Leveraging Reddit’s Trending Stocks
Reddit is a very influential social media platform and is popular for being able to rally different persons towards a common goal. As a side effect of its popularity and community-driven approach, Reddit has the ability to influence real-life events across different fields. For example, Reddit is notorious for influencing the real-life directions of stocks. As such, many people look to figure out what stocks are trending on Reddit or Reddit trending stocks to purchase them in hopes that they increase in value. How does Reddit achieve this?
Reddit is a popular content aggregator website boasting hundreds of millions of users across several communities. Communities on Reddit, called Subreddits, are usually niche and discuss a very specific topic or group of topics. For example, there are Reddit communities on Sports - r/Soccer, Anime - r/Anime, wallpapers - r/Wallpapers, and stock trading - r/WallStreetBet
r/WallStreetBet is the relevant community here. According to Wikipedia, it is a subreddit “where participants discuss stock and options trading. It has become notable for its colorful and profane jargon, aggressive trading strategies, harassment, and for playing a major role in the GameStop short squeeze that caused losses for some US firms and short sellers in a few days in early 2021.” Other relevant communities on the platform include r/Stocks and r/Investing.
How can Reddit influence the stock market?
Stock prices essentially increase and reduce in value in response to the basic laws of supply and demand. If there is a higher demand for a certain stock, it will typically increase in value. Inversely, the stock’s value will reduce with less demand for it. Reddit’s stock and investing-related communities can influence - and have influenced - stock prices by creating considerable demand for the stock, thereby causing it to increase in value. This has caused several persons to take interest in Reddit trending stocks to monitor them in case of a potential increase in price.
Reddit trending Stocks may also result from the platform’s stock-related communities short-squeezing a particular stock. Shortsqueezing occurs when a stock that has been heavily shorted unexpectedly gains value and subsequently increases in price. This typically forces short sellers to act quickly and limit their losses by buying the stocks, subsequently increasing their demand and further driving up their value.
A recent example of this phenomenon is the Reddit’s popular GameStop occurrence back in January 2021. GameStop, a video game retailer based in the United States, grew by over 700% during an attention-drawing period at the end of January. GameStop had been at the end of several short-selling as many investors expected its value to reduce across the coming days. As Redditors and other retail traders noticed GameStop, they also noticed how significantly shorted the stock was. In response, several members of the WallStreetBets community began buying GameStop shares. As a result, it become a trending Reddit stock with its value rising quickly. As a result, GameStop’s value increased by more than 8000 per cent across a six-month period. Its shares consequently went from trading at around $43 to as much as $380, resulting in it being one of the highest traded stocks on the market.
Noting the future potential of r/WallStreetBet, experts have said that the community’s emergence signals the beginning of a strong new force as several thousand retail investors discover influence by acting together and going with one another into a significant trade. An implication of this is that these communities may act as a check on other bigger market forces, like hedge funds.
Identifying Reddit trending stocks
Identifying Reddit trending stocks is essential if you want to leverage their information to make vital trading decisions. Several platforms, including this website, have already collated some of the top popular Reddit stocks for your perusal. However, you can follow these steps if you want to identify these trending stocks yourself:
Go to investing communities
The first step in finding popular Reddit stocks to look for communities that discuss stocks and investment opportunities. Examples include the popular r/WallStreetBet. r/Investing, r/Stocks, and many more. Ideally, you search out the community via the search bar on the desktop website's top middle of your screen.
After that, you click on the community to go to its homepage. Here, you will find the join icon next to the community’s name. Click on it to join the community.
Alternatively, if you would rather browse through its posts rather than join the community, it is essential that you sort the posts by new rather than hot to identify new trends rather than older trends. By default, most subreddits sort their content by hot. This sorting prioritizes posts with the most upvotes relative to the time of post. As a result, click " New" next to “Hot” to sort the community’s content by their recency.
After discovering the relevant content, go through them to surmise the stocks being discussed and why they are being discussed. This is because not all popular Reddit stocks trend due to an imminent rise in value.
