Do You Have These Top Reddit Stocks On Your Watchlist Right Now?
Whether you call it momentum trading or meme stock boosting, Reddit stocks appear to be alive and kicking. After the phenomenon hit the stock market by surprise back in January, Reddit stocks remain trending more than half a year later. Arguably, with a somewhat mixed bag of economic data rolling in, investors could be turning to the more unconventional side of the stock market today.
If you have been paying attention to this section of the stock market recently, chances are you have heard of Support.com’s (NASDAQ: SPRT) monster rally. The technical support company soared around 1,500% year to date. Admittedly, SPRT stock has seen a considerable run-up due to the Bitcoin price rebound. Consider the stock’s high short interest, popularity among traders, and the comeback potential of its soon-to-be underlying business. Many would say this is a Reddit stock with the most potential.
Reddit stocks have no precise description, but they’re not hard to identify. Retail investors are always searching for stocks to send “to the moon”. Common characteristics of these select few stocks include frequent chatter in the subreddit r/Wallstreetbets, sudden rallies, and volatile price swings on unusually high trading volume. With no shortage of activity in the space now, would these Reddit stocks be top picks in the stock market now?
Top Reddit Stocks To Watch In September 2021
- Skillz Inc. (NYSE: SKLZ)
- AMC Entertainment Holdings Inc. (NYSE: AMC)
- Virgin Galactic Holdings Inc. (NYSE: SPCE)
- Upstart Holdings Inc. (NASDAQ: UPST)
Skillz
Mobile-gaming platform Skillz stock skyrocketed on Tuesday afternoon, seemingly out of nowhere. And SKLZ stock could see another rally today if the pre-market trading is of any guide. With no news coming out from the company, it seems that the chatter on Reddit is a possible reason for the jump.
Here’s what happened. A Reddit user claimed that he or she had purchased $4.8 million in SKLZ stock. Certainly, one Reddit user likely can’t move Skillz stock this much individually. But as we’ve seen with other meme stocks in 2021, a strong vote on the popular online forum could lead to an army of retail traders buying the stock.
Skillz is still a young company with a lot to prove. The company’s platform is seamlessly integrated into several iOS and Android games. Through this platform, Skillz facilitates competitions between mobile gamers across the globe. With many games coming to Skillz coupled with strategic investments to bring real-time gaming to the platform, the upside could be tremendous if the company executes well. Considering all these, do you think SKLZ stock is a top Reddit stock to buy now?
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AMC Entertainment
AMC Entertainment is a meme stock that needs little introduction. It is also the largest movie exhibition company in the world. It boasts over 900 theatres and 10,000 screens across the globe. The company has gained the backing of retail traders that have pushed the price of the stock up this year. Impressively, AMC stock has enjoyed gains of over 2,000% year-to-date thanks to this.
Earlier last month, the company reported its second-quarter financials for 2021. Notably, it operated 593 domestic theatres representing 100% of its domestic theatres, and 335 international theatres representing approximately 95% of its international theatres. Revenue for the quarter was $444.7 million.
While these numbers are pointing to a recovery, there are still many challenges ahead for the cinema operator. Right now, the company’s market cap of about $24 billion is far higher than at any point in its pre-pandemic history. With a slow box office recovery with the resurgence of coronavirus cases, it seems tough to justify that valuation. Therefore, would you be keeping an eye on AMC stock?
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Virgin Galactic
Following that, we will be taking a look at Virgin Galactic. For the uninitiated, the company is among the key players in the space tourism industry now. Through its operations, Virgin Galactic is actively developing and refining its advanced air and space vehicles. Given the hype around the idea of commercial space travel, SPCE stock would be a likely name among Reddit stocks now.
If you believe in the potential of the space travel industry, it’s never too late to dip your toes in this space. The successful first fully-crewed space flight in July appears to have sparked a desire in many people to experience the wonders of space. The real question now is, would all this make SPCE stock a wise investment now?
Well, Jefferies analyst Greg Konrat placed a “Buy” rating and a $33 price forecast on the space tourism company. He estimates that Virgin Galactic could produce revenue and operating profits of $1.7 billion and $680 million, respectively, by 2030. The question is, would this make SPCE stock a top buy right now?
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Upstart
Personal loans have gained massive popularity in recent years, and Upstart has really started to see its operations take off this year. For those unfamiliar, Upstart is a growing online leading platform that utilizes artificial intelligence (AI) to automate the lending process. With the company’s platform, banks can provide personal loans using non-traditional variables like education and employment to predict creditworthiness. Upstart’s platform uses sophisticated machine learning models to more accurately identify risk and approve more applicants than traditional credit-score-based lending models.
When the company announced its second-quarter results last month, the numbers took many investors by surprise the best possible way. Revenue was up more than 1,000% from the prior year’s quarter. Besides delivering blockbuster results, the company increased its 2021 full-year revenue guidance, from $600 million to $700 million. And when you have strong growth and positive guidance like this, it’s not surprising to see why UPST stock continues to be the favorite stock in the stock market today. After all, it’s not often you find a relatively young fintech company that also happens to be profitable.
Yet, the company is not resting on its laurels. In late August, Upstart announced a partnership with Patelco Credit Union, a credit union serving Northern California. This would allow Patelco to drive more inclusive lending using Upstart’s AI-powered personal lending solution. With these exciting developments, would you be placing a bet on UPST stock whenever the stock takes a breather?
