At the time of this writing, investors are waiting for Reddit, the self-proclaimed "front page of the Internet," to make its public trading debut on March 21, 2024. A successful initial public offering (IPO) could be a sign that investors are willing to look beyond artificial intelligence (AI) and big tech for growth.
The social media company has been around for years, and many investors are familiar with it through one of its sub-Reddit's, WallStreetBets. This group of committed traders is known for identifying stocks that they believe carry a high short selling risk. However, it became a household name by birthing the meme stock movement defined by stocks such as GameStop Corp. (NYSE: GME) and AMC Entertainment Holdings Inc. (NYSE: AMC).
However, this group includes a cross section of traders and investors who discuss more than meme stocks. Even if you disagree with the group's stock picks, they have a way of influencing retail investor sentiment. In this special presentation, we're looking at seven stocks that are among the top 25 stocks trending on WallStreetBets in March 2024.
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- Nvidia
- Tesla
- Apple
- Visa
- Palantir
- Costco
- Boeing
#1 - Nvidia (NASDAQ:NVDA)
Not surprisingly, Nvidia Corporation (NASDAQ: NVDA) is one of the top stocks being discussed on WallStreetBets. When a stock is up 277% in the last 12 months, as NVDA stock is, it's going to be a target for short sellers.
Short interest in Nvidia is only about 1% of the float, which is negligible for a stock with 2.5 billion outstanding shares. However, short interest has been climbing in 2024 and has reached its highest level in at least two years.
The question on many investors' minds is how high NVDA can go? Much of that answer will depend on the broader economy. Nvidia is the leader in the needed AI chips as companies deploy more AI applications. That's not going to change, but corporate capital expenditure (capex) spending may come under closer scrutiny, particularly if the Federal Reserve chooses to stand pat on interest rates.
About NVIDIA
NVIDIA Corporation provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU or vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building and operating metaverse and 3D internet applications.
Read More - Current Price
- $102.83
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 38 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $142.10 (38.2% Upside)
#2 - Tesla (NASDAQ:TSLA)
Tesla Inc. (NASDAQ: TSLA) is one of the Magnificent 7 stocks from 2023 that has seen better days. TSLA stock is down 31.7% in 2024, and short interest is on the rise.
The overall Tesla short interest is approximately 3% of the 3. 1 billion float. But Tesla is one of the most heavily shorted stocks in the trading community. And the options chain shows that puts outnumber calls by a fairly significant margin.
Tesla shares soared in 2023 on expectations of an electric vehicle (EV) revolution. Instead, interest rates and inflation have dampened customer's appetite for EVs. Moreover, while Tesla is still the far-and-away market share leader in the United States, it's losing market share in China.
Nevertheless, Tesla has been counted out before, and with the stock near its 52-week low as of March 14, 2024, investors could have a solid buying opportunity.
About Tesla
Tesla, Inc designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage. The Automotive segment offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty after-sales vehicle, used vehicles, body shop and parts, supercharging, retail merchandise, and vehicle insurance services.
Read More - Current Price
- $210.73
- Consensus Rating
- Hold
- Ratings Breakdown
- 12 Buy Ratings, 18 Hold Ratings, 8 Sell Ratings.
- Consensus Price Target
- $204.21 (3.1% Downside)
#3 - Apple (NASDAQ:AAPL)
Apple Inc. (NASDAQ: AAPL) is the last of the Magnificent 7 stocks on this list. But it's not hard to see why. Apple has lost some of its luster in the tech sector. That's what happens when it's been a minute since the company launched a disruptive innovation. And like Tesla, Apple also has a China problem as demand for its iPhones is below forecast.
Apple is one of the most widely owned stocks by institutional investors. The Apple float is around 16.5 billion shares. Therefore, the short interest of 0.75% is not a big concern. However, short interest in AAPL stock is up more than 14% in the month ending February 29, 2024, and has been remarkably consistent over the last three years. That simply shows that the stock is a playground for buyers and sellers alike.
A rock solid balance sheet and cash position make Apple a hold for long-term investors. However, Apple is a different story for traders.
About Apple
Apple Inc designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, and HomePod.
Read More - Current Price
- $220.82
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 25 Buy Ratings, 10 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $238.62 (8.1% Upside)
#4 - Visa (NYSE:V)
Visa Inc. (NYSE: V) is also trending on WallStreetBets. The performance of the payment processor's stock has reflected the resilience of the consumer. V stock is up 30% in the last 12 months as the company continues to post year-over-year increases in revenue and earnings.
Visa short interest is only around 2% of the stock's float, which is over 1.5 billion. But it is on the rise in 2024. And that also reflects the consumer. In 2023, credit card delinquencies (payments more than 30 days late) climbed above 7%, which put it above 2019 levels. However, Moody's says that rate is likely to peak between 9% and 10% in 2024.
That's still below the delinquency rates from the 2007 financial crisis and subsequent Great Recession. But since Visa may have to set aside more for charge-offs, it’s enough to keep Visa stock in the crosshairs of short sellers.
