7 of the best Reddit stocks to buy if you have $100 to spare

  • These are seven of the best Reddit stocks that investors can buy even with just $100.
  • Sofi Technologies (SOFI): Analyst upgrades and insider buying may be enough to overcome market sentiment.
  • Palantize (PLTR): Revenue growth may become too much for reluctant investors to ignore.
  • Nio (NIO): When EV stocks become more attractive, Nio is likely to lead the way.
  • Wendy’s (MAGNIFYING GLASS): The company may be raising prices, but this should have little effect on revenue.
  • Intel (INTC): Significant investments in R&D could begin to bear fruit.
  • Verizon Communications (VZ): This is a win-win action for investors, no matter what happens in the economy.
  • Robin Hood (HOOD): It is the market and not the model that needs a boost.

Source: shutterstock.com/Luca Lorenzelli

If you see “Reddit shares” and immediately think of meme shares, I encourage you to think again. It’s true the Reddit community has become part of the national conversation due to stocks like GameStop (NYSE:EMG) and AMC Entertainment (NYSE:CMA). However, its members invest in much more than meme stocks.

You may think the market is too risky right now. But there’s also a part of you that knows great stocks are trading at bargain prices. To invest in the best Reddit stocks, you don’t need to have a lot of money. In fact, if you only have $100 and the time to wait for the market to turn around, there are real bargains available.

For many stocks on this list, I’ve tried to give you inexpensive choices where you can buy multiple stocks with $100. However, for some of these Reddit stocks, even buying fractional shares can pay off over time.

SOFI Sofi Technologies $7.19
PLTR Palantize $7.91
NIO Nio $15.46
MAGNIFYING GLASS Wendy’s $16.17
INTC Intel $41.45
VZ Verizon Communications $49.76
HOOD Robin Hood $9.56

SoFi Technologies (SOFI)

SoFi headquarters.  SOFI stock.

Credit: Michael Vi/Shutterstock

Prior to Sofi Technologies (NASDAQ:SOFI) releasing its first quarter earnings report, I wrote that it was swimming against the tide of the market. That may still be true, but don’t tell the company’s CEO, Anthony Noto, who recently bought 39,000 SOFI shares. That’s one of the reasons stocks are up 28% since May 12.

The fintech company is not profitable and is not expected to turn a profit until 2024. However, it makes this list of the best Reddit stocks to buy as it continues to grow revenue and add customers. In addition, the company recently received its banking charter.

On the other hand, it will take several quarters to assess the impact of the rise in interest rates on student loans, which will impact one of the company’s core targets. Nevertheless, analysts are bullish on SOFI stock. The average price target of 12 analysts is $11.21, giving the stock a 53% upside.

Palantir (PLTR)

Palantir (PLTR) logo in a smartphone with a series of stock charts in the background.

Source: Spyro the Dragon / Shutterstock.com

Palantize (NYSE:PLTR) is trading below its direct quote price. This continues a downtrend that began in September 2021. However, I recently posed the question: what more does the company need to do to please investors?

A criticism of Palantir when it went public was its reliance on government contracts. However, when the company announced its results in early May, it saw a 54% increase in revenue year-on-year (YOY) with its business operations and a 31% increase year-on-year. overall income.

Inability to increase income may be a contributing factor. And as Nicolas Chahine points out, investors may be scrutinizing his government affairs.

However, the PLTR stock looks like a stock that deserves investors’ attention, especially to start a small position. There is no dividend, but if the future earnings forecast is accurate, it should meet analysts’ expectations for an average price target of $11.28.

Nio (NIO)

NIO store sign and customer in an electric car store.  NIO is a Chinese electric vehicle company

Source: Robert Way / Shutterstock.com

The electric vehicle (EV) sector has gone from feast to famine. And that was all too true for Nio (NYSE:NIO) Inventory. The stock is down 70% from its 52-week high set in June 2021.

