In this article, we discuss 12 best Reddit stocks to buy now. You can skip our detailed analysis of retail investors and the importance of Reddit in the investment world, and go directly to read 5 Best Reddit Stocks To Buy Now.
We are all familiar with how Reddit played a significant role in the stock market through the ‘Reddit GameStop saga’. This event took place in January 2021 and involved a volatile and unexpected surge in the stock price of GameStop, a struggling video game retailer. The trading craze demonstrated that coordinated actions by non-professional investors can have a significant impact on the stock market, at least in the short term. Moreover, this episode has encouraged more retail investors to participate actively in trading and investing. Retail trading in the US is on the rise once again, following a period of reduced activity. According to Vanda Research's recent report, individual traders poured the most money into the market in three months ending June 3, with average daily inflows reaching $1.36 billion per day. The report also mentioned that a significant increase in retail buying is likely contributing to a short squeeze in small-cap stocks.
Due to the banking sector's instability earlier this year, high-interest rates, and concerns about a possible recession, amateur investors subsequently stepped back from the market for a while. After Biden signed the debt ceiling agreement on June 3, retail investors showed a renewed appetite for ETFs, individual stocks, and other investment options. Despite the S&P 500 index already rising 17.8% this year, individual investors didn't hesitate to purchase $1.5 billion worth of stocks during the week that ended on June 20. This amount was the highest ever recorded. When combining exchange-traded funds (ETFs) and individual stocks, the total investment by non-professional investors reached $4.4 billion during that period, as reported by JPMorgan Chase & Co.
Among various investment strategies, technology-related stocks are emerging as winners among these ordinary investors. eToro's Retail Investor survey found that 23% of US retail investors intend to boost their investments in the tech sector, and 11% plan to increase their stakes in AI stocks. Additionally, the study revealed that almost 34% of respondents believe that AI technology will make better investment decisions compared to a human fund manager.
The interest of individual investors in AI-focused stocks is evident from their investment in NVIDIA Corporation (NASDAQ:NVDA) and other tech stocks. According to a report by JPMorgan, Nvidia surpassed Tesla, Inc. (NASDAQ:TSLA) as the most traded U.S. stock by retail traders for over six consecutive months after an impressive forecast. As of the last week of May, the total value of Nvidia's stock traded by retail investors reached $2.5 billion. The report also mentioned that NVDA ranked third as the most traded stock by these small-time investors. Similarly, Apple Inc. (NASDAQ:AAPL) has drawn the interest of individual investors because of the tech rally happening this year. Other best Reddit stocks are mentioned below.
For this list, we extensively reviewed Reddit trading forums like r/WallStreetBets, r/stocks, and r/trading, where retail investors actively discuss and share investment ideas. After conducting thorough research and analysis, we identified 20 stocks that are receiving significant attention on Reddit as of July 14. From this list, we selected 12 stocks that had the highest number of hedge fund investors tracked by Insider Monkey as of Q1 2023. While these stocks represent various industries, the majority of them belong to the technology sector, driven by the ongoing tech rally.
Rocket Lab USA, Inc. (NASDAQ:RKLB) is an American aerospace company that specializes in the development and launch of small satellite launch vehicles. The stock is popular among Redditors because of its back-to-back successful launches. Moreover, the community appreciated the company's plans to manufacture satellites and components for constellations. It also intends to generate revenue by providing on-orbit servicing once the satellites are produced and launched. The stock is up 62.6% year-to-date, as of the close of July 14. It is among the best Reddit stocks on our list.
In the first quarter of 2023, Rocket Lab USA, Inc. (NASDAQ:RKLB) reported revenue of $54.8 million, which showed a 35% growth from the same period last year. During the quarter, the company successfully completed three Electron missions, catering to commercial constellation operators such as HawkEye 360, Capella Space, and BlackSky.
At the end of Q1 2023, 11 hedge funds tracked by Insider Monkey reported having stakes in Rocket Lab USA, Inc. (NASDAQ:RKLB), compared with 12 in the previous quarter. These stakes have a collective value of roughly $70 million.
Marathon Digital Holdings, Inc. (NASDAQ:MARA) is next on our list of the best Reddit stocks to buy now. The Nevada-based digital asset technology company is primarily engaged in cryptocurrency mining operations. The company focuses on mining cryptocurrencies such as Bitcoin (BTC) and generating revenue through the process of validating transactions and securing the underlying blockchain networks.
Redditors are favoring Marathon Digital Holdings, Inc. (NASDAQ:MARA) amid a surge in the crypto market, led by Bitcoin and Ethereum. The company mined 979 bitcoins in June, up 599% from the same period last year, and also increased its average BTC production per day by 32.6%. MARA has delivered a staggering 433.8% return to shareholders since the start of the year, as of July 14.
As of the close of Q1 2023, 13 hedge funds tracked by Insider Monkey owned stakes in Marathon Digital Holdings, Inc. (NASDAQ:MARA), compared with 14 a quarter earlier. The consolidated value of these stakes is roughly $20 million.
C3.ai, Inc. (NYSE:AI) is an American software company, headquartered in California. The company specializes in developing and providing enterprise artificial intelligence (AI) solutions. It combines AI technology with big data and cloud computing to deliver software applications that help organizations harness the power of AI in various industries. It is among one of the best Reddit stocks to buy now.
