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Best Reddit stocks to buy in 2021
Use this page to find the best stocks that are trending on Reddit at the moment. Our expert analysts have combed through the subreddits to find the companies with the most potential to succeed, and have come up with a list that has something on it for every investor.
What are the top Reddit stocks to buy?
You can find a list of our expert choices in the table below. Click the links on each stock symbol to find the latest price information, or keep reading to find out more about why these companies have been chosen.
|#||Stock symbol||Company name|
1. Apple (NASDAQ: AAPL)
Apple is a household name and one of the best stocks to buy in its own right. Set up by Steve Jobs in the 1970s, the company is famous for developing revolutionary technology in the form of the Mac computer and then the iPhone in particular.
It’s attracted attention on Reddit on the back of the release of the iPhone 13 and it is comfortably the most established and quality company on this list. It’s already the most valuable company in the world but it’s still growing its revenue, which was up by more than 30% in the last quarter.
If you just want to find a stock that’s popular on Reddit and has the least risk attached, then Apple is it. It’s a blue-chip stock with a valuable brand that’s constantly innovating. It’s the safest way to join the retail investors club.
2. SoFi Technologies (NASDAQ: SOFI)
SoFi is an online personal finance company. It helps students, in particular, manage their debt and offers a variety of online banking services like loans and credit cards. The company is backed by Chamath Palihapitiya, who is a little like the Pied Piper of meme stocks. He’s also been involved with Clover Health, which is popular on Reddit as well.
That’s one of the reasons the stock is favoured by Reddit investors even despite some shaky recent results. The other is that people are willing to overlook short term losses because SoFi is growing its membership at a rapid rate; it doubled in the last quarter alone.
SoFi’s whole business model offers an alternative to traditional high street banks. That means it has a variety of different revenue streams and opportunities to up and cross-sell its products to its members. All of which put it in a great spot to grow in the medium term.
3. BlackBerry (NYSE: BB)
BlackBerry is best known for being one of the first companies into the smartphone game. The modern BlackBerry, however, is a long way from that. Nowadays its focus is on cybersecurity and the Internet of Things.
Stocks that are favoured by Reddit investors often have an emotional attachment to the people involved, and BlackBerry certainly fits that bill. Alongside that, there are legitimate business reasons to be bullish on its future because its new products are such an integral part of the modern world.
BlackBerry products and software use artificial intelligence and machine learning to protect against hacks, and are already in use by governments and in things like driverless cars. Like another similar company, Nokia, it’s suffered through a period in the doldrums but has transformed so that it’s well set to make money in the long term.
4. GameStop (NYSE: GME)
GameStop became the first true ‘Reddit stock’ in 2021 when it became the cause celebre of investors on social media. Before that, it was just a normal high street video game retailer struggling to make ends meet.
It retains a special place on the message board, whose continued involvement means that the stock has stuck at a price point way above anything it had ever seen before. It’s still more than 800% up across 2021 as a whole.
Like many companies that are hyped up on Reddit, there was an initial business reason for its popularity. It was taken over by an activist investor at the end of 2020, who wanted GameStop to focus more on online sales rather than the physical stores. The increased attention it has had this year has only accelerated that process, and the company is in a much better place now than it was 12 months ago.
5. SmileDirectClub (NASDAQ: SDC)
SmileDirectClub is a dentistry company with a twist. It uses technology to design its products and most of the process takes place online, rather than you having to actually visit a dentist. You can scan your teeth at home and then order some 3D-printed braces that are specific to you.
SmileDirectClub is a classic Reddit stock because there are a lot of institutional investors who don’t like the company. That means there’s lots of people ‘short’ the stock, so it might be set up for a short squeeze. This is the same pattern that set the prices of GameStop and AMC surging at the start of 2021.
There might not be the same long term upside from SDC as the others on this list. There are legitimate questions about whether its cheap aligners business model can work. However, there is the potential for a short squeeze and the stock is normally quite volatile, which offers up lots of opportunity for traders to benefit from.
Where to buy the best Reddit shares
To get any of these shares you need to sign up with an online stock broker. These are platforms that you have to use to buy and hold the shares you want. Any of the options below is an excellent place for a beginner to start, and you can create an account in a few minutes by clicking the links in the table.
What is a Reddit stock?
A stock in a company that has become popular on the social message board, Reddit. They can generate interest for all sorts of different reasons; as a result of legitimate amateur analysis, simply as jokes, or in a deliberate attempt to try to attack hedge funds that are ‘short’ a stock.
Are Reddit shares a good investment?
The answer can be very different depending on which company you choose. If you put some money in GameStop when it first became popular on Reddit, you were likely to make a substantial profit. But you can also lose money quickly on stocks that fall from favour in a few days.
The theme that runs across every company on this list is volatility. Sudden bursts of interest that lead to a lot of buying and selling makes the price of each stock bounce around. It can be risky to invest in that sort of environment, so you need to be prepared for the value of your investment to change a lot over the course of a day or two.
The best thing to do is to be careful and only put in a small amount that you can afford to lose. Not every stock is going to go ‘to the moon’, so protect yourself in case you pick wrong. Finally, make sure to keep track of the companies you have money in, because the nature of Reddit stocks is that things can change rapidly.
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