Should You Invest in These 3 Reddit Stocks Right Now?
Several companies that trend on
social media platform Reddit have seen a massive surge in stock
prices. Usual suspects such as GameStop (NYSE:
GME) and AMC
AMC) have in fact gained by a monstrous 909% and
1,790% respectively year to date. But while most of these companies
have weak financials and remain vulnerable due to their underlying
volatility, is it possible to find a stock that is a good long-term
Here, we take a look at
three most popular Reddit stocks
in SmileDirectClub (NASDAQ:
SDC), Lucid Motors (NASDAQ:
LCID) and BlackBerry
BB) to see if they are
viable investments today.
SmileDirectClub is down 68% from record
Shares of SmileDirectClub are
down 68% from all-time highs. The oral-care company offers clear
aligner therapy treatments for individuals. It manages the
end-to-end process right from marketing, aligner manufacturing,
fulfilment, doctor treatment and monitoring via a network of 250
state licensed orthodontists and general dentists.
It disappointed investors on the
back of its Q2 results, as SDC reported a net loss of $55 million
despite recognizing around $1,885 for every case it shipped. Its
revenue growth stood at 63% year over year as SDC’s reported sales
were $174 million. But investors were quick to notice that sales in
Q2 experienced a sequential decline of $24 million and was lower
than Q2 sales in 2019.
Analysts expect sales to rise by
15.6% year over year to $759.25 million in 2021 and by 20.4% to
$914 million in 2022. However, it is expected to report a net loss
of $0.68 per share in 2021 and $0.3 per share in 2022.
One of the top-performing
companies in the electric vehicle space, Lucid Motors stock has
more than doubled in 2021. Lucid Motors is yet to generate any
sales but is expected to ship its first batch of EVs in the next
few days. Its Lucid Air EV reportedly has a range of over 500 miles
on a single charge which is the highest among its
Further, the company also
confirmed it has received over 10,000 pre-orders for its vehicles
which will allow it to generate millions of dollars in sales going
forward. In fact, the company expects to rake in $900 million in
total sales from these orders.
$350 million in capital expenditures
between 2021 and 2023 which will be utilized to improve its
manufacturing capabilities and invest in research and
The EV industry is all set to
experience double-digit growth in the upcoming decade
LCID stock a good bet for growth
investors right now.
The final stock on my list is
Canadian tech company BlackBerry. The former smartphone
manufacturer pivoted its business model to provide enterprises with
software and security-related solutions.
In the most recent quarter,
Blackberry’s sales were down by 32% year over year at $175 million
while adjusted net losses stood at $0.06 per share. Despite its
top-line decline, BB stock gained momentum as it reported a
narrower net loss compared to Wall Street estimates.
BlackBerry claimed its
cyber-security business experienced strong growth compared to its
sequential quarter as billings were higher compared to Q1. Further,
its Internet of Things business also posted robust sales despite
headwinds arising due to the shortage of semiconductor chips and
supply chain disruptions.
BlackBerry is optimistic the
ongoing enterprise shift towards cloud computing will continue to
increase demand for its portfolio of services.
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