All the theories: What’s Wall Street Bets’ next stock choice?
The subreddit community r/WallStreetBets set unprecedented changes in the marketplace. They skyrocketed the price of GameStop stock to nearly $500 per share. Wall Street freaked out because they were attempting to short squeeze hedge fund managers who were short-selling the company.
The gains from GameStop were in the hundreds of thousands for some members of the subreddit. Many investors are now trying to figure out what’s r/WallStreetBets next GameStop. Every day it seems a member makes an argument for the next GameStop. Here are some of the most popular suggestions.
AMC Theaters might have taken a bigger hit during the coronavirus pandemic than GameStop. At least GameStop has an e-commerce market despite malls and brick & mortar stores being closed during the pandemic. AMC Theaters have been closed in most parts of the globe for nearly a year.
AMC’s stock price has been dropping since 2016. For the majority of 2020, the price has been fluctuating between $3 & $7. However, through January, the price skyrocketed from $2 to nearly $20, partly thanks to r/WallStreetBets that promoted AMC as one of the best stocks to buy now. AMC & GameStops stock price chart they’ve been identical.
r/WallStreetBets is targeting AMC for the same reason they targeted GameStop. Both companies are nostalgic for these retail traders and want to save them from their money woes during the pandemic.
Canadian cannabis companies trading on the U.S. stock exchange shot up in recent weeks. Cannabis has been a good investment during the pandemic because states with legalized marijuana considered dispensaries an essential business. Though with the election of Joe Biden, the hope is he legalizes marijuana in the next four years.
However, investors say they are investing in the wrong companies. They’re afraid the cannabis market in Canada, which already allows recreational marijuana, isn’t a great investment than investing in U.S. cannabis companies. If the U.S. decides to legalize marijuana, Canadian companies won’t profit like their U.S. competitors.
Because marijuana is only legal at the state level, U.S. companies can’t be traded on the U.S. exchanges like the Nasdaq or New York Stock Exchange. Robinhood, the popular app used by the r/WallStreetBets community, only allows trading on the New York Stock Exchange. Any profit U.S. cannabis companies would reap if the U.S. legalized marijuana wouldn’t transfer to retail investors.
According to The Guardian, the U.S. Mint couldn’t meet its demand for silver bullion coins. Most bullion coins are collectibles & gifts. However, they’re an investment like buying a gold or silver bar.
One r/WallStreetBets member believes silver is due for a price increase. Basic economics would tell you if you have a shortage, the price is too low. One of the major things the member points out is how companies like Tesla, Apple, and medical supply companies use silver and will pay anything to make sure their production doesn’t slow down. The hope is to get in while the price is low and hold while prices climb.
Despite their phones off the market in the U.S., Nokia is still very present internationally. Even though it might seem like a dumb investment, there are many reasons to invest in Nokia.
In 2019, Canada offered Nokia a $40 million deal to research 5G in the country. One of Nokia’s biggest projects is building 5G in Taiwan. They also received a $14.1 million contract from NASA to build a 4G network on the moon. NASA is planning to start building the network by 2022 so NASA can send astronauts back to the moon by 2024 and have a “sustainable presence by 2028.
NASA claims the network will allow astronauts to make voice & video calls and will update the network to 5G in the future. Because of these big projects, Nokia is a pretty smart investment. The stock is currently trading around $4 but should be on your radar for big gains if r/WallStreetBets gets involved.
What do you think will be the next GameStop stock from r/WallStreetBets? Do you think these predictions are correct? Let us know in the comments.