Popular Reddit stocks groups
If you are seeking trending Reddit stocks, it is important to understand where you can find logical and valuable discussions on Reddit if you want to glean investment ideas off the platform. As such, here are some Reddit communities where you can find valuable investment information and resources:
r/WallStreetBets
We already discussed r/WSB earlier. However, several of the new and popular Reddit stocks that have gone on to produce market-beating returns were first discussed in the community, as the subreddit has more than 12 million members.
Retail traders comprise the community’s primary demographic and are typically willing to invest in risky assets. You can filter the community by different categories, such as losses, memes, and due diligence. WSB also has a thread where member-investors can discuss trades they consider placing and get feedback.
r/pennystocks
As you may have guessed from the name, the community primarily discusses the most popular Reddit penny stocks. Penny stocks are stocks that are valued at less than $5, usually from small companies. By their nature, these stocks are considerably risky, but they also contain the potential for incredible returns. The community boasts more than 1.8 million members and operates an open policy regime. As a result, you may find both serious and humorous posts in the community. r/pennystocks also contains a wiki section that details all relevant fundamental information for penny stock investing for beginners.
r/StockMarket
Another important Reddit stock group is r/StockMarket. Like r/WSB, this group discusses the stock market with about 2 million members. Unlike r/WSB, however, r/StockMarket approaches its discussions more seriously. As a result, you are more likely to discover more thought-out discussions here.
Tips to employ while researching Reddit trending stocks
Discovering popular Reddit stocks require that you employ due diligence while conducting your research on Reddit. Here are some tips you can employ to ensure you are consuming accurate information:
Corroborate claims on the communities
It may be challenging to verify the credibility of posters across these communities, leading to uncertainty around the posters and the content of their posts. As such, ensure you try to corroborate reports you find on the communities from other sources, preferably internally and external to Reddit. This can help you determine an assertion’s accuracy leading you to rely on it for vital predictions.
Read the comments for contrarian views
Reddit can be subjected to the groupthink mentality, where users significantly upvote comments and posts that echo their opinions while downvoting comments that offer contrary opinions. Due to the excesses of groupthink, ensure you seek contrary opinions too to get a wider perspective on the popular Reddit stock. This can be challenging, especially as Reddit tends to hide posts that have been heavily downvoted, and sometimes rightly so. Furthermore, these downvoted opinions may be so because they do contain incorrect or misleading information. Nevertheless, ensure you go through these opinions too, as you may discover interesting insights from them.
Invest with what you can afford to lose
Because many of Reddit’s trending stocks are usually risky, investing in them only with amounts you are willing to lose is advisable. As an extension, investing in these stocks with loans or monies belonging to someone else is also not advisable. You should also know when to cut your losses to ensure you do not lose huge sums.
Leverage tools to help you find trending Reddit stocks
Obviously we are biased. However, we think Notifier is an amazing tool to help you find trending Reddit stocks and be notified of mentions of them. And unlike a lot of trending reddit stock tools we crawl the entirety of Reddit!
How and why do we do that? By ingesting the entirety of Reddit (and a lot of other platforms) we give a much more complete picture of what Stocks are trending on the internet!
In fact we are working on expanding the above table to analyze our entire dataset and give you a much more focused few on stocks, cryptos, and whatever-you-want that are trending across the internet.
Want to learn more? Simply register an account by visiting here.
Want a feature added that we do not have yet?
Examples of Trending stocks on Reddit
As discussed, Reddit has evolved into a useful resource for potential equity traders because of the sudden growth of aforementioned subreddits like r/WallStreetBets and r/Investing. As such, here are some of the popular and trending stocks on these Reddit communities:
Battle Infinity
Battle Infinity is a popular Reddit stock that has been touted as one of Reddit's best cryptocurrencies to buy right now. It is a gaming platform that hosts various users on its metaverse platform, the Battle Arena. The digital asset’s objective is to revolutionize the gaming world through executing blockchain-based and metaverse programmes to provide a decentralized platform to creators and users.
The primary utility token of the Battle Infinity asset is the IBAT coin, developed on the Binance Smart Chain (BSC) as a BEP-20 protocol. It is a monetary token deployed on six P2E gaming platforms that the stock offers. An example of the platform is the IBAT battle swap, a decentralized exchange that enables users to swap IBAT tokens for different crypto assets. There are also other platforms, such as the IBAT Battle Games. It is a multiplayer game store that enables its users to access several NFT games, with the chance to win tokens by joining various games.
