Best WallStreetBets Stocks to Buy April Week 2 Roundup

US stock markets closed with losses last week amid concerns over aggressive tightening by the Federal Reserve and continued escalation in the Russia-Ukraine war. Some of the usual WallStreetBets stocks like AMC Entertainment and GameStop tumbled in the week amid the risk-off sentiment.

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. Robinhood (NYSE: HOOD)

Robinhood and WallStreetBets have had a long and nuanced history. While a lot of traders on the group trade on the platform and also triggered a meme stock rally in HOOD stock, they were also furious at the company when it blocked trading in meme stocks last year. While Wall Street analysts have been getting bearish on Robinhood stock, WallStreetBets traders seem to like HOOD after the crash.

WallStreetBets likes Robinhood while Wall Street looks the other way

Yesterday, Goldman Sachs downgraded the stock from neutral to sell and assigned a target price of $13. “We believe softening retail engagement levels (particularly among the low-end consumer), continued weakness in account growth, and a limited path to near term profitability are likely to limit outperformance over the next twelve months,” said Goldman Sachs’ analyst Will Nance.

Nance added, “Intra-quarter app download data suggests user growth has remained depressed, and we see an acceleration in user growth as a key requirement for shares to re-rate higher.” He also said that the company’s earnings estimates look aggressive and expressed doubt over its ability to turn profitable next year.

JMP meanwhile reiterated its overweight rating on HOOD stock and was impressed with the launch of its debit card ahead of time. However, generally, analysts have been slashing Robinhood’s target price over the last four months.

Morgan Stanley believes that Robinhood’s long-term forecast looks bullish even as the brokerage does not see it moving much higher in the short term.

HOOD is a WallStreetBets stock worth looking at

Robinhood has been looking at ways to increase its revenues. It has increased the extended hours trading time on the platform and is advocating round-the-clock trading in US stocks. The announcement led to a rise in the HOOD stock as more trading would mean more revenues for the popular trading app. WallStreetBets likes the stock after the recent moves.

Also, the company has now extended its crypto wallet to all the customers on its platform. The company sees cryptos as a key driver and is looking to add more cryptos as well as crypto-related services like lending and staking to the platform.

Overall, at these prices, HOOD looks like a WallStreetBets stock worth watching in April.

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2. SoFi (NYSE: SOFI)

SoFi is another stock where WallStreetBets and Wall Street have differing views. After President Joe Biden extended the moratorium on student loans, several analysts took a bearish view of SoFi. However, many WallStreetBets members believe that the crash in SOFI stock is a good buying opportunity.

WallStreetBets finds SoFi a buy

To be sure, the extension of the student loan moratorium is a negative for SOFI and it also lowered its 2022 guidance after that. SOFI now expects to post net revenues of $1.47 billion in 2022, which is $100 million lower than its previous guidance. It also lowered its adjusted EBITDA guidance by $80 million and now expects the metric at $100 million.

Meanwhile, Biden’s decision to extend the student loan moratorium is not exactly a surprise. Given the multi-decade high inflation and his falling popularity, it looked almost certain that he would extend the moratorium. The next extension also looks almost certain as it would be due only a few months before the midterm elections.

However, SoFi’s long-term forecast looks positive as fintech companies continue to snatch market share from traditional banks. The company is a financial services powerhouse having multiple products under its fold.

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 could lead to more upside for the company’s financial projections.

After the recent crash, SOFO looks like a good WallStreetBets stock to buy and play the fintech story.

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3. Apple (NYSE: AAPL)

Apple is among the stocks that regularly feature among the top trending names on WallStreetBets. It is currently among the top trending names on the group even as the opinion of WallStreetBets members is quite divided over the stock.

Recently, JPMorgan removed Apple stock from its focus list. “We expect the moderation in consumer spending to temperate expectations for upside from the recent iPhone SE launch (although offset by product cycle momentum for iPhone 13) as well as limiting opportunities for upside in Services as gaming engagement in China moderates materially in relation to growth both from the pull back in consumer spending as well as tough compares,” said JPMorgan analyst Samik Chatterjee.

Apple is a long-time favorite stock of WallStreetBets

However, the brokerage kept its overweight rating and $210 target price. It said, “In summary, lead times have moderated in almost all geographies, with the exception of China, where store pick-up continues to be unavailable and delivery lead times have expanded modestly – although, at this time it is tough to discern lead time extensions on account of demand versus logistics or COVID lock-down related delays.”

Not all analysts are bearish though on this WallStreetBets stock and 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.

All said, if you are looking to buy a WallStreetBets stock for the long term, Apple would fit the bill.

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4. ContextLogic (NYSE: WISH)

If you are comfortable with taking some extra risk, WISH is one WallStreetBets stock that you can look at. The company has been facing multiple troubles like falling revenues and user numbers and a decline in active users. Its CFO and CEO also quit last year within a year of the company going public. The stock trades at a fraction of its IPO price. However, WallStreetBets finds it a name worth betting on.

WISH is a high-risk WallStreetBets stock

While WISH is a high-risk WallStreetBets stock, the valuations look quite reasonable at around 1x its projected 2022 revenues. If the company can turn around the business, it could rise multi-fold from these levels. However, if the cash burn and perennial losses don’t come down, it might have to face a survival crisis.

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5. SPDR Gold Trust (NYSE: GLD)

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. Most WallStreetBets members are bullish on GLD.

GLD can diversify your portfolio

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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