About Visa
Visa Inc operates as a payment technology company in the United States and internationally. The company operates VisaNet, a transaction processing network that enables authorization, clearing, and settlement of payment transactions. It also offers credit, debit, and prepaid card products; tap to pay, tokenization, and click to pay services; Visa Direct, a solution that facilitates the delivery of funds to eligible cards, deposit accounts, and digital wallets; Visa B2B Connect, a multilateral business-to-business cross-border payments network; Visa Cross-Border Solution, a cross-border consumer payments solution; and Visa DPS that provides a range of value-added services, including fraud mitigation, dispute management, data analytics, campaign management, a suite of digital solutions, and contact center services.
Read More - Current Price
- $279.37
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 23 Buy Ratings, 6 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $309.54 (10.8% Upside)
#5 - Palantir (NYSE:PLTR)
If you want a fun experiment, type $PLTR in the WallStreetBets forum and watch what happens. Palantir Technologies Inc. (NYSE: PLTR) has been a polarizing stock since it went public via a direct listing in 2020.
That's not to say there haven't been many reasonable objections raised about Palantir. However, in every case, Palantir has overcome those objections. Still, until 2023, the stock was trading just above penny stock territory. But many companies seeking to build their AI capabilities find that Palantir offers an ideal solution. The company's immersive AIP bootcamps are becoming great word-of-mouth advertising.
Recent remarks by Palantir chief executive officer (CEO) Alec Karp make it clear that there's no love lost between Karp and those who would seek to short PLTR stock. However, words won't stop the shorts from trying. Only time will tell if Palantir can silence its many critics.
About Palantir Technologies
Palantir Technologies Inc builds and deploys software platforms for the intelligence community to assist in counterterrorism investigations and operations in the United States, the United Kingdom, and internationally. The company provides Palantir Gotham, a software platform which enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants, as well as facilitates the handoff between analysts and operational users, helping operators plan and execute real-world responses to threats that have been identified within the platform.
Read More - Current Price
- $30.33
- Consensus Rating
- Reduce
- Ratings Breakdown
- 4 Buy Ratings, 7 Hold Ratings, 5 Sell Ratings.
- Consensus Price Target
- $25.00 (17.6% Downside)
#6 - Costco (NASDAQ:COST)
The question that might come to mind with Costco Wholesale Corp. (NASDAQ: COST) is how many hot dogs (or gold bars) a company can sell. The warehouse club has been an unstoppable force with a loyal customer base. As evidence of that loyalty, the company reported a new record renewal rate in its most recent quarter.
The company is also overdue to raise its membership fee (based on historical norms). That doesn't mean a hike is imminent. But if the company were to raise its membership fee while keeping a retention rate of over 92%, it would please investors.
COST stock is up 52% in the past 12 months, but short interest has increased considerably in 2024, even though it's still a low 1.54% of the company's float. One item from the company's earnings report that is likely attracting short sellers is that consumers were scaling back on discretionary purchases to focus on staple items.
About Costco Wholesale
Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. The company offers branded and private-label products in a range of merchandise categories.
Read More - Current Price
- $876.68
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 19 Buy Ratings, 7 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $828.73 (5.5% Downside)
#7 - Boeing (NYSE:BA)
The Boeing Company (NYSE: BA) wraps up this list of trending WallStreetBets stocks. In the week ending March 14, 2024, there have been 399 posts about BA stock. That's a 612.5% increase.
The beleaguered aerospace company is under fire after several high-profile incidents involving its past and current fleet of jets. Unfortunately, this continues a trend that's been in place since 2019, when Boeing had to do a considerable redesign on its 737 Max jet.
BA stock is down 30% in the last 12 months and 10% in the last month alone. Short interest is relatively low at around 1% of the float. That doesn't suggest a lot of interest from short sellers...yet. But with bankruptcy rumors swirling and the stock clearly on the radar of the short interest crowd, you'll want to be very careful before taking a position in BA stock.
About Boeing
The Boeing Company, together with its subsidiaries, designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems, and services worldwide. The company operates through Commercial Airplanes; Defense, Space & Security; and Global Services segments.
Read More - Current Price
- $157.62
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 14 Buy Ratings, 7 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $211.29 (34.1% Upside)
WallStreetBets founder Jaime Rogozinski says he created the community as "a place for people to talk about high-risk trades in an unapologetic way for people to make some short term money with disposable income." As the meme stock movement showed, one of the stated missions of the group is to "stick it to the hedge funds."
For many investors, that can feel like gambling. That's one reason the group was virtually unknown until 2020.
Nevertheless, it's important to understand what stocks are popular in this disruptive group. For starters, it may explain unexpected price movement in one or more of your stocks.
Identifying WallStreetBets stocks is another way MarketBeat proves itself as a one-stop resource that adds value for investors. The Top WallStreetBest Stocks is a tool available to MarketBeat All-Access members. You can find it under the Trending Stocks category in the Research Tools section.
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