Reddit has become a hub for social-media driven traders and investors that have proven their ability to move the markets, injecting huge volatility into stocks like GameStop and AMC. But what stocks are grabbing attention on Reddit today?
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Top Reddit stocks to watch
Below is a list of the top 10 most mentioned US stocks on the WallStreetBets thread on Reddit over the last 24 hours on January 17, 2022, according to data from Quiver Quantitative. Exchange-Traded Funds (ETFs) have been excluded.
- Tesla
- GameStop
- Lucid Group
- Block
- AMC Entertainment
- Amazon
- Vinco Ventures
- ContextLogic
- Grupo Televisa
- Alibaba
US markets are closed for Martin Luther King Jr Day and will reopen tomorrow. Let’s have a catch up on what happened to the most-discussed stocks last week and on news that broke over the weekend.
Tesla remained the most-discussed stock over the weekend. The stock rose gained over 5% last week but is still down over 12% since the start of the year after a rocky start to 2022 for electric vehicle stocks on concerns that competition will intensify this year. The US National Highway Traffic Safety Administration said on Friday that it is in talks with Tesla about heating issues in some of the carmaker’s models and evaluating ‘potential safety concerns’. Reports said the issues relate to complaints made about heat pumps failing in in extremely cold conditions. It is thought the problems have persisted even after Tesla replaced faulty sensors within the heat pumps in some Model 3 and Model Y cars in early 2021. Regulators in Canada have also opened an investigation into the heat pumps and the cooling system in the models after receiving 16 similar complaints. Meanwhile, CEO Elon Musk said Tesla will start rolling-out its Full Self-Driving beta programme in Canada ‘cautiously’ in the next two to four weeks.
Smaller electric vehicle stock Lucid Group grabbed attention last week on rumours from TorqueNews.com that Apple could turn to Lucid to help build its top-secret electric vehicle, although the report was not verified and filled with caveats.
A report from the Financial Times this morning said hedge funds that experienced heavy losses during the meme stock trading frenzy last year are pushing back against the SEC’s plans to reform rules on short selling practices, including new reporting requirements. The head of regulatory affairs at the Managed Funds Association, Jennifer Han, warned the reform could create more volatility ‘leading to situations similar to the GameStop market event’. Meme stock favourites GameStop and AMC have both been trending lower since November. GameStop shares closed at their lowest level since March 2021 on Friday at $116.63, while AMC shares closed at their lowest level since May 2021.
Shares in Block, the fintech firm formerly named Square and run by former Twitter boss Jack Dorsey, ended last week at their lowest level since early August. The stock has been in freefall since late October and that has only accelerated since it announced its rebrand at the start of December. S&P Dow Jones Indices confirmed on Friday that Block will replace Afterpay om the S&P/ASX 200 following the $29 billion all-stock merger between the two, which became unconditional last week after Spanish regulators gave the pair the green light.
Reuters reported this morning that Amazon has made a U-turn on its plans to stop accepting UK-issued Visa credit cards on its platform later this month and is now working with the payments giants on a solution to the problem, which boils down to payment fees. The payment option was set to be dropped this Wednesday.
Alibaba has rebounded from the lows hit late last year but still remains over 40% below where it stood at the start of 2021 as fears over the ongoing regulatory crackdown in China, and the threat more Chinese firms could follow ride-hailing service DiDi and be forced to delist from the US, continues to weigh over the company’s prospects. Brokers have steadily cut their target price over the last six months but still remain extremely bullish on the stock and believe there is over 54% potential upside from the current share price.
ContextLogic shares ended last week at a fresh all-time low of just $2.53. The company went public at $24 a share in late 2020 but has seen its share price collapse over the last seven months, with the latest catalyst being the removal of its online shopping platform Wish in France over safety concerns about the products sold on the site.
