While it’s easy to associate Reddit with riskier financial plays, many stocks boast massive potential for long-term gains. These companies have plenty to offer to investors willing to look past their sensational headlines and dig deeper into their fundamentals. Investing in some of the platform’s most popular stocks can still be a rewarding experience if you remember to focus on the numbers rather than pure speculation. As you consider the best Reddit stocks, you’ll find companies with some of the most robust fundamentals.
For investors looking to capitalize on the potential of a bull market, undervalued Reddit stocks can be a great opportunity. They present incredible opportunities for those seeking big returns without taking too much risk. So if you’re looking for ways to get in on the ground floor before prices start soaring, consider these Reddit stocks.
Best Reddit Stocks: Advanced Micro Devices (AMD)
Chip giant Advanced Micro Devices (NASDAQ:AMD) has seen its stock price crater over the past 12 months. The stock is down 50% from its highs, with investors having legitimate concerns over its competitive positioning. However, its robust third-quarter report is a testament to the quality of its business and its resilience in an unconducive environment. It delivered a rapid 29% revenue growth, primarily driven by a blow-out performance in the data center segment.
AMD’s server chips delivered the 10th straight quarter of record sales, with its products deployed across three of the top cloud infrastructure providers. As we advance, it is poised to benefit secular trends in cloud computing, gaming and embedded devices. With the constant development of new products to meet growing customer demands, AMD looks set to continue its incredible performance across its key segments for years to come.
General Motors (GM)
General Motors (NYSE:GM) is an iconic automaker and one of the best Reddit stocks to invest in at this time. Despite inflationary pressures dampening consumer confidence, the demand for GM’s products remains stronger than ever. It wrapped up its third quarter, delivering solid beats across both lines with more than 56% growth in sales from the prior-year quarter.
Moreover, the firm’s lofty ambitions could potentially make it a major force in the electric vehicle (EV) market. It has signed multiple agreements with suppliers and committed to a large expansion of battery production for EVs. The company’s estimated capacity for its electric vehicle business could reach more than 2 million vehicles each year. It is expected to have a significant presence globally in 70% of the industry’s segments. Moreover, it expects its EV business to become profitable as early as 2025.
Best Reddit Stocks: Home Depot (HD)
Home Depot (NYSE:HD) is one of the largest retail chains worldwide, specializing in the home construction and repair markets. It has established itself as an incredibly successful enterprise with thousands of stores across the North American region. Despite concerns about mortgage rates and the economic climate, the firm recently wrapped up another solid quarter.
Moreover, I expect the firm to continue investing in its Pro capabilities, which could be a long-term growth driver for its business. It has invested in various initiatives such as fulfillment centers, larger delivery operations and flatbed distribution centers to cater to its growing Pro customer base. Though the segment forms a relatively small portion of its customer base, it contributes immensely to its overall sales.
Alibaba (BABA)
Given the tumultuous economic climate over the past year, Alibaba (NYSE:BABA) has faced immense pressure in its core e-commerce business. However, despite this short-term slump, it’s uniquely positioned to become a leader in space. The company’s core business-to-business model provides access to high-spending customers and ensures sustainable sales. In addition, Alibaba’s brand equity, technological capabilities and dominant positioning in Chinese e-commerce give it a clear edge over its peers. Ultimately, with its loyal customer base combined with cutting-edge technologies and innovative product offerings, Alibaba is well-positioned to fuel growth in the e-commerce industry in the long run.
Alibaba Cloud has been the brightest spot for the firm in recent quarters. Despite market headwinds, it grew 4% from the prior-year period. Alibaba has further invested $1 billion in upgrading its global partner ecosystem to solidify its cloud services industry position. This move enables the Chinese cloud provider to close the gap between itself and its major competitors. Moreover, it is expected to be at the forefront of advancing China’s digitization efforts.
Best Reddit Stocks: Disney (DIS)
Recently, Disney (NYSE:DIS) has drawn a great deal of attention from investors due to its streaming service, Disney Plus. Since its launch, it has been a massive hit and now holds over 164 million subscribers, second only to Netflix. Some industry experts believe there’s a good chance Disney Plus will overtake Netflix in terms of subscriber numbers in the near future. However, what sets Disney apart from its competition is that it has other businesses, such as its Parks and Cruise Line segments, to offset any losses from its streaming segment.
This gives the media giant some additional cushioning from any bumps or changes. After an incredibly long lockdown period, Disney reopened its global parks, with tourists quickly returning to them. Hence, it was no surprise its domestic hotel bookings achieved an amazing 90% occupancy rate in the third quarter. Undoubtedly, it seems Disney’s diversification strategy is paying off and the company looks set to become an even bigger success in days to come.
Apple (AAPL)
There is no denying Apple (NASDAQ:AAPL) is one of the world’s most powerful tech companies, and its formidable ecosystem of products and services remains unmatched by its competitors. Its iconic iPhone, first introduced more than a decade ago, has become one of the most popular gadgets ever made, and it continues to improve on a year-over-year basis. Despite the difficult market conditions brought on by the pandemic, Apple has come out ahead, as evidenced by its operating performance in its latest quarter.
Moreover, CEO Tim Cook is incredibly optimistic about the holiday season based on the “most powerful lineup ever” for the company. The iPhone 14, in particular, is likely to drive significant consumer interest. Analyst Daniel Ives from Wedbush estimates approximately 240 million iPhone users have yet to upgrade their device, providing massive momentum for Apple.
Best Reddit Stocks: Gartner (IT)
Gartner (NYSE:IT) is one of the juggernauts in market research and insights in the technology sector. Its expertise includes cloud computing, enterprise applications and other areas of tech that are both innovative and profitable. As the digital transformation accelerates, Gartner stands to benefit from firms adopting its robust services. Moreover, through its subscription-based model, Gartner does an excellent job of growing its margins and expanding its user base at a healthy pace each quarter. Moreover, its management estimates a total addressable market of nearly $200 billion.
The total addressable market for Gartner outside of IT services is vast. It shows great promise, allowing it to capitalize on various technological developments that have opened up extraordinary possibilities. Given its late results’ strength, Gartner has shown it provides an invaluable service to the tech sector and mainstream industries, making it a clear leader in market research and analytics.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.