oracle Corporation | $93.84 |
| V | Visa | $226.28 |
| DIS | Walt Disney | $100.48 |
Apple (AAPL)
Apple (NASDAQ:AAPL) is one of the most iconic tech companies and is currently the most valuable company in terms of market capitalization at over $2.5 trillion.
It’s known for its ubiquitous brands that it has effortlessly weaved together in a cohesive and sticky ecosystem. Its most popular products, such as the iPhone, have a global market share of more than 50%, with sound positions in key international markets.
Over the years, Apple has been a prolific performer, and an excellent wealth compounder, generating close to a 300% return over the past three years. Despite the headwinds, it has done remarkably well in growing its business.
Its fourth-quarter results took a massive hit because of foreign exchange headwinds. However, CEO Tim Cook states that the business would’ve grown in the vast majority of its operational markets. Its management expects similar numbers in the upcoming quarter but could snap back in a major way in the second half of 2023.
Tesla (TSLA)
Shares of EV stalwart Tesla (NASDAQ:TSLA) took a hammering last year but are still up 50% year-to-date.
It’s currently trading at 5.7 times forward sales and 35.8 times forward cash flows, which is more than 25%, lower than its five-year average for both metrics.
From a fundamentals perspective, Tesla continues to kill it with its quarterly results. In the past year, its revenue and EBITDA growth metrics are up more than 51% and 84%, respectively.
It recently posted record deliveries of 422,875 vehicles, edging past the consensus estimates of 421,200 vehicles. These results are roughly 4% higher than the previous quarter, putting it on course to deliver a whopping 2 million vehicles, up 50% from last year.
Its solid results have put to rest the concerns surrounding its price cuts and a potential demand deceleration.
SPDR S&P 500 ETF Trust (SPY)
SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is a top exchange-traded fund (ETF) that, as the name implies, follows the S&P 500 index.
The index includes a unique combination of 500 stocks of the most prominent businesses in terms of market cap in the U.S.
SPY has been a tremendous wealth compounder over the past decade, generating more than 150% return. Though returns in the past year were relatively sluggish, SPY stock will continue producing healthy returns over the long term.
Also, it has grown its dividend payouts for 13 consecutive years, with almost 30 years of consecutive payments. Its expense ratio of just 0.09% is more than 80% lower than the sector median. Hence, SPY is a large-cap ETF worth considering for those with a relatively long investing horizon.
Nio (NIO)
Nio (NYSE:NIO) is a leading Chinese EV brand that turned heads with its deliveries during the pandemic years.
It delivered triple-digit to even quadruple-digit sales growth from 2020 to 2021 but witnessed a marked slowdown in its results last year.
A myriad of headwinds, including the Russia/Ukraine war, the dwindling macroeconomic conditions, and the Chinese lockdowns, weighed down its results significantly.
However, despite the normalization in its growth rates, it was still able to rack up an incredible 25.6% revenue bump last year.
With the headwinds easing out, its CFO Steven Feng expects the firm to double its sales target of 250,000 EVs in 2023. If it can achieve its 2023 target, expect Nio stock to soar past its 52-week highs.
It will look to accelerate its expansion plans in Europe to diversify its revenue base effectively. Its plans include the release of new EV models in the region and the expansion of charging facilities.
Oracle Corporation (ORCL)
Oracle Corporation (NYSE:ORCL) represents a multinational tech company providing a wide range of database, enterprise software, and cloud infrastructure services.
It’s known for its various software solutions covering multiple business areas, including human resources, supply chain, and other key areas.
On top of that, the company has been investing heavily in the cloud sphere, focusing on helping its customers move their workloads to the cloud.
Despite a challenging year for its software-as-a-service offerings, it is still growing the division by double-digit margins in recent quarters.
However, the star for the company has been its cloud division, which generated a spectacular $4.1 billion in sales for the company, a 48% on a constant-currency basis in its most recent quarter.
Revenues across the board for its cloud services, including infrastructure, application, and entity-resource-planning, have all grown by double-digit margins in its third quarter.
Perhaps most impressive is that it has effectively maintained its profitability, delivering robust double-digit expansion in its gross, net income, and other core metrics.
Visa (V)
Visa (NYSE:V) has established its position as a titan in the credit card sector, commanding a prestigious position in fintech. An amazing 50% net income margin has backed its robust business over the past five years.
The pandemic catalyzed a massive surge in growth for its top and bottom-line results, fueled by the boom in eCommerce transactions.
With the pandemic tailwinds waning, the revival of travel and tourism has helped unlock new opportunities for growth for Visa and its peers.
Cross-border payments have witnessed significant late expansion, mitigating the impact of recessionary shocks in the macroeconomy. Cross-border volumes were up 20% in its fourth quarter and have been growing rapidly in recent quarters.
For shareholders, V stock shines with 14 years of consecutive dividend payout growth and is modestly undervalued, as per GuruFocus, making it a highly attractive proposition.
Walt Disney (DIS)
Walt Disney (NYSE:DIS) is a powerhouse in the entertainment space, with moat-worthy businesses that continue to add new layers to its growth story.
The current business environment is far from conducive for its business, so the return of its prodigal CEO, Bob Iger, makes sense.
Iger aims to streamline the business into three core units: Entertainment, ESPN, and Parks/Experiences/Products. The goal for the firm is to cut as many costs as possible and operate a leaner and meaner business structure.
Post-pandemic tailwinds have helped breathe new life into the wondrous escapades part of its Parks/Experiences/Products division. In its most recent quarter, Disney’s Parks/Experiences/Products delivered more than 20% growth to $8.7 billion.
Its direct-to-consumer segment, which includes its streaming services, experienced an amazing 13% bump on a year-over-year basis in sales in the fourth quarter.
It services an amazing 164.2 million subscribers in its streaming business, covering Disney+, Hulu, ESPN+, Star+, and others that have evolved incredibly over the years.
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
Financial, Bank, Cloud, Consumer Discretionary, Automotive, Electric Vehicles, Software, Communications, Media, Streaming, Technology, Travel
