Best WallStreetBets Stocks to Buy December Week 2 Roundup

As 2021 draws to a close, the meme stock mania, driven by Reddit group WallStreetBets would go down as among the most notable events in history. Acting as a cohort, WallStreetBets members triggered a short squeeze in several stocks.

This week, we’ve seen some new entrants in the WallStreetBets “hall of fame.” Here are the five best WallStreetBets stocks that you can buy in the second week of December.

1. Robinhood (NYSE: HOOD)

Life came a full circle for Robinhood stock this year. Traders on its platform were at the forefront in the meme stock mania. However, after its listing, Robinhood has also become a meme stock. The stock had a dismal listing but soon rose. Meanwhile, the company’s Q3 2021 earnings triggered a selling spree in the stock. It missed the earnings estimate which led to a sell-off in the stock. Robinhood’s growth slowed down in the quarter and transaction-based revenues from cryptocurrency trading came down. In the second quarter of 2021 high volumes of Dogecoin trading led to a spike in the company’s revenues.

Dogecoin revenues fell in Q3 2021

However, as Dogecoin fell out with traders in the third quarter and Robinhood does not have many cryptocurrencies on the platform its revenues fell in the third quarter. Some of the Wall Street analysts also lowered Robinhood’s target price. However, Cathie Wood of ARK invest is among the fund managers who are bullish on the company.

To be sure some of the WallStreetBets members are still annoyed with the company because it halted trading in meme stocks in the first quarter. Because of this several retail traders lost out and could not sell or buy these stocks. Some of the retail traders also pivoted towards other trading apps and ditched Robinhood.

HOOD is a good WallStreetBets stock to buy

HOOD stock is currently a popular stock on WallStreetBets. the stock looks like a good buy as the company expands into other businesses. The recent crash in the stock looks like a good buying opportunity.

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2. Chewy (NYSE: CHWY)

Chewy stock is trading sharply lower today after the company’s fiscal third-quarter 2022 earnings fell short of estimates. The company’s guidance for the fiscal fourth quarter was also barely in line with estimates. Chewy stock hit a 52 week low yesterday and looking at the pre-market price action it looks set to hit another 52 week low today. Meanwhile, currently Chewy is among the most popular stocks on WallStreetBets even as the members have a mixed opinion of this stock.

WallStreetBets members have a mixed opinion of Chewy stock

To be sure, like a lot of stay-at-home companies, CHWY is also battling a growth slowdown. However, the long-term forecast for the pet care industry looks positive. The company is also diversifying the business and earlier this month it partnered with Trupanion to expand into pet insurance.

At current valuations, the growth slowdown largely looks priced in the stock. It might be prudent to buy the dip in CHWY stock and add more shares if it were to dip further. If you are looking to buy a pet care stock, that WallStreetBets members also like, then Chewy fits the bill.

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3. Microsoft (NYSE: MSFT)

Microsoft is also among the popular stocks on WallStreetBets. MSFT stock it’s up almost 50% for the year and is outperforming the markets by a wide margin. Meanwhile, despite the sharp rise this year Wall Street analysts see more upside in the stock. Earlier this week, Morgan Stanley reiterated its bullish rating on MSFT stock and called the valuation multiples reasonable.

Microsoft has seen a valuation multiple rerating

Here it is worth noting that Microsoft valuation multiples have expanded significantly over the last year currently the stock trades at an NTM (next-12-months) PE multiple of 35.6x, which is way above its historical averages. However, the multiple expansion should be seen in context. Markets now rate Microsoft as a software company as it has diversified into high-growth industries like cloud and AI. Under the leadership of Satya Nadella, the company has repositioned itself and stock markets have also taken note.

“In the near-term, lacking a firm bottom for high multiple names, we favor 1) core franchise stocks with reasonable multiples – names like ADBE, INTU and MSFT would top our list here, and 2) names with fundamentals set to turn and trading at reasonable multiples – CRM and PANW should both see accelerating FCF growth into CY22, which is not reflected in current multiples,” said Morgan Stanley on MSFT stock.

Most WallStreetBets members are bullish on MSFT stock

Most WallStreetBets members are bullish on MSFT stock. The company is the second-largest company in the US based on market cap and had dethroned Apple momentarily to become the world’s largest company.

If you want to buy a stock to play the digital transformation story, WallStreetBets-favorite Microsoft should be on your radar.

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4. SPDR Gold Trust (NYSE: GLD)

The SPDR Gold Trust is also currently among the top trending names on WallStreetBets. This is not the first time when WallStreetBets members are discussing a precious metal ETF. Previously the group was also bullish on silver and also triggered a short squeeze in the SLV ETF. Here it is worth noting that triggering a short squeeze in commodities is not as easy as in low float stocks. However, the group could still influence the price action of SLV to some extent.

WallStreetBets likes GLD, you should too

WallStreetBets members are bullish on GLD ETF. Notably, both gold and silver prices are still way below their last year’s highs. However, looking at the uncertain economic environment it would make sense to allocate a part of your portfolio towards gold. If you want direct exposure to gold GLD ETF looks among the best ways to do so.

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5. Invesco QQQ Trust Series 1 (NYSE: QQQ)

QQQ, which tracks the Nasdaq-100 Index, is a popular ETF on WallStreetBets. The ETF gives you diversified exposure to large-cap US technology companies. The Nasdaq has come off its 2021 highs. However, the outlook for US tech stocks looks bullish.

QQQ is popular ETF on WallStreetBets

While WallStreetBets members usually discuss stocks, QQQ is among the rare ETFs that are popular in the group. 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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