10 Reddit YOLO Stocks That Are Losing Ground
In this article, we discuss the 10 Reddit YOLO stocks that are losing ground. If you want to skip our detailed analysis of these stocks, go directly to the 5 Reddit YOLO Stocks That Are Losing Ground.
Retail investors have become an important market force in recent months, giving established stock market experts a run for their money by driving record rallies in equities that offer little in terms of basic fundamentals and are thus being shorted by investment firms with billions of dollars in capital. On the heels of research by investment bank Goldman Sachs that retail investors will pour over $400 billion into stocks this year, Marketplace Fairness revealed that most retail investors only started dabbling in stocks during 2020.
In January 2020, these retail investors accounted for just 17% of the total trades on the market, a number that jumped to over 25% within six months. The median age of these traders is just 31 and most of them use online applications like Robinhood for trading. These investors also frequent social media platforms like Reddit to discuss strategy, making Reddit forums a red-hot item that are monitored closely by big finance to keep abreast of latest developments. These investors favor growth firms that are acting as disruptors in their market sector for investments.
Some of the most popular stocks on Reddit presently include Tesla, Inc. (NASDAQ: TSLA), Uber Technologies, Inc. (NYSE: UBER), Cloudflare, Inc. (NYSE: NET), Apple Inc. (NASDAQ: AAPL), NIO Inc. (NYSE: NIO), ViacomCBS Inc. (NASDAQ: VIAC), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), among others. According to news agency Reuters, top retail-focused brokerages had a combined client asset value of more than $15 trillion at the beginning of this year.
Not all stocks favored by retail investors are trading at high prices. Some have even registered losses in recent weeks. However, these investors have truly transformed the world of finance. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
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