In this article, we’ll take a look at the 10 Reddit stocks with the biggest upside. To see more such companies, jump to 5 Reddit Stocks With the Biggest Gains,
Rising inflation and frequent rate hikes have finally started showing their true impact. As inflation eats away at the savings of millions of Americans, their ability to accumulate stocks, which peaked after the pandemic caused unprecedented growth in meme stocks and the overall retail investment space, is diminishing. A Bloomberg report last month cited a survey by the American Association of Individual Investors. The survey showed that individual investors are pulling back while institutional investors are investing in stocks. According to the survey, for the first time since June, bearish sentiment overtook bullish sentiment. According to the survey, the share of investors with a bearish view on the stock market for the next six months increased to 35.9%, while the share of investors with a bullish view fell to 32.3%.
The overall performance of the stock market in August was disappointing, due to which retail investors fled the market and withdrew their funds. On the other hand, courtesy of Bank of America, institutional investors and hedge funds bought $4.4 billion worth of shares in a single week in August, the largest inflow among Bank of America clients in two months, according to Bloomberg data. Was. ,
The report said that while individual investors fled the market, they remained bullish on Nvidia and Apple, as well as some other mainstream companies that have become very famous on Reddit.
However, it is likely that individual investors will return to the market once doubts about the Fed’s future policy on inflation fade away and inflation subsides. The Bloomberg report cited Scott Cronert of Citigroup Inc., who said that if the S&P 500 fell to 4,200-4,300, an attractive entry point could be created for investors. The report also cited HSBC Holdings Plc strategist Max Kettner, who said he was waiting for “renewed selling to increase the firm’s U.S. equity exposure.”
Biggest rise in Reddit stocks
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our methodology
For this article we conducted a wide-ranging survey of mainstream financial media and consulted over 10 trusted financial websites to see which stocks popular on Reddit investing threads have the biggest upside potential. Most of these sources surveyed several other famous Reddit investing threads like Invest, WSB, Stock, etc. to see what stocks Redditors were investing in and then analyzed the best stocks among these.
Biggest rise in Reddit stocks
10. NIO Inc. (NYSE:NIO)
Number of hedge fund holders: 19
Chinese EV company NIO Inc. (NYSE:NIO) shares have lost nearly 50% of their value over the past year. But Redditors are still betting that NIO Inc. (NYSE:NIO) will grow in the future. NIO Inc. (NYSE:NIO) recently jumped after the company posted strong delivery numbers for August. NIO Inc. in August 2023 (NYSE:NIO) saw deliveries increase by 81% on a year-over-year basis.
By the end of the second quarter of 2023, NIO Inc. was the leader among the 19 hedge funds tracked by Insider Monkey. (NYSE:NIO). During this period NIO Inc. (NYSE:NIO)’s most significant stakeholder was Ray Dalio’s Bridgewater Associates, which has a $32 million stake in the company.
9. Chindata Group Holdings Limited (NASDAQ:CD)
Number of hedge fund holders: 22
Data center solutions company Chinadata Group Holdings Ltd. (NASDAQ:CD) ranks 9th on our list of the best Reddit stocks with gains.
As of the end of the second quarter of 2023, 22 hedge funds in Insider Monkey’s database of 910 hedge funds were long Chindata Group Holdings Ltd. (NASDAQ:CD).
In the latest earnings call Chinadata Group Holdings Limited (NASDAQ:CD) talked about its future plans:
“…In the second half, we are probably going to spend an additional RMB4 billion or RMB6 billion. I think — we think this potential increase or increased spending will be a good news for everybody. Why is this good news? Because it is driven by the progress of some incremental pipeline project, new project, which the company is optimistic to achieve in the second half of this year.
And these pipeline projects may bring better revenues and EBITDA for future years. Not necessarily this year 2023, but in the future years 2024 and ’25, beyond previous estimates. Also, and a big one — a significant portion of this incremental pipeline projects, again not projects that we have disclosed, these projects are really driven by our overseas business. In other words, overseas projects will have more shares than expected and this basically means unit capex will increase accordingly. So obviously, the timing of the expenditure may vary around the end of 2023 or the beginning of 2024. So a portion of the $1.3 billion that you saw in those privatization documents and a very small portion of it, may be carryover to 2024 for spending. But at an aggregate level, if you add together 2023 and 2024 capex, it should remain the same.
Read the entire earnings call transcript here.
