In this article, we discuss the 10 new Reddit WallStreetBets stocks on the rise. If you want to skip our detailed analysis of these stocks, go directly to the 5 New Reddit WallStreetBets Stocks On the Rise.
WallStreetBets, the Reddit forum with more than 10.8 million members, has become one of the hottest places in the world of finance over the past few months. This is evident from the meteoric rise in memberships – the group had only around 1.6 million members in December 2020. On January 28, the group gained a record 1.5 million members in a single night at the height of the short squeeze saga involving video game retailer GameStop. The forum is used by retail investors for market-related discussions.
Some of the most popular stocks on WallStreetBets presently include Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), NIO Inc. (NYSE: NIO), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), among others. Since retail investors do not often see eye to eye with big finance on key investment choices, the group has become a hotbed of activity around meme stocks – firms with little to offer in terms of basic fundamentals but popular because of internet interest.
On August 30, the founder of the WallStreetBets group, Jaime Rogozinski, gave an interview to news platform Kitco News and revealed that he was confident that a new type of exchange-traded product that would let investors with a stake have a say in the asset selection process would soon be launched. Rogozinski even went as far as to call the product “the next meme stock” and said the product would follow a decentralized autonomous organization model. Rogozinski founded WallStreetBets in 2012.
The influx of retail investors on the market has fundamentally altered the dynamics of Wall Street. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
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With this context in mind, here is our list of the 10 new Reddit WallStreetBets stocks on the rise. They…