Best WallStreetBets Stocks to Buy April Week 1 Roundup

Just when markets had almost written off WallStreetBets and meme stocks, we saw a rally in once-hot Reddit stocks last week. AMC Entertainment and GameStop were at the forefront and trading had to be briefly halted in both of them.

Every week we bring to you the best WallStreetBets stocks of the week. Here are five such stocks that should be on your radar for this week.

1. Advanced Micro Devices (NYSE: AMD)

AMD is the latest entrant to WallStreetBets’ hall of fame. Wall Street analysts have been getting bearish over AMD amid concerns over a slowdown in end markets, especially PCs. Over the last week, several analysts downgraded PC makers. While Morgan Stanley downgraded both Dell and HP, Goldman Sachs downgraded Dell.

Goldman Sachs also lowered its earnings estimates for chipmakers. It downgraded Teradyne, Microchip, and Qorvo and removed AMD from its focus list. The brokerage said that it sees chip demand slowing down amid the slowing global growth and cited the correlation between chip demand and economic growth. It also sees rising inflation and higher interest rates as headwinds for the semiconductor industry.

Notably, over the last year, chipmakers have outlined massive expansion plans to meet the soaring chip demand. If the chip demand tumbles, the global semiconductor industry might see a massive supply surplus.

Barclays downgraded AMD

Barclays’ analyst Blayne Curtis downgraded AMD from overweight to neutral and lowered the target price from $148 to $115. Curtis said, “Where we have an issue is for 2023, as we see cyclical risk across several end markets (PC, Gaming, and broad-based/XLNX).” He added, “We don’t have a smoking gun pointing to a correction under way in any of these markets, but it’s very clear to us that all 3 segments are running at elevated levels.”

Curtis also said that “The core issue here is what will be AMD’s growth trajectory coming out of this potential correction and the answer to this will be just how competitive Intel and ARM will be in 2024/25.”

However, Rosenblatt analyst Hans Mosesmann is not too perturbed over the expected slowdown and believes that AMD can meet its projected 30% sales growth in 2022. Mosesmann also expects AMD to gain market share in the data center market.

WallStreetBets likes AMD

While Wall Street is divided on AMD stock, many WallStreetBets members are bullish on the stock. Notably, while there could be a short-term blip in chip demand, the long-term trajectory looks bullish as chip demand should see a secular rise amid digitization and growing sales of electric and autonomous cars. After the recent correction, AMD looks like a WallStreetBets stock worth looking at.

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2. Grab (NYSE: GRAB)

After the steep fall from its peak, Grab has also made it to the top trending names on WallStreetBets. Grab went public through a SPAC reverse merger and trades at a fraction of its all-time highs. It turned out to be the worst U.S. listing from a Southeast Asian company.

WallStreetBets likes Grab after the crash

Southeast Asia has a total population of 670 million and Grab sees its total addressable market rising to $180 billion by 2025. The company expects to post revenues of $4.5 billion and an adjusted EBITDA of $0.5 billion by 2025. The stock saw a selling spree after reporting dismal earnings where its losses swelled on higher driver incentives. However, from a medium to long-term perspective, Grab is good WallStreetBets stock.

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3. Amazon (NYSE: AMZN)

Amazon is a long-time favorite WallStreetBets stock. It was the worst-performing FAANG of 2021 but things are looking better this year. With a YTD loss of just under 2%, Amazon is outperforming the S&P 500. The company has announced a 20-for-1 stock split which charged up the bulls. It is the first split for the company since 1999.

Amazon is a WallStreetBets stock that you can hold for decades

Amazon is among the best stocks for the long term. The company is present in several industries like e-commerce, cloud, digital advertising, and streaming—all of which are secular growth stories for the coming decade. The company has a market-leading position in the US e-commerce market and is also the leader in the cloud market.

Amazon is among those WallStreetBets stocks that you can hold for decades. The company should continue to increase its sales in double digits in the near foreseeable future and its profitability and margins should also improve.

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4. Apple (NYSE: AAPL)

Apple is another stock that features regularly among the top trending names on WallStreetBets. Wall Street analysts have a mixed opinion on the stock of late, and JPMorgan removed it from the 2022 focus list citing a slowdown in consumer spending. The brokerage however maintained its overweight rating on the stock.

However, Bank of America said that while it expects Apple to lower the iPhone SE production by 20% in the next quarter due to the Russia-Ukraine war, it does not see any major long-term headwinds to demand. Loop is also bullish on AAPL and believes that the company can increase its TAM (total addressable market) with its new iPhone offerings.

WallStreetBets and Buffett like Apple

Apple is the largest holding for Berkshire Hathaway even as Buffett hasn’t added any new shares since 2018. Apple’s installed device base has surpassed 1.8 billion. Also, it had 785 million paid subscriptions in the quarter, which is another record. These subscribers are expected to drive APPL’s growth in the long term. Apple also has a cash pile of $80 billion which it is expected to use for buybacks. The company is now aggressively looking to grow in financial services which would also drive its long-term growth.

Overall, Apple is another WallStreetBets stock that you can hold for the long term.

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5. SPDR Gold Trust (NYSE: GLD)

Mostly, WallStreetBets members discuss individual stocks but at times the group also discussed ETFs. Currently, four ETFs, namely GLD, OIL, QQQ, and CORN are quite popular among WallStreetBets members. GLD is a pure-play exposure to gold and the ETF tracks the price action of gold adjusted for expense ratio. Gold can be a good portfolio diversifier. While rising interest rates are negative for gold, the current geopolitical environment and higher interest rates are positive.

GLD is trending on WallStreetBets

If you want to diversify your portfolio, GLD is one WallStreetBets ETF that you can consider. ETFs can be a good investing strategy, especially for investors who lack the time or analytical skills to pick individual stocks. Their low expense ratio makes them an attractive investment option.

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