5 Stocks Reddit’s WallStreetBets Are Focused
Thanks to the social media giant Reddit and various investor boards, the frenzy of stock buying and selling cannot be denied. The downside is the frenzies, whether buying or selling, don’t tend to last for long. Still, if you’re not watching what stocks are hot and what stocks are not on Reddit, you could be missing a huge opportunity to profit.
There are currently 5 “meme” stocks on Reddit’s WallStreetBets bulletin board that should be on your radar. These are the five companies getting the most chatter and are the most mentioned tickers, courtesy of real-time Reddit ticker analytics site YoloStocks.
AMC (NYSE: AMC): The AMC "Ape Board" on Reddit has focused on the end of the pandemic as a huge catalyst for the theater company that owns and operates approximately 1000 movie theatres that feature approximately 10,700 screens in the United States and around the world. The company was founded in 1920 and is headquartered in Leawood, Kansas. The belief that the end of the Covid-19 pandemic has delivered a steady and dramatic series of rallies and sell-offs over the past few weeks.
For example, last week, after the “AMC Apes" on Reddit driving AMC from the mid $40 a share to nearly $60 a share last Tuesday, June 8, 2021, the company’s shares fell as the dialogue faded in the days that followed to less than $44 a share by last Friday. The decline didn’t last long. The AMC Apes rekindled the discussion on their Reddit board and quickly rallied AMC back over $60 today, and it was trading for over $61 a share as of noon today, Tuesday, June 15, 2021.
Meanwhile, the GameStop gorillas and other HODLers have once again focused on the original meme stock GameStop (NYSE: GME), and as a result, after dropping in price from $337 last Tuesday to less than $214 a share in response to the company announcing it’s under investigation by the SEC. The company briefly rallied to over $300 a share the next day. But the rally has fizzled, and the weight of the SEC investigation has sent the company’s share back down to $214 a share.
GameStop has ridden this kind of roller coaster several times in the past month. Still, 10% of the conversations on both the GameStop gorillas and other HODLers boards the overhang of the SEC investigation may make it impossible for the company’s shares to rally back over $300 a share until the company gets the green light from the SEC. `
One of our favorite technology stocks, Blackberry (NYSE: BB), is also one of the quieter meme stocks despite it having jumped in the last several days from being the sixth most discussed stocks on the Reddit boards to third; dominating 10% of the conversations led to the company’s shares jumping from $8.59 a share on May 25 to $17.84 a share on June 3. The stock has since slid back to $13.93 in the last few days. Keep in mind the final big push on Reddit boards sent Blackberry to $28.77 a share interday on January 27, 2021, a few months ago. We expect another big surge of interest on the “meme stock” and allow for the possibility of it rising back over its January 27 close of $25.10 a share.
ContextLogic (Nasdaq: WISH) is another favorite meme stock on the Reddit bulletin boards: The e-commerce platform (Wish.com) specializes in dirt-cheap products, and while the company’s shares haven’t been a barn burner for much of this year so far, it has caught the eye of Reddit crowd and is currently garnishing approximately 6% of the mentions on Reddits WallStreetBets board. The firm’s shares are trading for $11.27 at this point, but it has a Yahoo 12 month price target of $18.44. Think of WISH as an online dollar store.
Cleveland-Cliffs (NYSE: CLF) has been the focus of 5% of the subreddit’s mentions primarily because the Ohio-based company is a potential infrastructure play that could benefit handsomely if the Republicans and Democrats in Washington can agree on the desperately needed infrastructure spending. The company produces flat-rolled steel, which it mines from its iron ore mines. CLF is trading for $21.88 a share today of a 52 week high of $24.77 a share. It’s up from a 52 week low of $4.80 that was hit as all hell was breaking lose last March when the Covid-19 pandemic was at the forefront of investor fears. If the ongoing infrastructure talks break down, we expect to see shares in CLF fall as much as $10 a share. CLF may be a meme stock, but even Yahoo has a target of just $24.62 a share. Any negative news on infrastructure negotiations in Washington could be a catalyst for as much as a 40% sell-off.
Clover Health (Nasdaq: CLOV) soared from $13 a share to over $28 last Wednesday, only to fall back to earth the same day. The stock fell from the eighth most mentioned stock, with 4% mentions, to less than 1% in recent days. Clover operates as a Medicare Advantage insurer in the United States and features a software platform that provides preferred provider organization and health maintenance organization health plans for Medicare-eligible consumers. The sudden interest and sudden abandonment of this meme stock should be considered a big negative.