Users can also use the platform’s tokens to advertise billboards inside the Battle Infinity program. Likewise, 50% of the tokens received from transaction fees are typically transferred to global staking pools to provide the developers and users with liquidity. The game is also preparing for an exciting future as it intends to get listed on PancakeSwap, a popular decentralised exchange.
Tesla (NASDAQ: TSLA)
Another popular Reddit stock you can invest in is Tesla. Tesla is the electric automobile manufacturing giant. The company is run by Elon Musk, who has rebranded Tesla into an automobile powerhouse, pushing the outfit to a $1 trillion market cap in 2021.
Despite this, the TSLA share price has dropped by more than 45% between May and June, Many persons have attributed the drop to several factors, including Elon Musk’s takeover bid for Twitter and the cessation of production at Tesla’s Shanghai Gigafactory. The takeover bid with Twitter played a huge role in the drop as Musk sold $8 billion worth of TSLA stock to fund the bid– causing the stock to turn bearish.
Nevertheless, many people still prefer to buy the popular Reddit stock due to its long-term potential. For example, the automobile giant currently controls more than 15% of the electric vehicle market and has improved its 2022 Q1 revenues by 73% in Q1 2022, relative to Q1 2021. Finally, given that Tesla announced another stock split earlier this year, there’s scope for shares to become more accessible, increasing the number of investors.
GameStop (NYSE: GME)
Another widespread trending Reddit stock is the already popular GameStop. As we have discussed above, the game retailer has enjoyed a very exciting 18 months, facilitated primarily by the ‘short-squeeze’ that occurred in January 2021. This short-squeeze caused GME shares to climb by 2,712% within weeks, an unprecedented move in the stock market.
While the trending Reddit stocks are 81% down from their January all-time high value, many Reddit investors still believe in the company’s potential. Furthermore, GameStop launched a non-custodial Ethereum wallet capable of storing both NFTs and cryptos - ‘GameStop Wallet’. Despite the assets having suffered hits lately, the game retailer appears to be hedging on their recovery – which may be lucrative in the long run.
Zoom Video Communications (NASDAQ: ZM)
Zoom has been a popular trending Reddit stock over the last few years, primarily influenced by the company’s useful video and communication offerings. Zoom’s usefulness was particularly leveraged during the pandemic’s peak as it enabled people to connect and interact with one another. This usefulness helped to facilitate the ZM share value to an all-time high of $588.34 in October 2020. However, the prices have dropped by around 83% since then.
However, many Reddit investors still believe that the video communications company is a very undervalued stock on the stock market. Zoom recently published its fiscal Q1 2023 outcome, demonstrating a 12% revenue growth relative to the previous year. The company also increased its enterprise customers by 24%. As enterprise customers is one of Zoom’s essential revenue drivers, this customer increase is vital to the company.
Zoom’s adjusted Earnings Per Share (EPS) also surpassed analysts’ calculated estimates at $1.03 – prompting its management to increase its guidance for the rest of the year. Reddit investors found these results to be favourable, as many r/Investing members discussed whether the video communications service could be preparing for a rebound. Nevertheless, Zoom’s recent performance growth makes its shares an important and popular Reddit stock to monitor at the moment.
Snap Inc (NYSE: SNAP)
You may be familiar with this company’s most popular product, Snapchat, which has become a popular social media platform since 2011. Since 2011, Snap Inc has remained innovative across its fields as it kept developing other products than the app. One of such projects was a pair of smart glasses called ‘Spectacles’. In addition, Business Insider noted that the Snapchat creator would soon launch a ‘mini drone’ called Pixy.
However, with SNAP shares reduced by 84% relative to its previous all-time highs in September 2021, the company seems to be following the same fate as other popular Reddit stocks. Furthermore, Snap has suffered from the supervening ‘risk-off’ market nature, likewise other growth stocks. This has also come alongside recent interest rate raises from the Feds forcing Snap’s management to reduce its guidance for Q2 2022.
