Could These 3 Stocks Be The Next GameStop According To Reddit Investors? (2024)

Reddit Community r/WallStreetBets Sparks GameStop’s Monstrous Rally. Are These Stocks Next?

GameStop (NYSE: GME) isn’t just any typical brick-and-mortar store that sells video games. Unless you have been living under a rock, you would almost certainly come across GME stock. You may have been dumbfounded by what is happening with it? Well, you are not alone. There’s isn’t any specific news you can find that almost doubled its stock price on Tuesday. And it’s even absurd to think that GME stock climbed to around $364 per share in Wednesday’s trading session as of 11:11 a.m. ET, up from $18 just a couple of weeks ago.

“Nothing that GameStop has done warrants this,” says Michael Futter, a game industry analyst and founder of the consulting firm F-Squared.

Perhaps, investors could argue that Michael Burry of The Big Short fame helped laid the foundation for the bullish stance on GameStop. But we all know that’s not really the case because he expressed his bullish stance some time ago. Way before the ongoing retail frenzy. The truth is, the spike we saw in GME stock recently was purely due to what appears to be a group of retail investors on Reddit taking on Wall Street. As a result, short-seller Melvin Capital had to secure additional funding. If you thought 2020 was an unprecedented year in the financial markets, you haven’t seen 2021. Here’s what happened.

These Wild Swings Won’t Go On Forever, Will They?

It all started last week when many Wall Street firms were betting against the struggling game retailer. Yet, investors on Reddit believed they could force a market rally. Of course, retail investors alone cannot pull off such a rally without a catalyst. Certainly, Chewy’s (NYSE: CHWY) founder Ryan Cohen is aiming for GameStop to take on Amazon (NASDAQ: AMZN) by beefing up its e-commerce framework. Whether that will materialize or not is another question to answer. But Cohen’s experience at the pet food e-commerce company undoubtedly brought instant credibility.

And then came along Musk who recently discovered he can drive people to company’s stock. Recall that he tweeted about Signal Advance (OTCMKTS: SIGL) and Etsy (NASDAQ: ETSY), and both stocks jumped. Now, he’s tweeted about GameStop, and the stock jumped even further during post-market hours. It does seem to me that the combination of strong retail participation and high-profile corporate leaders could lead to even bigger things. Now, the Reddit community has also turned its eyes on the following stocks, attempting to pull the same trick on the following trending stocks. Do you have these top stocks on your watchlist right now?

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Top Stocks To Watch For Potential Breakout Gains Like GameStop

• BlackBerry (NYSE: BB)
• AMC Entertainment (NYSE: AMC)
• Nokia (NYSE: NOK)

BlackBerry

First up, up we have Reddit’s next target BlackBerry on the list. The stock has made a grand start to 2021, with its stock rising nearly 200% year-to-date. With the company’s enormous potential, it is easy to forget that BB stock has been trading sideways for most of 2020. What’s more, with investors from Reddit has been pulling the same trick with the once-popular smartphone maker, BB stock is clearly on many investors’ radar. But the real question here is, is BB stock still a buy at this valuation?

Despite failing to deliver on its promise in the last few years, many are speculating that BlackBerry’s transformation from a leading smartphone manufacturer to a software company could start bringing in real growth starting this year. What’s more, like many in the software business, a good part of BlackBerry’s revenue is recurring. Investors certainly like that. Its recent initiatives with Amazon and enterprise mobility management and security could offer new revenue sources. And that could bring the company to greater heights.

Given how volatile the company’s stock may be, the recent run-up has attracted a lot of attention. Perhaps, it is a sign of bigger things to come. If you are looking for a quick flip, the risks we are dealing with this stock may be higher. Unless you could stomach such huge swings, you may be better off waiting for the stock to take a breather before piling in. Then again, that could be just me. Some analysts believe that the current valuation still looks attractive even after the recent surge. Whether it’s the increasing need for cybersecurity or the rise of autonomous vehicles, BlackBerry has something to offer. Considering all these, would you say that BB stock’s best days are yet to come? Only time will tell.

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AMC Entertainment

Coming up next on Reddit’s list is AMC Entertainment. The cinema operator was on the verge of bankruptcy in recent weeks. AMC Entertainment has been struggling to stay operational during the pandemic and has to shut its operations most of the time last year. Hence, it’s only a matter of time that short sellers will emerge and take advantage of the dire situation of the company. The short sellers may have had a great start when its stock price plunged below $2 per share. But that’s no longer the case.

The company has been in the limelight recently after getting fresh funding to keep the company afloat. With bankruptcy no longer an imminent issue, AMC stock jumped 12.22% on Tuesday intraday’s trading and skyrocketed more than 235% during pre-market hours as of 8.12 a.m. ET. With its balance sheet bolstered, the company believes that it has enough liquidity to keep its operation running until “deep into 2021”.

It’s understandable to have confidence in a stock if there’s a valid reason. Even though these days, fundamentals may not be exactly what you need to see a stock flying. It may be the vaccine hopes, new offerings from the company, or another retail frenzy like the one we saw with GameStop that sent its stock flying. The company may be on the steadier ground now, but the danger is not over yet. Until patrons return to the movie theaters in droves, there may still be a long way to go before AMC’s business recovers. But in the meantime, could AMC stock continue its rally?

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Nokia

Last, but not least, another trending stock on Reddit is telecom company Nokia Corporation. You may remember Nokia as the “old-school” cell phone that you can play the game snake on. As you may have already forgotten that at one point, Nokia was the largest mobile phone and smartphone provider. But that’s all history. The company started to shift gears to telecom infrastructure after it was acquired by Microsoft (NASDAQ: MSFT) back in 2014. However, in 2016, Microsoft sold Nokia’s smartphone business. Now, Nokia helps support large telecommunication companies like T-Mobile (NASDAQ: TMUS) build out their 5G network. In fact, Nokia recently announced this month that they signed a 5-year extension with T-Mobile to expand T-Mobile’s extended range 5G coverage.

The President and CEO of Nokia, Peter Lundmark stated, “Nokia has a long-standing and collaborative partnership with T-Mobile and our industry-leading 5G RAN solutions will underpin the new T-Mobile network. The expanded and upgraded 5G network that leverages all spectrum bands will deliver exciting new solutions to even more people and businesses, and our technology will play a fundamental role in delivering these compelling connectivity experiences for work and play.”

Since the market crash in March 2020, NOK stock has almost doubled. The company saw its stock price start the year on a strong note, which NOK stock has seen a 21.59% increase. The stock jumped as high as $5.27 per share before closing at $4.73 on Tuesday’s intraday trading. With all that being said, will NOK stock be able to keep up its momentum throughout this week? Add it to your watchlist to find out.