What’s the market power driving the most popular Robinhood shares and Reddit shares? It might have been finest summed up by the Wharton Enterprise College’s Sasha Indarte, who described it as individual investors congregating on social media and acting on their own, however with a standard motive. “They grouped collectively on Reddit, Discord, Fb, Twitter and different platforms to drive sharp surges within the inventory costs.”
But, there are nonetheless alternatives for a number of the following seven hottest Robinhood and Reddit shares to see some aggressive value motion within the foreseeable future:
- TherapeuticsMD (NASDAQ:TXMD)
- CEL-SCI Company (NYSEMKT:CVM)
- BlackBerry Restricted (NYSE:BB)
- Sundial Growers (NASDAQ:SNDL)
- Virgin Galactic Holdings (NYSE:SPCE)
- Nokia Company (NYSE:NOK)
- Palantir Applied sciences (NYSE:PLTR)
Robinhood and Reddit Shares: TherapeuticsMD (TXMD)
TherapeuticsMD inventory, which has moved 36% increased this 12 months, is presently the highest title amongst “100 Most Popular” Robinhood shares. TXMD inventory has additionally been actively mentioned amongst Reddit shares with present quick curiosity of 24.53%.
In accordance with the Reddit group, the stock ranks 41st among the most-shorted stocks. Given the sentiment amongst Robinhood and Reddit merchants, I cannot be shocked if TXMD inventory surges from present ranges of $1.81.
Even from a elementary perspective, TherapeuticsMD is enticing. The corporate is concentrated on girls’s healthcare and has launched three merchandise within the final two years. With a guidance on EBITDA improvement through the year, TXMD inventory has a purpose to rally.
It’s price noting that women’s healthcare space has witnessed a rise in merger and acquisition exercise. TherapeuticsMD is a possible acquisition candidate with a product portfolio throughout girls’s well being life cycle.
General, TXMD inventory isn’t just a speculative guess. There are causes to contemplate the inventory for the medium-term. Given the curiosity the corporate has generated within the current previous, a brief squeeze can ship the inventory surging.
CEL-SCI Company (CVM)
CEL-SCI inventory is one other title amongst scorching Reddit shares that has already seen some value motion. For year-to-date fiscal 12 months 2021, CVM inventory has surged by 113%. With present quick curiosity of 28.4%, the Reddit military is more likely to stay .
Final month, the corporate’s CEO additionally tweeted on “how the shorts have devastated companies with novel ideas.” Earlier in January 2020, the corporate additionally commented that “final study results of the ongoing Phase 3 study for Multikine will show its scientific idea of immunotherapy in head and neck most cancers sufferers.”
Subsequently, if the corporate does report optimistic information, I count on a large quick squeeze. It’s subsequently not shocking that CVM inventory is among the many scorching Reddit shares. The inventory has already doubled after an prolonged interval of sideways strikes. One other 100% transfer from present ranges won’t be too distant.
From a enterprise perspective, the company has an attractive product pipeline. The corporate’s L.E.A.P.S know-how for pandemic flu remedy, breast most cancers and rheumatoid arthritis are in a pre-clinical stage. As soon as the lead candidate is accredited, money flows can speed up the pipeline improvement.
BlackBerry Restricted (BB)
Nonetheless, the inventory surged to a excessive of $25.10 and has corrected to simply above $12 a share. I’d not be shocked if there may be one other large spike. Just lately, billionaire Mark Cuban revealed that his 11-year-old son made trades in BB stock with the Reddit group. That is most likely a sign of the extent of euphoria and frenzy.
From a monetary perspective, BlackBerry reported software program and companies income progress for Q3 2021. Throughout the quarter, the corporate additionally generated optimistic free money flows. Blackberry has been reworking itself with concentrate on cellular safety. In Q3 2021, the corporate launched Cyber Suite, which is a “highly competitive against both traditional and next-gen players in the cybersecurity market.” It stays to be seen if this could top-line speed up progress within the coming quarters.
General, BB inventory remains to be extra speculative than a elementary guess. Nonetheless, it’s among the many scorching Robinhood and Reddit shares. That could be sufficient to set off one other sharp upside.
Sundial Growers (SNDL)
Sundial Growers inventory is one other title that’s well-liked amongst Robinhood inventory and Reddit shares. From a low of 14 cents in October 2020, SNDL inventory has already surged to $1.20. I imagine that there’s extra juice within the rally for this scorching hashish inventory.
