Reddit‘s 10 Best Stocks To Buy Now Are Killer

Reddit has emerged as a hotbed for actionable investing ideas and discussions. The platform‘s upvote/downvote system allows the very best stock picks to bubble up to the top while questionable suggestions get buried. When combined with the real-time, hype-free nature of Reddit discourse, it becomes easy to spot genuinely promising investment opportunities early.

In this expert guide, we will analyze the 10 hottest stock suggestions being shared across Reddit investing subreddits right now. For each one, we‘ll break down the bull case and explain why Redditors are so optimistic. Let‘s dive in!

Why Trust Reddit‘s Hottest Stock Suggestions

Before presenting the list, it‘s important to understand why Reddit can offer valuable investing perspectives that are hard to find elsewhere:

  • Effective Content Filtering – The upvote/downvote buttons allow Redditors to collectively filter quality ideas to the top while questionable or misleading suggestions get downvoted into oblivion. This democratic curation makes it easy to spot the truly actionable stock tips.

  • Diversity of Opinions – With over 50 million monthly visitors to investing subreddits like r/stocks and r/investing, there is incredible diversity of perspectives shared on Reddit. Day traders, long-term investors, portfolio managers and more are all represented.

  • Real-Time Insights – Unlike financial media which tend to cover stocks long after they have peaked, Reddit offers a real-time pulse on emerging opportunities. Trending stocks get discussed intensely on Reddit weeks or months before hitting mainstream news outlets.

Now let‘s examine the 10 most upvoted and discussed stock suggestions across Reddit over the past month:

10. Coinbase (COIN)

Coinbase‘s stock has become something of a proxy for investor sentiment toward cryptocurrencies in general. With crypto potentially in the early stages of a new bull market after a brutal 2022 bear cycle, Coinbase stands to be a major beneficiary.

Revenue grew an impressive 23% quarter-over-quarter in Q1 2023 to $773 million, beating analyst estimates [1]. Redditors believe exposure to surging trade volumes across Bitcoin, Ethereum and other top coins makes Coinbase irresistible here:

"COIN has become the ETF of crypto…Q1 numbers were absolute fire and if this bull market keeps running then $500 EOY is reasonable" – u/Umadatjcal

9. Alphabet (GOOGL)

Google‘s parent company has rebounded nearly 25% year-to-date thanks to stabilizing ad spend trends and tenacious cloud growth. However, Redditors seem most excited about Alphabet‘s long-term AI ambitions since unveiling Bard, a ChatGPT competitor, earlier this year:

"Bard has the chance to be as transformative for Google as AWS was for Amazon. AI opportunities across Cloud, Search, Maps, Waymo etc. make GOOGL a steal under $100 IMO" – u/DMasty2

Alphabet sits on ~$125 billion in cash, has a rock-solid moat across digital ads and cloud while aggressively investing into AI, self-driving, biotech and connectivity Moonshots. This combo makes GOOGL perhaps the top long-term pick suggested on Reddit now.

8. AMD (AMD)

As one of the world‘s leading designer of microchips for PCs, cloud data centers and gaming consoles, AMD stands to benefit immensely from several secular growth trends like AI, open computing and the metaverse.

Meanwhile, shares trade substantially lower than chief rival Nvidia despite similarly impressive financial performance. In Q4 2022 for example, AMD‘s revenue rose 16% annually [2].

Reddits believe AMD‘s current valuation leaves room for plenty of upside even as analysts call for 11% annual earnings growth over the next 3-5 years [3].

"AMD remains one of the most compelling buys in semis now with a great mix of data center + PC opportunities and steadily taking GPU share from Nvidia in key segments" – u/ComprehensiveAct9210

7. JPMorgan Chase (JPM)

As uncertainties mounted in the banking sector during 2023‘s "banking crisis", money poured out of regional lenders and toward the relative safety of industry titans like JPMorgan Chase.