Despite this, the company’s Q1 2022 results offer some reasons to be optimistic. This is primarily as its revenue climbed above $1 billion, representing a 38% increase from the last year. Furthermore, its daily active users (DAU), an essential yardstick for a social media platform, increased by 18%. Overall, while the company is suffering from the prevailing macroeconomic circumstances, Snap inc still has solid fundamentals that will be instrumental in its rebound.
Best Buy Co (BYSE: BBY)
Another popular Reddit stock in 2022 is Best Buy. The company is a consumer electronics retailer with more than 1,100 locations across Canada, the U.S., and Puerto Rico. Several Reddit investors agree that Best Buy is a very cheap popular Reddit stock on the market. This consensus is mostly driven by the fact that its share values are down from its November 2021 all-time high by 48% from November.
Best Buy is currently treated as a ‘meme stock’ on r/WallStreetBets, even though many do not know why several users like the company. Objectively, Best Buy indeed seems to be experiencing unfavorable conditions resulting from the prevailing consumer environment, as increasing inflation has been inimical to budget retailers. As a result, in its Q1 2022 earnings report, Best Buy lowered its full-year guidance.
Despite this, these poor financials are likely a direct consequence of the macroeconomic factors rather than related to the company’s business model. This serves as a cause for optimism as it hints that Best Buy could experience success again after the economy picks up. As a result, many users have added the company’s shares to their watchlists.
Twitter (NYSE: TWTR)
Twitter has been subject to regular discussions on several popular subreddits even before Elon Musk’s protracted takeover bid. However, before Musk’s Twitter purchase offer, the company had began to fade away, with the social media platform’s CEO Jack Dorsey stepping down. While Twitter was previously one of the popular tech stocks, its reduced user growth and increased bot accounts saw the platform slowly lose its pull. However, Musk’s $46.5 billion free speech-driven takeover bid has resulted in discussions across stock groups like r/WallStreetBets and r/Investing.
There have been speculations that Twitter may become more crypto-friendly If Musk’s takeover is successful. Speculators have also pointed to the recent upgrade allowing users to tip in BTC as evidence of the potential crypto transformation. In addition to these crypto-friendly upgrades, users can also include their wallet addresses in their Twitter bio. Enhancements like these may improve the user experience and attract a new demographic of crypto-savvy users. This may consequently boost Twitter’s user growth in the long run, increasing the value of the trending Reddit stock.
Palantir Technologies (NYSE: PLTR)
Palantir Technologies is a US-based software company founded by Peter Thiel, PayPal’s co-founder. The software company’s primary focus is ‘Big Data’; however, it also extends its reach to several other areas, including banking, counter-terrorism, and the private sector. Even though the company became a ‘meme stock’ last year, analysts have opined that it has excellent underlying potential.
Palantir’s Q1 2022 report disclosed a 31% revenue growth from Q1 2021, surprising analysts and beating their estimates. On the other hand, the company also experienced an adjusted net income decline, resulting in a considerable sell-off. PLTR shares are currently trading at just $7, about 83% down from their all-time high in January 2021.
Nevertheless, Palantir’s management believes it can grow its annual revenue by 30% in the following three years. Furthermore, the software company is expanding its commercial customers, generating similar revenue levels as its government clients. Overall, while the company is currently experiencing a slump, many analysts still believe in the company’s potential.
Canopy Growth Corp (NASDAQ: CGC)
Canopy Growth is a trending marijuana stock on Reddit in 2022. It is a Canada-based cannabis company based with simultaneous operations in Germany, Spain, and some countries in South America. Yahoo Finance has reported the company’s market cap at $2.02bn, making Canopy Growth the sixth-largest cannabis company globally.
Canopy Growth’s share price is presently trading at $4, falling into the ‘penny stocks’ bracket. However, a US-based marijuana company has acquired the company, meaning that it is well-positioned to enjoy Federal marijuana legalization. In addition, Canopy Growth has also enjoyed investment from Constellation Brands, enabling it to subsidize its losses.
Experts have speculated that the company’s price-to-sales ratio across the past year is just 5.20, noting that the company may be undervalued relative to its revenue. Nevertheless, the company’s fortunes still depend on marijuana legalization, which would be significant as it could leverage the US market. As such, the r/weedstocks subreddit regularly discusses the company’s stock, signifying that it may be worth monitoring.