As we usher in a new year, retail investors are once again on the prowl for the next meme stock sensation. The term “meme stock” was popularized by the infamous GameStop (NYSE:GME) short squeeze of 2021, and since then, the r/WallStreetBets crowd has been on a relentless search for a similar company to catapult to similar heights.
Other Reddit favorites like AMC Entertainment (NYSE:AMC) and Bed Bath & Beyond have experienced brief surges, setting social media alight, only to quickly fizzle out and return to their rightful places.
Despite the fervor of retail traders, it’s undeniable that many popular meme stocks end up disappointing the investors who champion them. Brian Ford, Truist’s head of financial wellness, suggests that meme stock investing should be classified as speculating, which he defines as “simply betting money on a highly unpredictable economic venture.”
However, it’s not all doom and gloom. Some stable companies have managed to gain popularity on the Reddit platform. Tech giants such as Tesla (NASDAQ:TSLA) and Nvidia (NASDAQ:NVDA) often rank among the most popular stocks on the platform, despite their uncertain futures due to high valuations. Meanwhile, other Reddit stocks have been quietly gaining traction and could potentially be among the year’s biggest winners.
The artificial intelligence (AI) boom shows no signs of slowing down in 2024. While some experts, such as InvestorPlace senior investment analyst Luke Lango, are less bullish on Nvidia, this opens the door for other companies to experience significant growth. Advanced Micro Devices (NASDAQ:AMD) is one such company that should be on every investor’s radar. This Nvidia competitor has been on the rise since announcing that several tech sector giants have agreed to purchase its Instinct MI300X chip. When Silicon Valley chooses you over Nvidia, it’s hard for Wall Street not to take notice.
According to InvestorPlace contributor Chris MacDonald, there are more catalysts on the horizon for AMD in 2024, including new chips that could further erode Nvidia’s market share. Retail investors seem to have caught on that AMD could be the next Nvidia. It recently surpassed its chief rival on ApeWisdom’s list of most discussed names on r/WallStreetBets, a clear indication that not all popular Reddit stocks are teetering on the brink of bankruptcy.
The cryptocurrency rally that propelled Bitcoin (BTC-USD) and its peers to new heights in late 2023 shows no signs of abating, which means that crypto stocks are also on the rise. Leading the charge is Riot Platforms (NASDAQ:RIOT), a company that describes itself as “building the world’s leading Bitcoin-driven infrastructure platform.”
In layman’s terms, it’s a leading Bitcoin miner that offers investors valuable exposure to the booming market without the need to actually purchase any crypto. Despite a significant surge in late 2023, RIOT stock is currently on a dip, presenting a potentially attractive entry point for investors.
As reported by Navellier, Riot currently holds over 7,350 Bitcoins and has been reaping substantial profits from the crypto’s recent surge. In November 2023 alone, it produced 552 Bitcoins, up from 458 the previous month. As long as the crypto rally continues, Riot is well-positioned to ride the wave to the top. It has also optimized AI and machine learning through its RiotX algorithm, making it a double threat as interest in both crypto and AI continues to surge.
Occasionally, a company gains traction on r/WallStreetBets that doesn’t fit the typical meme stock mold. Rivian (NASDAQ:RIVN), an electric truck maker with significant growth potential, is one such company. It has been steadily rising in popularity and is a favorite among Wall Street analysts.
Since the start of the year, it has received “buy” ratings from UBS, Truist, and Barclays. It currently holds a “moderate buy consensus” on TipRanks, with 13 out of 21 analysts rating it as a buy. This is a far cry from typical Reddit stocks like GameStop and AMC, which are rated as “moderate sells.”
Despite this, Rivian has been gaining popularity on r/WallStreetBets, with a current sentiment rating of 63% positive. This could be due to savvy investors recognizing that the company has better sales growth than Tesla and stands to benefit from the U.S. government’s pending tariffs on Chinese EVs. RIVN stock is currently on a dip after the company missed fourth-quarter delivery estimates, but for investors, this could be an opportunity to scoop up more shares before they rise again.
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