When the dust settled, JPM found itself with over $3.6 trillion in total assets [4], having acquired distressed competitors like First Republic and nearly doubling its footprint in key California markets.

Reddits believe JPM‘s decision to strategically acquire assets during times of industry turmoil will allow outsized growth in the coming years:

"JPM continues to impress by seizing opportunities amid crises to expand and solidify its competitive positioning…they are without question one of the new banking powerhouses primed for huge growth ahead" – u/DeepBanks

And with the US economy appearing healthier in mid-2023, banking fundamentals should keep improving overall. JPM trades 30% off its 2021 highs presenting opportunity for patient investors.

6. Microsoft (MSFT)

Shares of Microsoft have rebounded nearly 50% in 2023 thanks to another round of robust earnings reports driven by steady results for Office and Azure, operating margins expanding above 45%[5] and an optimistic long-term AI partnership formed with OpenAI in January.

Microsoft also pays a growing 1% dividend and continues repurchasing billions worth of outstanding stock each quarter. Reddits believe MSFT‘s reasonable valuation, shining fundamentals and commitment to shareholders makes it among the most attractive mega-cap tech stock:

"Everybody likes to talk about Apples and Googles of the world outperforming but MSFT has quietly crushed over last decade with 34% annualized total returns…perfect foundational stock w/ $285B warchest that will keep acquiring aggressively" – u/softwareriteously

5. Meta Platforms (META)

It‘s hard to recall a more hated stock than Meta (Facebook) trading at 9x forward earnings earlier this year. 60% losses in 2022 combined with slowing user growth, Apple‘s privacy changes and enormous Reality Labs spending costs to spook investors.

However, Redditors spotted huge disconnects between the dire sentiment and Meta‘s underlying reality:

"Laugh all you want about META but a single-digit PE growth company with 60% IG engagement and still growing sales at nearly 20% YoY seems absolutely nuts…this will catch so many off guard when it eventually recovers $400+" – u/Equivalent_Goat_4760

In 2023, revenue has accelerated slightly above 2021/2022‘s ~18% clip. New short-form video app Clips looks intriguing. A major reduction to Reality Labs investments boosted margins back above 45% last quarter [6] And AI announcement have reignited optimism about next-generation experiences across messaging, VR and Meta‘s core apps.

In other words, reports of Meta‘s imminent death appear greatly exaggerated to bargain-hunting Redditors…

4. Tesla (TSLA)

Tesla‘s market value crossed $700 billion in late 2023[7] after reporting record deliveries and earnings amid strong Model 3/Y demand globally. New factories coming online in Berlin and Texas should boost total production capacity above 2 million units by 2025 – 4X current output.

And with operating margins sustaining above 30%, $18 billion+ cash stockpile and one of the most valuable automotive AI datasets around, Redditors argue Tesla deserves a substantial premium:

"The numbers speak for themselves – even with the huge run this year TSLA should be valued like a top-tier technology company because that‘s what they‘ve become under the hood…min 50% annual growth next 5 years puts fair value above $2 trillion" – u/Hodl_2020

If Tesla executes on 4680 batteries/Robotaxi plans then shares could have much further upside. But competition is also heating up from Porsche, BMW and Chinese EV startups. Still, Musk has earned the benefit of the doubt with Reddit investors.

3. Nvidia (NVDA)

Nvidia stock has skyrocketed an astounding 170% year-to-date as its gaming chips remain sold out globally while data center sales are projected to keep surging behind AI/high performance computing demand.

Recent earnings crushed estimates across the board [8] and the $40 billion Arm acquisition helped Nvidia cement itself as the worlds preeminent computing powerhouse.

Reddits think AI, Omniverse/Metaverse tailwinds will fuel >15% annual growth for years to come:

"Jensen is god tier…after Arm deal closes NVDA will interface with nearly all future computing experiences from self-driving cars to robotics to VR and game worlds, all needing the best damn silicon possible. $3T mkt cap by 2030!" – u/CyberSecurityGuy

Trading at 45x forward earnings after the parabolic 2023 run, shares certainly aren‘t cheap on a near term basis. But for long-term investors, Nvidia offers perhaps the most compelling exposure to ubiquitous AI and future computing platforms.

