Best WallStreetBets Stocks to Buy March Week 1 Roundup

US stock markets continued to remain volatile in the last week amid the escalation in the Russia-Ukraine war. Most of the WallStreetBets stocks also fell in the quarter as the sell-off in growth names continues. What are the five best WallStreetBets stocks that you can buy now?

1. Robinhood (NYSE: HOOD)

WallStreetBets and Robinhood have had a chequered history. A lot of WallStreetBets members trade on the HOOD platform and were miffed when the company halted trading in meme stocks last year. This meant that several of the retail traders could not exit their positions at higher prices and therefore suffered losses. A lot of WallStreetBets members turned against HOOD after the episode. However, after the crash in HOOD stock post the IPO, WallStreetBets members helped trigger a short squeeze rally in the stock.

Robinhood and WallStreetBets have a troubled history

Robinhood reported revenues of $363 million in the fourth quarter which were similar to what analysts were expecting. It posted a net loss of $423 million in the quarter which was slightly ahead of estimates.

The company reported monthly active users of 17.3 million in the quarter, which was below the 18.9 million that it reported in the third quarter. It had a total of 22.7 million funded accounts at the end of the quarter, which was slightly ahead of the 22.4 million that it reported at the end of September.

HOOD is a good WallStreetBets stock for the long term

While Robinhood’s fourth-quarter earnings were more or less in line with estimates, its first-quarter guidance spooked investors. The company expects its revenues to be below $340 million in the quarter, which would mean a YoY fall of 35%.

The near-term environment for HOOD looks challenging. Last month, Atlantic Equities reiterated its neutral rating on the stock and said “Revenues appear to have more or less bottomed out, which is promising. However, the comps for 1Q22 and 2Q22 are extremely challenging so revenue and earnings growth are likely to remain sharply negative in 1H22.”

Meanwhile, HOOD stock looks like a good WallStreetBets stock to buy for the long term. At these prices, it looks worth the risk to bet on this fintech stock.

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2. Alibaba (NYSE: BABA)

Alibaba has also regularly featured on WallStreetBets and even now it is among the top trending names on the subreddit. BABA stock has been falling since the fourth quarter of 2020. The stock has continued to tumble in 2022 as concerns ranging from China’s tech crackdown and the slowdown in the Chinese economy take a toll on Chinese stocks.

WallStreetBets members find Alibaba stock undervalued

Several WallStreetBets members find Alibaba stock undervalued, a view shared by many including Charlie Munger. Ashwath Damodaran, who’s known as the “dean of valuation” said last year that he’s now ready to buy BABA stock. He said “At the prices at which it’s trading, I think not withstanding all the worries about corporate governance and the Chinese government, I think it’s well-positioned to be a long-term investment. He called BABA a solid company and said that he likes the stock as a long-term investment.

Daniel O’Keefe, a managing director and portfolio manager at Artisan Partners, believes that BABA is possibly the cheapest non-Russian company in the world.

He said, “Alibaba trades for a single-digit multiple of free cash flow and three or four times EBIT [earnings before interest and taxes]. So, you know, it’s the largest e-commerce company in the world that is levered to digitization and the expansion of the increasing wealth of the consumer and middle class in China.”

If you are willing to take the risk of investing in a Chinese company, BABA is possibly the best WallStreetBets stock for you. The stock looks too cheap to ignore at these prices despite all the risks that it is facing.

3. Meta Platforms (NYSE: FB)

Facebook’s parent company Meta Platforms stock is underperforming the FAANG peers by a wide margin in 2022. However, WallStreetBets members see better days ahead for the social media giant. The stock has tumbled after the fourth-quarter earnings release as the company’s guidance had spooked investors.

Meta Platforms said that it expects to post revenues between $27-$29 billion in the first quarter which would mean a YoY growth between 3-11%. The company’s guidance fell short of the $30.1 billion that analysts were expecting. It said that its revenues in the quarter would be negatively impacted by both impressions and price growth. Also, it expects an almost $10 billion hit to its annual revenues due to the iPhone privacy rules.

WallStreetBets finds FB stock attractive

Meta Platforms was already the cheapest FAANG stock and its valuation discount only increased in 2022. While some of the headwinds like the Apple iPhone privacy features are structural in nature, at these prices FB stock looks a quite attractive way to bet on metaverse.

4. SoFi (NYSE: SOFI)

SOFI stock is also among the popular WallStreetBets stock. The company released its fourth-quarter earnings earlier this week. The stock had soared after the release as markets gave a thumbs up to its earnings and guidance. SOFI reported a per-share loss of 15 cents which was narrower than the 17 cents per share loss that analysts were expecting. The company added 523,000 new members in the quarter which was up 39% from the previous quarter and was a new record. It posted an adjusted EBITDA of $5 million which took its full-year adjusted EBITDA to $30 million. The company has now posted a positive adjusted EBITDA for six consecutive quarters.

SOFI is a good fintech stock

SoFi’s top line is growing at a fast pace and it expects its revenues to increase 43% annually between 2020 and 2025. The company expects its revenues to rise to $3.67 billion by 2025 and is forecasting EBITDA margins at 32% that year. The bank charter would lead to more upside for the company’s financial projections. It looks like a good WallStreetBets stock to buy and bet on the fintech industry’s positive long-term outlook.

5. Invesco QQQ Trust Series I (NYSE: QQQ)

Currently, several ETFs are among the top trending on WallStreetBets. These include commodity ETFs as well as a Russia ETF. QQQ which tracks the Nasdaq has been a long-time favorite of WallStreetBets members.

The ETF gives you diversified exposure to large-cap US technology companies. The Nasdaq Index underperformed S&P 500 in 2021 and has continued to underwhelm in 2022 amid the fall in tech and growth stocks.

WallStreetBets likes QQQ

If you want to bet on something that’s popular among WallStreetBets members but are wary of investing in individual stocks, QQQ would fit the bill. QQQ is quite liquid and the expense ratio is also low. The ETF is a good low-cost way to invest in a basket of US tech stocks.

ETFs can be a good investing strategy, especially for investors who lack the time or analytical skills to pick individual stocks. Especially under the current market environment, where we have heightened volatility, ETFs could turn out to be a better bet.

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