I do count on SNDL inventory to proceed trending increased. Nonetheless, the inventory is greater than only a speculative guess. Just lately, the corporate elevate $100 million through a registered offering. I imagine that the corporate is at an inflection level when it comes to top-line progress. Doubtless, SNDL inventory can be among the many high picks from the hashish sector.
As an summary, Sundial is a supplier of premium hashish merchandise for customers, with a concentrate on inhalables. The corporate’s merchandise come within the type of flower, pre-rolls, vapes, oil and topicals. Upcoming merchandise embody cannabis-infused chocolate bars and drinks.
Sundial has ramped-up advertising and marketing efforts. That is mirrored in a 120% progress in gross sales and advertising and marketing bills for Q3 2020 on a year-on-year foundation. As model visibility will increase, top-line progress acceleration is more likely to observe.
Sundial can be increasing into medicinal hashish by 50% fairness curiosity in Pathway Rx. That is more likely to be one other engine for income progress within the subsequent few years.
Whereas SNDL inventory is among the many scorching Robinhood and Reddit stock picks, I imagine that some long-term publicity must be thought of. With hashish business tailwinds, the inventory may give multi-fold returns within the subsequent few years.
Virgin Galactic Holdings (SPCE)
As Virgin Galactic inventory has gained 126% within the final month, it’s no shock right here that the inventory is a well-liked title amongst Robinhood inventory picks and Reddit inventory chatter. It’s price noting that even after the large rally, SPCE inventory nonetheless has quick curiosity of 29%. This issue is more likely to social media-chattering investors interested.
When it comes to enterprise improvement, there are optimistic catalysts. The corporate’s test-flight window has been scheduled for mid-February. It’s additionally anticipated that “founder Richard Branson will board the third test flight into area, which might occur someday within the first half of 2021.” Success of check flights can set off additional upside for SPCE inventory.
The corporate had additionally offered an perception on the potential demand. The corporate had 600 future astronauts, as of July 2020. This implied whole deposits of $80 million. If the roster of registered wanna-be vacationers swells within the coming quarters, the inventory momentum is more likely to maintain.
General, SPCE inventory is among the many scorching shares with a pipeline of stories coupled with curiosity from millennial merchants.
Nokia Company (NOK)
Nokia inventory has additionally elevated in recognition amongst Robinhood shares. It’s additionally among the many broadly mentioned and traded r/wallstreetbets stocks.
When it comes to inventory motion, NOK inventory did have a pointy features to above $7. Nonetheless, it shortly corrected again to beneath $5 a share. A possible purpose for the pullback was Robinhood’s trading restrictions on NOK inventory.
Curiosity within the inventory amongst merchants can hold NOK inventory unstable. Nonetheless, the inventory is way from being only a speculative guess. The corporate reported its fifth-consecutive quarter of positive free cash flow in Q3 2020. Within the cellular networks enterprise phase, 5G is more likely to be the sport changer for Nokia. Elements like 5G patent and patent licensing can make sure that FCF swells within the coming years. I’m additionally bullish on the corporate’s cloud and community companies enterprise.
General, Nokia is in a enterprise transformation stage. If 5G can speed up top-line progress and supply money stream upside, NOK inventory can ship multi-fold returns. It’s more likely to stay a scorching inventory amongst Robinhood and Reddit inventory merchants.
Palantir Applied sciences (PLTR)
Palantir Applied sciences inventory was first listed in September 2020 at $9.50; 5 months later, the share value has greater than tripled to over $32. With this value motion, PLTR inventory must be among the many hottest Reddit shares. Additional, the inventory has persistently discovered place among the many top-100 Robinhood shares.
From a progress perspective, Palantir has delivered wholesome numbers. For Q3 2020, the corporate reported income of $289 million, which was higher by 52% on a YoY basis. Additional, working revenue for the interval was $73 million as in comparison with an working stage lack of $92 million for Q3 2019.
Palantir has additionally been steadily securing contracts. Just lately, the corporate signed a multi-year enterprise partnership with Rio Tinto (NYSE:RIO). Regular contract influx will enhance the income and money stream visibility. With worldwide growth, it’s very possible that the corporate’s income visibility will proceed to extend.
Regardless of the positives, PLTR inventory presently trades at a frothy ahead price-to-earnings ratio of 458. A correction is probably going and it will present a great long-term entry alternative.
On the date of publication, Faisal Humayun didn’t have (both instantly or not directly) any positions in any of the securities talked about on this article.
Faisal Humayun is a senior analysis analyst with 12 years of business expertise within the subject of credit score analysis, fairness analysis and monetary modelling. Faisal has authored over 1,500 inventory particular articles with concentrate on the know-how, power and commodities sector.