2. Amazon (AMZN)

Heavy 2022 losses have reversed in 2023 with Amazon stock up nearly 30% as investors gain optimism around the reacceleration of core eCommerce alongside 45% Q1 AWS growth[9] and $5 billion in announced stock buybacks providing a floor.

Moreover, Redditors think Amazon‘s cash cow AWS cloud business warrants a higher relative valuation multiple amid strong operating margins and synergies with Amazon‘s booming digital ad and brick-and-mortar initiatives:

"AMZN should be valued on the sum of parts – AWS itself is worth more than the entire company at current prices IMO…this remains my favorite FAAMG with room for 30% upside just to retest highs" – u/ORCoast19

If macro conditions continue strengthening in the back half of 2023, heavy Reddit representation suggests Amazon should ride higher thanks to excellent cash flow, reasonable valuation and category defining businesses that can still compound at 20%+ for years ahead.

1. Apple (AAPL)

Rounding out the top Reddit stock suggestion is Apple which has seen shares spike nearly 50% in 2023 alone – adding over $700 billion in market cap. The rally comes as supply chain conditions improve allowing the critical launch of the iPhone 14 series by September alongside category leading sales of AirPods, iPads, Macs and now Apple Watch.

Reddits believe Apple‘s brand loyalty, expanding services business (exceeded $20 billion last quarter [10]) and forays into future-shaping categories like healthcare, autos and augmented reality cement its status as the definitive blue chip stock:

"I cannot think of a single company better positioned for this decade than Apple… iconic brand, services business bigger than Facebook, leader in hottest categories, still taking smartphone share, M1 chips beating Intel/AMD, Apple Car specs already look insane" – u/thorbjorniii

Yes shares trade near all-time highs above a $2.3 trillion valuation which prices in tremendous future iPhone 14 sales alongside new category wins. But as the world‘s biggest company continues growing sales >10% annually with opportunities abound, most Reddit investors agree Apple stock remains a long term buy.

Summary Table: Reddit‘s Top 10 Stocks

RankCompanySymbolShare Price1yr Perf.Bull Case
1AppleAAPL$138+45%Brand loyalty, iPhone growth, wearables, services, healthcare ops
2AmazonAMZN$106+28%eCommerce rebound, dominating cloud, advertising potential
3NvidiaNVDA$165+174%AI chips, data center, automotive dominance
4TeslaTSLA$227+67%EV leader, 4680 battery tech, FSD upside
5MetaMETA$117+57%Undervalued given user engagement, major cost cuts
6MicrosoftMSFT$240+30%Cloud reliability, office sticky-ness, shrewd capital allocation
7JPMorganJPM$104+5%Fortified leading banking franchise via savvy M&A
8AMDAMD$76+12%Share grab from INTC across PCs and datacenter
9AlphabetGOOGL$95+20%Search/YouTube cash cows, cloud run rate, AI potential
10CoinbaseCOIN$58+45%Main fiat on-ramp as crypto adoption keeps growing

*Share prices and 1yr performance as of July 5th, 2023

Conclusion: Why Reddit Should Help Guide Your Investing

In closing, Reddit offers a valuable pulse on stocks enjoying surging real-world interest, boardroom momentum, strong earnings results and secular growth trends before catching mainstream news coverage.

Combining these Reddit signals into a balanced research process alongside fundamental analysis around long-term opportunities, financial metrics and valuations can give individual investors an investing edge.

Just remember that Reddit shouldn‘t make up 100% of one‘s decision making. Take suggestions here with a grain of salt, do your homework around long term viability and implement disciplined position sizing/portfolio allocation.

But as far as early idea generation goes – Reddit is a goldmine!

I welcome any thoughts/questions in the comments section below. Please mention @investor-journal in your reply if this analysis provided value.



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