7 Best Reddit Stocks to Buy Now

The WallStreetBets forum on Reddit became the talk of the town when it helped take GameStop stock to the moon in January 2021. It ushered in the era of meme stocks, i.e., stocks that offer little long-term value but have gathered plenty of momentum on social media. Multiple beaten-down companies became among the best Reddit stocks, offering massive gains for retail investors.

Redditors have a bad reputation for promoting stocks purely on social media mentions rather than their core fundamentals. However, as you read through, you’ll find virtually every stock on the list has relatively strong fundamentals and an encouraging outlook ahead.

Retail traders have gotten incredibly savvy over the past few years, identifying quality names in the stock market with plans to trade some and hold onto others for the long haul.

Now, let’s look at the best Reddit stocks right now.

Micron Technology (MU)

Semiconductor giant Micron Technology (NASDAQ:MU) specializes in producing memory and storage chips used across multiple industries.

With companies moving their operations online, storage and processing have become an integral part of their strategies. Micron’s storage (NAND) chips and its robust solid-state drive technology make data centers more efficient and reliable.

The company has consistently generated strong top- and bottom-line numbers over the past several years, and growth returned with a vengeance — almost 30% revenue growth and 118% net income growth — in 2021 after a couple slower years.

Moreover, its growth drivers are coming from emerging technologies, such as self-driving cars and 5G. These could potentially guarantee double-digit growth for the foreseeable future. The semiconductor space has been cyclical over the years, but with multiple technologies requiring advanced processing power, demand could become more sustained.

AMC Entertainment (AMC)

Theater-chain operator AMC Entertainment (NYSE:AMC) became one of the best Reddit stocks last year, propelling its price to pre-pandemic levels. However, AMC stock has shed as much as 70% of its value on a year-over-year basis amidst a myriad of challenges. Nevertheless, with a strong movie slate, its revenues are climbing while cutting losses at an aggressive pace.

Multiple blockbusters have been released over the past eight months and have performed well at ticket windows. Consequently, AMC’s first-quarter revenues shot up to $785.7 million, a more than five times increase year over year. Moreover, its EBITDA jumped to a negative $61.7 million , much better than the negative $294.7 million a year ago. Additionally, its built a sizeable liquidity balance of over $1.35 billion.

With multiple big-ticket films on the horizon, including a follow-up to Avatar, I expect more encouraging results in the future. Besides, its short percentage of float is at roughly 19.7%, which suggests that another short squeeze could be on the cards.

Meta Platforms (META)

Meta Platforms (NASDAQ:META) stock has seen its value plummet amidst a secular bear market and underwhelming news from the company. Hence, its share price has been cut by over 50% from its 52-week high and has bottomed out, according to most experts. Nevertheless, its underlying business remains as strong as ever, and its future has never been brighter.

Meta’s family of applications, including Facebook, Instagram, WhatsApp, and others, has proven to be a profitable group over the years. The group has consistently delivered over a 40% profit margin if we cut out the losses from Reality Labs. A lot has to do with the platform’s growing user base, which has increased by over 45% from the second quarter of 2018 to the first quarter of this year.

Furthermore, Meta’s innovative offerings have provided significantly higher returns on marketing than other mediums. For instance, its short-form videos, introduced a couple of years ago, already make up over 20% of the time users spend on Instagram.

Add to that the multi-billion-dollar Metaverse opportunity, and you’re looking at a growth juggernaut that won’t be stopping anytime soon.

Amazon (AMZN)

Tech giant Amazon (NASDAQ:AMZN) has been in the news of late due to its recently completed stock split. It has made the stock more affordable to individual investors. However, AMZN stock has had it rough amidst multiple macroeconomic headwinds.

Amazon has established itself as one of the leaders in virtually every one of its market segments. It’s the undisputed king of ecommerce and cloud computing while occupying a dominant position in other verticals, including video streaming, music streaming and more. Amazon Web Services (AWS) alone is the undisputed leader in the cloud computing space, and its market share is more than two of its largest competitors, including Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT). During the first quarter, AWS’s net revenues grew 36.6% from the prior-year period to $18.4 billion.

Additionally, with a whopping cash balance above $36.4 billion, it can weather its business risks effectively and continue posting strong operating results.

General Motors (GM)

Automotive giant General Motors (NYSE:GM) has been in a spot of bother amidst supply chain challenges and the economic downturn. Operating results have been subpar of late, but investors need to look at the bigger picture with GM as it targets 50% growth from its new business segments. Thanks to that, it’s looking to double revenue by 2030.

Moreover, as we advance, it will be looking to accelerate its electric vehicle expansion plans to match up against its industry rivals.

GM is aggressively reinvesting its earnings in expanding into the EV market with its enticing model lineup. This should add relevance to the business as it looks to move away from gas-powered vehicles.

Additionally, its autonomous taxi service, Cruise, is operational in 70% of San Francisco, and if it can scale up in the future, it could add massive value to the business. Also, GM stock trades at just 0.4 times forward sales estimates, which significantly adds to its attractiveness at this time.

Advanced Micro Devices (AMD)

Advanced Micro Devices (NASDAQ:AMD) recently completed the acquisition of chip giant Xilinx and gave its first-quarter and full-year guidance a massive shot in the arm. Its revenues grew 71% year-over-year, while its adjusted earnings per share more than doubled. Moreover, it expects 69% revenue growth in the upcoming quarter, driven by Xilinx and its other segments. It expects sales to surge 60% to $26.3 billion for the full year.

Xilinx chips are deployed in some of the fastest-growing market segments, including 5G infrastructure, data centers, aerospace and others. It will likely expand its total addressable market significantly in the long run.

Furthermore, AMD’s graphics card, PC processors, and other offerings contribute immensely to its revenue expansion.

DTE Energy (DTE)

DTE Energy (NYSE:DTE) is a highly diversified utility business. Its segments cover electricity, natural gas and renewables. Like other utility businesses, it has performed consistently over the years, generating stable earnings and offering attractive dividends to its investors.

It’s currently yielding over 2.8% with a forward annual payout of $3.54. Moreover, DTE has been delivering earnings beats in six of the last eight quarters.

It recently bumped its earnings per share target from $5.80 to $6, given its strong start to the year. Over the next five years, it plans to expand its investment plans and develop renewable generation capacity to achieve net-zero emissions by 2050.

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.