Online discussion platform Reddit has deployed the third generation of its blockchain-based digital collectibles dubbed “Reddit Avatars” on its platform. The move comes as Reddit’s popularity continues to grow among retail investors, who have been using the platform to discuss and share investment ideas. In recent years, Reddit has become a hub for “meme traders” who use the platform to coordinate trades and drive up the value of certain stocks.
Whether driven by Reddit users or tactical traders, volatile short squeeze stocks can generate huge returns. These stocks, which are heavily shorted by institutional investors, can experience sudden price surges when retail investors coordinate to drive up the stock price. This was seen earlier this year with GameStop, which saw its stock price soar as Reddit users coordinated to buy up shares and squeeze out short sellers.
Reddit investors have been the butt of many jokes over the last few years, but could these much-maligned meme traders have the last laugh? While the mainstream investment community has dismissed the tactics of Reddit traders as reckless and irresponsible, their success in driving up stock prices has not gone unnoticed.
In addition, 46% of investors said they expected to increase their use of Reddit, a Brunswick Group survey found. This suggests that the platform’s influence on the investment community is only set to grow in the coming years.
While the Reddit forum WallStreetBets started out as a way for mavericks to exchange tips that go against traditional investment advice, it has since become a powerful force in the stock market. WallStreetBets has been credited with launching the meme stock rally, which saw the value of certain stocks soar as retail investors coordinated to drive up their price.
Can the company that launched the meme stock rally be a good investment itself? Reddit is credited with being the breeding ground for some of the most successful meme stocks of the past year, including GameStop and AMC Entertainment. As such, some investors are betting that the company’s stock price will continue to rise as it becomes more influential in the investment community.
In this article, we will take a look at the 12 best Reddit stocks to invest in. Reddit has emerged as an important platform for investors in recent years, with users sharing tips and insights on everything from individual stocks to broader market trends. By analyzing the most popular stocks on the platform, we can gain insight into which companies are most likely to see their stock prices rise in the coming months.
Alphabet (GOOG, GOOGL): Recent events may be a mere smokescreen for Google's long-term growth potential. Walt Disney (DIS): Investors should watch for Disney's streaming strategy. Tesla (TSLA): With a market cap of over $700 billion, Tesla is one of the most valuable companies in the world. Apple (AAPL): Despite a recent dip in share price, Apple remains a dominant force in the tech industry. Amazon (AMZN): Amazon's e-commerce dominance and cloud services make it a strong investment choice.
Other notable Reddit stocks include GameStop (GME), which saw its stock price soar earlier this year thanks to coordinated buying by Reddit investors. AMC Entertainment (AMC) is another popular Reddit stock, with some investors betting that the company can rebound from its pandemic-related losses.
At long last, the Reddit retail investors may finally be enjoying their day in the sun: Major institutional investors are taking note of the power of the retail investor. With the rise of meme trading and the growing influence of Reddit in the investment community, it is clear that retail investors are no longer an afterthought in the market. As such, it is likely that we will see more coordinated buying and short squeezes in the coming years, as retail investors continue to flex their muscles and push back against the established investment community.