Right now, Nio (and all electric car makers) are mired in supply chain difficulties and dealing with rising supplier costs. As a Chinese company, Nio is also engulfed by Covid-induced lockdowns in its home country. He also faces a radiation problem (perhaps exaggerated). All of these add a risk premium to NIO shares.

However, none of these problems will remain in place forever. Of course, that doesn’t mean they’ll be gone soon. Nevertheless, at its current price and with the launch of new models, NIO is one of the best Reddit stocks to buy. And if you still own stocks, now may not be the time to sell.

Wendy’s (WEN)

A photo of a Wendy's Chicken Sandwich and Chicken Nuggets.

Source: Deutschlandreform / Shutterstock.com

Fast food restaurants thrive in times of economic uncertainty and Wendy’s (NYSE:MAGNIFYING GLASS) has been a picture of consistency since the start of the pandemic. Even though the company recently announced that it will likely increase its prices, this trend is likely to continue.

One reason is that CEO Todd Penegor said inflation was hitting grocery stores harder than the company’s restaurants. This should allow the company’s products to remain of comparative value.

Many market analysts are advising their clients that a return to more “normal” growth is likely in order. This makes WEN shares even more attractive.

This is not going to blow the doors of investors. But as long as it continues to grow earnings and pay a respectable dividend, WEN stock is a solid choice for investors, especially when it’s trading near its 52-week low.

Intel (INTC)

Close up of the Intel sign at their San Jose campus in Silicon Valley

Source: various photographs / Shutterstock.com

Intel (NASDAQ:INTC) makes this list of top Reddit stocks because of its valuation. Specifically, it is one of the only currently undervalued stocks. Finding stocks that trade at a genuine discount to their intrinsic value is key, and the fact that Intel also pays a dividend can be an attractive selling point.

It also looks like the company’s $15.2 billion investment in research and development might start to pay off. Intel recently launched its 12th generation Alder Lake chips for laptops. This is an opportunity for the company to go on the offensive against some of its rivals.

Additionally, Intel Foundry Services, which was founded in 2021, is another path for growth. It’s still in its infancy, but the company has already made significant investments in the US and Europe to add capacity.

Verizon Communications (VZ)

a Verizon showcase building (VZ)

Source: Tada Images / Shutterstock.com

One way investors approach investing in this market is to look for defensive stocks that pay a good dividend. This is the bullish argument for investing in Verizon Communications (NYSE:VZ). The telecommunications giant continues to generate reliable revenues and profits.

And if a recent report from Grand View Research is accurate, the company should have no problem continuing on this path for the next five years or more. This growth will likely come from the second generation of 5G, which is only beginning to gain traction with consumers.

Verizon is a safe choice for investors. If the economy improves, business will benefit as more people will look to upgrade their mobile devices. On the other hand, if the economy goes into a recession, investors will look for stocks with reliable dividends. This makes VZ stock the kind of win-win scenario that should be very attractive to investors.

Robin Hood (HOOD)

A magnifying glass zooms in on the Robinhood (HOOD) site.

Source: dennizn/shutterstock.com

The last of the best Reddit stocks to buy is perhaps the most controversial. I understand Robin Hood (NASDAQ:HOOD) is a stock that investors love to hate. It has no real moat. It has exposure to cryptocurrency markets, which are collapsing at the same rate as stocks. Additionally, many retail investors may give up on their fanciful dreams of getting rich quick through the stock market.

But that only tells one side of the story. The reality is that the company offers many investors who previously may not have felt they had access to the market the opportunity to build wealth over time. There will always be a risk in that. But a bigger pie of investors ultimately benefits everyone.

The company is also getting a fresh injection of cash from billionaire investor Sam Bankman-Fried. He sees “many areas where the company can grow and innovate in the future.”

As of the date of publication, Chris Markoch had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

Chris Markoch is a freelance financial writer who has covered the market for over five years. He has been writing for InvestorPlace since 2019.

Comments are closed.