8. C3.ai, Inc. (NYSE:AI)
Number of hedge fund holders: 23
C3.ai, Inc. (NYSE:AI) is one of those stocks that saw huge gains earlier this year amid the AI boom. Many said that most of the profits were due to speculation and the company having “AI” in its name. Recently, C3.ai, Inc. (NYSE:AI) said it won’t become profitable until the fiscal fourth quarter of 2024. Wedbush Securities analyst Dan Ives said C3.ai, Inc. (NYSE) from $50 to $42. :AI) but retained the outperform rating.
Ives believes increased spending will be an issue in the near term, but he “views the investment profile as one that outweighs near-term pain for long-term gain and is looking at building pipeline C3 into the region.”
Hedge fund DE Shaw owned C3.ai, Inc. as of the end of the June quarter. There are over $32 million worth of PUT positions on AI.
7. DTE Energy Company (NYSE:DTE)
Number of hedge fund holders: 27
Detroit-based energy company DTE Energy Company (NYSE:DTE) ranks 7th on our list of the best Reddit stocks with bullish potential. DTE Energy Company (NYSE:DTE) has declined in value by approximately 24% over the last 12 months. Barclays recently published a bullish note on the broader utilities and power industry and named several of its favorite stocks in the sector. Barclays likes DTE Energy Co (NYSE:DTE) due to regulatory de-risking by 2H2023.
As of the end of the second quarter of 2023, 27 hedge funds tracked by Insider Monkey had a stake in DTE Energy Company (NYSE:DTE).
Management at DTE Energy Company (NYSE:DTE) talked about DTE’s guidance in the second quarter earnings call:
“Through the performance of our portfolio, we plan to achieve the midpoint of our operating EPS guidance range for DTE and we will update business unit guidance once the summer season begins. Our guidance assumes historically average weather for the remainder of the year without the normal contingencies we typically plan for. Our team has made really excellent progress in identifying and implementing opportunities in one-time O&M reductions across the company while ensuring the reliability and safety our customers expect. This allows us to continue delivering for all our stakeholders. This year’s performance will allow us to remain very well positioned to achieve our long-term EPS growth and the premium returns that our shareholders expect from us.
Read the entire earnings call transcript here.
6. Tesla Inc. (NASDAQ:TSLA)
Number of hedge fund holders: 79
Tesla Inc. (NASDAQ:TSLA) remains one of Redditors’ favorite stocks. After all is said and done, Tesla Inc. (NASDAQ:TSLA) remains a major player in an industry that has nowhere to go but up. Recently, Tesla Inc. after Morgan Stanley upgraded the stock. (NASDAQ:TSLA) shares surged. Morgan Stanley analyst Adam Jonas likes Tesla Inc.’s (NASDAQ:TSLA) AI capabilities behind the company’s much-hyped Dojo supercomputer. Jonas thinks that the supercomputer Tesla Inc. (NASDAQ:TSLA) market cap to a massive $500 billion as they see the system having the potential to open up new revenue sources due to the adoption of robotaxis and software services.
As of the end of the second quarter of 2023, 79 hedge funds tracked by Insider Monkey reported holding a stake in Tesla Inc. (NASDAQ: TSLA). Tesla Inc. (NASDAQ:TSLA)’s biggest hedge fund stakeholder was Katherine D. Wood’s ARK Investment Management, which has a $1.3 billion stake in the company.
Baron Partners Fund downgraded Tesla, Inc. in its Q2 2023 investor letter. (NASDAQ:TSLA) made the following comments:
Several factors contributed to the strong performance of our largest disruptive growth position, Tesla, Inc. (NASDAQ:TSLA), over the period. Investors’ concerns about Tesla in 2022 are fading, and the company’s business continues to grow materially, albeit at less than peak margins. Tesla deliveries in China are going well. The company’s newest factory in Texas has increased production and should contribute to better domestic sales and margins. US government policies have reduced the cost of Tesla vehicles, as well as reduced the company’s battery production expenses. We believe Tesla is only scratching the surface of its potential. We view the partnerships announced between Tesla and its competitors this quarter as important. In early June, Tesla agreed to provide Ford Motors with access to Tesla’s electric vehicle (EV) charging technology and network. Other traditional and pure EV makers, including General Motors, Rivian and Volvo, quickly followed suit. We hope to secure additional charging partnerships. In our view, these relationships make Tesla’s charging technology and infrastructure superior by other standards. Consolidation around a single technology should speed up the deployment of charging infrastructure, reduce the risk of Tesla’s technology becoming obsolete, and ease a major concern of hesitant EV buyers. EV adoption is at a tipping point. And Tesla, with nearly 60% domestic market share of EVs, should be the most significant beneficiary of this shift…” (Click here to read full text)
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Disclosure: None. 10 Reddit stocks with the biggest gains Originally published on Insider Monkey.
Source: finance.yahoo.com
