Reddit stocks have become more and more popular as we saw penny stocks such as GameStop (GME) and AMC Entertainment (AMC) explode to all-time highs during the ‘meme stock’ frenzy two years ago.
In late January of 2021, GameStop shares rose to nearly $500 before getting halted.
At the same time, AMC Entertainment stock had risen from $2.50 to $22 per share only to peak at $72 five months later in June.
Since then, investors have been wanting to find the next BIG Reddit stocks that might just have the potential to yield +1,000% (thousands) in percentage gains.
While there are never any guarantees, here are 7 Reddit stocks gaining traction that are worth putting on your watchlist this year.
- Mullen Automotive (MULN): Analysts are predicting massive growth in 2023 with signs pointing towards a short squeeze.
- Tesla (TSLA): The growth stock is amongst the most discussed stocks on Reddit; perfect for long-term value investors.
- AMC Entertainment Holdings, Inc. (AMC): AMC’s short interest is still high and more than 93% of shareholders continue to hold the stock this year.
- GameStop (GME): More shareholders are direct registering their shares this year to limit shorting in the company stock and trigger price action from mere buying pressure.
- Amazon (AMZN): Despite a slowing economy, Amazon plans to invest billions of dollars in theatrical film releases and compete with Paramount Pictures.
- Warner Bros. Discovery (WBD): Goldman Sachs and Bank of America highlight an attractive “risk/reward” profile, with the former designating the firm its “favorite media stock.”
- Alibaba Group Holding Limited (BABA): Restrictions overseas are easing, and analysts are forecasting Alibaba to soar nearly 100% this year.
Mullen Automotive (MULN)
Mullen Automotive (NASDAQ:MULN) become one of Reddit’s trending stocks when a case study found that analysts are predicting shares to rise more than +7,000% by the end of the year.
Shares are currently trading around $0.37 but experts say favorable news during the company’s earnings report sometime in February has the potential to trigger a short squeeze.
Analysts predict shares of the automotive company to soar as high as $24 per share by the end of 2023.
Call options have decimated the number of put options on Webull by more than 96%.
Best of all, out of 173 financial institutions investing in Mullen Automotive, only 1 is short with 172 being long.
Share price at time of original publication 1/11: $0.40
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Tesla (TSLA)
Tesla (NASDAQ:TSLA) stock continues to be one of the most trending stocks on Reddit.
Tesla reported 1.31 million deliveries in 2022, a growth of 40% over the previous year.
In the fourth quarter, Tesla reported deliveries of 405,278 vehicles and production of 439,701 vehicles.
That brings Tesla’s 2022 full year deliveries to around 1.31 million vehicles.
In 2021, Tesla reported 308,600 vehicle deliveries in the fourth quarter, and full-year deliveries of around 936,172 vehicles.
Dan Raju, CEO of Tradier, a brokerage platform says, “if and when a market bottom emerges in the first half of 2023, we’d be looking to technology as a fantastic long-term opportunity, given the heavy drawdowns since late 2021.”
Given Tesla’s current low prices, investors all over Reddit stock forums can’t keep it off their watchlist.
Share price at time of original publication 1/11: $123.28
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AMC Entertainment Holdings, Inc. (AMC)
AMC (NYSE:AMC) currently has a high short interest of over 21% according to Fintel.
Company shares seem to have bottomed out around the $4-$4.50 range and shareholders are still holding.
A poll of nearly 4,000 market participants found that more than 93% of shareholders continue to hold their shares or plan to hold in 2023.
The AMC community known as ‘apes’ are determined AMC Entertainment stock will break its current all-time high record by squeezing short sellers again.
Not only does the community have the numbers, but the short interest is the same from 2021 levels when AMC soared to $72 per share.
Although company fundamentals have strongly improved over the past two years, 2021’s massive price surge proved fundamentals don’t necessarily have to be tied to a short squeeze play.
You can read frequently updated AMC breaking news here to stay up to date on the stock.
Share price at time of original publication 1/11: $4.71
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GameStop (GME)
GameStop (NYSE:GME) made its grand debut in January of 2021 shares rose to nearly $500 per share before ultimately getting halted.
But GME shareholders continue to innovate and find ways to re-spark that flame.
And it seems like they’re onto something.
According to GameStop, approximately 30% of GME’s float is registered with the Direct Registration System (DRS).
This equates to 71.3 million retail shares.
Furthermore, Nearly 70% of the float is owned by individual shareholders according to Vickers Stock Research.
This means nearly half of shareholders are on board so far, which is quite impressive.
While DRS certainly prevents the company from being shorted, it’s only one piece of the puzzle for a GameStop short squeeze.
Shareholders will need to create massive buying pressure next.
Share price at time of original publication 1/11: $18.72
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Amazon (AMZN)
Amazon (NASDAQ:AMZN) is reportedly planning to compete with Paramount Pictures in a new venture involving the movie theatre industry.
Last year, experts said Netflix missed out on $200 million in revenue by taking Glass Onion out of movie theatres too early, earning only $15 million.
Amazon.com Inc. will be investing billions of dollars to produce movies that will release in theatres, according to people familiar with the company’s plans.
This is the largest commitment to the movie theatre industry by an internet company, says Bloomberg.
The fact is people are still enjoying the theatrical experience only movie theatres can provide.
And Amazon plans to use the movie theatre industry to its advantage.
Amazon Prime video may potentially pre-release some of these films to subscribers, which could bring in more online streaming customers to the company as well.
Share price at time of original publication 1/11: $93.96
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Warner Bros. Discovery (WBD)
Warner Bros. Discovery (NASDAQ:WBD) rose more than 31% in the first week of 2023 after Wall Street analysts upgraded the company with a modest 63% upside for the year.
“We estimate that WBD is best positioned to drive EBITDA growth, ramp free cash flow and delever its balance sheet in 2023 as it pursues $3.5 billion of merger synergies and relaunches its flagship streaming service,” said Goldman Sachs analyst Brett Feldman.
Meanwhile, Bank of America analyst Jessica Reif Ehrlich reiterated her “buy” rating and $21 price objective on the stock, while adding it to her company’s so-called “U.S. 1 list” of “best investment ideas.”
The Bank of America expert also highlighted positive trends and potential catalysts ahead. “It already appears January advertising trends have improved sequentially (albeit off a modest base) from December levels, and comps would ease as the year progresses,” she wrote.
On Reddit, Warner Bros. Discovery has been discussed amongst the r/wallstreetbets community and several other stock and investing sub-channels.
Share price at time of original publication 1/11: $12.70
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Alibaba Group Holding Limited (BABA)
Alibaba (NASDAQ:BABA) is another Reddit stock that was recently added to Goldman Sachs conviction ‘buy’ list.
Analysts say shares may rise more than 25% this year.
As part of its Nov. 17 earnings report, which showed adjusted profit up 5% year over year to $1.82 a share but revenue down 6% to $29.1 billion, BABA said it’s increasing its share buyback program by $15 billion, on top of an existing $25 billion program.
As of Nov. 16, the company said it already repurchased $18 billion worth of stock under its existing program.
Alibaba’s Composite Rating of 85 (on a scale of 1-99 with 99 being the best) has improved significantly due to the stock’s relative price strength.
The current consensus among 59 polled investment analysts is to buy stock in Alibaba.
Analysts are giving BABA a low of $74.35, mid of $142.70, and high of $220.61.
Share price at time of original publication 1/11: $114.50
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What Other Reddit Stocks Are You Watching?
What other Reddit stocks do you have on your watchlist?
Do you already own any of these trending stocks on this list?
Leave a comment down below.
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