C3.ai, Inc. (NYSE:AI) is popular among the Reddit community because of its strong fundamentals, technological innovation, and market performance. Since the start of 2023, the stock has delivered a 236.6% return to shareholders and its 12-month returns came in at 99.4%.
The number of hedge funds tracked by Insider Monkey owning stakes in C3.ai, Inc. (NYSE:AI) grew to 24 in Q1 2023, from 19 in the previous quarter. These stakes have a total value of over $151.8 million. With 1.5 million shares, Coatue Management was the company's leading stakeholder in Q1.
Rivian Automotive, Inc. (NASDAQ:RIVN) is an American electric vehicle (EV) manufacturer and technology company. The company focuses on designing, developing, and producing all-electric vehicles, particularly electric trucks and SUVs. It is among one of the best Reddit stocks to buy now.
According to Redditors, Rivian Automotive, Inc. (NASDAQ:RIVN) offers sustainable transportation solutions with an emphasis on performance, adventure, and sustainability. The forum also discussed that the company has a good amount of cash available and their vehicles have received positive feedback from both owners and automotive journalists. It also has a significant number of people on its waitlist eager to purchase their vehicles. The company is increasing production capacity, with plans to produce more vehicles each quarter. Additionally, they are expanding their service centers and have new manufacturing plants in progress.
On July 3, Rivian Automotive, Inc. (NASDAQ:RIVN) announced in the second quarter, they manufactured 13,992 vehicles at their Illinois facility and successfully delivered 12,640 vehicles. The delivery number exceeded the expected consensus of 11.3K.
At the end of March, 31 hedge funds in Insider Monkey's database were bullish Rivian Automotive, Inc. (NASDAQ:RIVN), up from 29 in the previous quarter. The stakes owned by these hedge funds have a total value of nearly $630 million.
Baron Funds mentioned Rivian Automotive, Inc. (NASDAQ:RIVN) in its Q1 2023 investor letter. Here is what the firm has to say:
“Shares of Rivian Automotive, Inc. (NASDAQ:RIVN), a U.S.-based EV manufacturer, fell during the quarter. Despite seven-fold growth in its monthly production rate between late 2021 and the end of 2022, production guidance for 2023 missed analyst forecasts because of supply-chain constraints, principally semiconductors. Moreover, notwithstanding an attractive long-term opportunity and favorable product reviews by customers and industry experts, investors remain concerned about liquidity risks as the company burns cash during its early production stage while unit economics remain challenged. Vehicle sales through the end of 2023 will be at Rivian’s legacy vehicle pricing, which was set before inflationary and supply-chain pressures emerged last year across the entire automotive space. New pricing and improved unit economics should be realized in 2024, and Rivian is slated to launch its R2 vehicle line in 2026. We have adjusted Rivian to a smaller position in our portfolio. Despite near-term macro and execution risks, we do believe that Rivian’s current valuation offers attractive long-term returns. During the year, we will remain focused on Rivian’s production ramp, vehicle demand, unit-level economics, and cost controls as well as progress on its R2 vehicle platform, its next-gen Enduro electric motor, and its battery system advancements.”
Carvana Co. (NYSE:CVNA) is an Arizona-based e-commerce platform that operates in the automotive retail industry. The company specializes in providing a convenient and streamlined process for buying and selling used cars online. The company is popular among the Reddit community as its Gross Profit per Unit (GRU) grew by 61% on a year-over-year basis in the first quarter of 2023. It has also shown massive growth in its revenue since its inception in 2018. In the last 24 hours, CVNA got over 75 mentions on r/wallstreetbets, which makes it one of the best Reddit stocks to buy now.
According to Insider Monkey's database of 943 hedge funds, 33 elite funds owned stakes in Carvana Co. (NYSE:CVNA) in Q1 2023, compared with 36 a quarter earlier. These stakes have a total value of over $386.4 million. Spruce House Investment Management was the company's leading stakeholder in Q1 with 10 million shares.
Peloton Interactive Inc. (NASDAQ:PTON) is an American leading technology and fitness company that offers a range of connected fitness products and services. The company's primary focus is on providing interactive fitness experiences through its innovative hardware, software, and content offerings.
According to Redditors, Peloton Interactive Inc. (NASDAQ:PTON) is having a strong year as it reported growth in its memberships. According to the company's fiscal Q3 2023 earnings report, it has over 6.7 million active members. The company is also near its goal of break-even free cash flow by the end of FY23.
At the end of Q1 2023, 38 hedge funds owned stakes in Peloton Interactive Inc. (NASDAQ:PTON), down from 41 in the preceding quarter, according to Insider Monkey's database. These stakes are collectively worth over $540 million.
Tesla, Inc. (NASDAQ:TSLA) is an American electric vehicle (EV) and clean energy company that primarily focuses on the design, manufacturing, and selling of electric cars, energy storage products, and solar energy solutions. Wall Street Journal reported that retail investors spent a net total of $13.6 billion on TSLA as of March 2023, coming close to the previous year's record of nearly $17 billion. The stock is still one of the top buys for retail traders. In addition to TSLA, NVIDIA Corporation (NASDAQ:NVDA) and Apple Inc. (NASDAQ:AAPL) are some other best Reddit stocks to buy now.
At the end of Q1 2023, 82 hedge funds tracked by Insider Monkey owned stakes in Tesla, Inc. (NASDAQ:TSLA), worth collectively $6.4 billion.
