Today’s trending Reddit stocks

What stocks are trending on Reddit right now?

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Why does Reddit have any impact on the stock market?

At the start of 2021, Reddit cemented itself as a key trading indicator for many seasoned and institutional investors around the world. This was because GameStop, a US-based video game retailer, spiked over 700% during a frenzied few days at the end of January.

GameStop sky-rocketed around 8,000% over six months. The stock became a piece in a rather complicated financial power struggle puzzle between a major hedge fund, Melvin Capital, and a group of internet investors who congregated on Reddit. GameStop became the subject of what’s known as ‘short selling’, a process in which professional investors borrow shares of stock to sell them and then buy them back at a later date, allowing them to make a profit if the stock price goes down. In simple terms, short-selling is a bet that the company will fail, with infinite loss potential.

Long story short, Reddit investors found an opportunity to make some money by aggressively buying GameStop stocks, which resulted in an internet pile on, with everyone from Elon Musk to Wolf of Wall Street’s Jason Belfort wading into the debate and hype. A boom of coverage of the now infamous subreddit r/WallStreetBets made sure the frenzy continued through January.

How to find trending stocks on Reddit

We’ve compiled some of the trending Reddit stocks above to give you some inspiration, but if you’d like to take a look at Reddit yourself, here’s how you can find trending stocks on Reddit:

1. Go to investing subreddits. Some examples are r/WallStreetBets, r/Stocks, r/Investing and r/PennyStocks. If you’re looking for specific categories, like dividend stocks, you can search for other subreddits.
2. Sort the posts. You can do this with the “hot”, “new” and “top” buttons above the posts and choose a time period to sort by.
3. Read the discussions. You can find out what people are talking about and read their research to find out why the stock is trending.
4. Do your own research. Before you dive in and invest, look into the stock yourself and weigh up the risks involved.

Does Reddit matter to ordinary investors?

The GameStop scenario tells us that, yes, it does. For example during the frenzy, brokerages were forced to suspend trading of certain stocks, and even caused outages of entire apps. This was due to the intense strain put on the infrastructure of brokerages and trading apps, many of which received unprecedented volumes of trades and new sign ups.

The GameStop affair has also caused a lasting shift in the analysis conducted by institutions. The internet has empowered retail investors, the combined force of which now matched institutions when it comes to buying power and volume. This changed the dynamics of investing somewhat, you’d think in favour of the little guy – though it remains to be seen if retail investor success has eaten into the profits of the big guns on Wall Street.

Reddit stocks list

Reddit has provided some of the most dramatic investing stories since the start of 2020, the most famous of those being the GameStop frenzy. Some of the most commonly talked about stocks include GameStop, AMC Entertainment, Tesla and BlackBerry.

Is Reddit a reliable place to research stocks?

The internet has been used for talking about stocks and investments since its inception. Reddit is just the latest evolution of that. There are some advantages to researching stocks on Reddit, as well as some things you should watch out for.

Like any form of research, Reddit offers some things you can’t get elsewhere, but should probably just form a part of your overall research process – as opposed to being the start and end of your digging.

Written by

Charlie Barton

Publisher

Charlie Barton was a publisher at Finder. He specialised in banking and investments products, including banking apps, current accounts, share-dealing platforms and stocks and shares ISAs. Charlie has a first-class degree from the London School of Economics, and in his spare time enjoys long walks on the beach. See full bio