RKT, GameStop, AMC Short Squeezes. What Other Stocks Are the Reddit WallStreetBets Traders Targeting?
Shares of Rocket Companies ($RKT) more than doubled on Tuesday’s session from $22 to nearly $50 by the close of after hours trading.
GameStop Corp ($GME), and AMC Entertainment Holdings ($AMC) caught another wave of buyers in after hours trading on Wednesday showing signs that the short squeeze may still have legs.
After a 3000% gain in January, GameStop retraced from $500/share to $40/share in February. It has since shot back up trading from $50 to $200 on February 24th alone and currently filling out a bull flag pattern.
AMC showed a similar chart pattern, though its gains were only 1360% from bottom to top of January.
Many attribute these astounding returns to the popular Reddit group, WallStreetBets. A common question is, “How can I get on the next wave?” As a card carrying member and daily reader of the subreddit since late 2018, I am here to share with you their top stock picks for 2021.
Palantir Technologies ($PLTR):
This is the true darling of the WSB crowd. A “buy and hold forever” type stock the likes of $TSLA and $AAPL. Wouldn’t you have liked to get into those companies on the ground floor? Well, this is the next opportunity according to the “degenerates.” The market had been anticipating some selling to take place after the share lockup expired allowing pre IPO holders a chance to take profits. As it is currently testing support, many WSB members are YOLOing their life savings into calls and shares in hopes of blasting all time highs.
ARK Innovation ETF ($ARKK):
WSB has a particular fondness for female leaders and Cathie Wood is the hottest name of 2021. With top holdings of $TSLA, $ROKU, $SQ, $SPOT, $SHOP, and $PYPL to name a few, there’s no question why this ETF is a fun play. Several members will check in on the daily updates to see when Cathie is buying the dip on big tech names.
Advanced Micro Devices ($AMD):
The second fiddle semiconductor company behind $NVDA has long been a growth driver for WSB users. At this point the sentiment seems almost that of reminiscent love rather than a frothy demand. The addition of “Su Bae” (aka Lisa Su) in 2019 has many still believing in future growth.
BlackBerry ($BB):
Many WSBers were upset that $BB got caught up in the short squeeze mania a few weeks ago. They say this is the stock that has the best long term prospects of the group of meme stocks that caught the attention of the retail trading world. The primary thesis is that the AI technology which should prove particularly useful in the EV market will bring massive returns in the coming years. My personal opinion is you have plenty of time to get in on this play.
iShares Global Clean Energy ETF ($ICLN):
This play may be under the radar as far as mention count currently shows. A common sentiment is that the Biden administration will move the US into clean energy. The stock saw great growth as the world realized Biden would win the presidency, but has since slowed. Buying support should kick in between $23 and $20 if the bull run is to continue.
