Best WallStreetBets Stocks to Buy December Week 5 Roundup

Looking back at 2021, the meme stock mania popularized by Reddit group WallStreetBets was the key aspect of markets.

As 2021 draws to a close, WallStreetBets looks like a pale shadow of what it was at its peak. While some of the meme stocks like GameStop and AMC Entertainment are still up significantly for the year, many others are languishing near their 52-week lows despite the markets hitting a new closing high. Recently the group of meme stocks hit a multi-month low. That said, some of the top trending names on WallStreetBets still look like good buys. Here are five such stocks that you can consider in the final week of December 2021.

1. NIO (NYSE: NIO)

WallStreetBets members have a flair for EV (electric vehicle) stocks. Currently, NIO is among the most popular name in the group. The stock has underperformed the markets by a wide margin in 2021. Even as most EV stocks recovered smartly from their 2021 lows, NIO recently hit a new 52-week low. While it has since bounced back, it is down sharply from the peaks.

Meanwhile, the launch of new sedans like the ET7 and the ET5 and the entry into new geographical markets would drive the growth for NIO. Wall Street analysts also agree with WallStreetBets members when it comes to NIO and most have rated it as a buy.

Wall Street and WallStreetBets both love NIO stock

Earlier this month, Morgan Stanley advised investors to buy the dip in NIO stock. “The stock has lagged peers YTD as growth stalled on the component crunch, plant restructuring and no new products. However, it’s time to turn the page — a superior ecosystem, broadening customer and distinct branding make the setup unique and favorable for NIO to gather strength into 2022,” it said in its note.

Looking at the valuation discount of NIO as compared to other EV stocks, it looks among the best WallStreetBets stocks to buy for 2022.

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2. Disney (NYSE: DIS)

Disney is another trending stock on WallStreetBets and like NIO it is underperforming the markets by a big margin in 2021. While there are valid concerns over the omicron variant, long-term investors can accumulate Disney shares at these prices.

Wall Street analysts also have a bullish forecast for DIS stock and it has received a buy rating from 21 out of the 30 analysts polled by CNN Business. Nine analysts have a hold rating. None of the analysts rate the stock as a sell. Disney has a median target price of $198 which is a 27% premium over current prices. The street high target price of $220 is a premium of 41% over current prices.

WallStreetBets likes Disney for the streaming growth

The subscriber growth for Disney slowed down, and in the fourth quarter of the fiscal year 2021, it added only 4.1 million paying subscribers. However, the company had forewarned about the slowdown well in advance, blaming lower content production.

Disney expects Disney+ subscriber numbers to be between 230-260 million by the fiscal year 2024. After adding the subscribers for Hulu and ESPN+, it expects to have been 300-350 million subscribers by then.

Meanwhile, while analysts have lowered their target price on DIS stock, most remain bullish on the company’s long-term growth forecast. If you want to buy an entertainment stock that WallStreetBets also likes, Disney should definitely be on your radar.

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3. Tesla (NYSE: TSLA)

Tesla is the most popular stock on WallStreetBets this week like it was in the previous week. The stock has outperformed the markets in 2021 and commands a market cap of $1 trillion. While it may seem high, it should be read in context as startup EV companies with only a handful of deliveries have seen their market cap swell above $100 billion.

Tesla’s annual delivery run rate is now expected to be running above 1 million cars which sounds quite impressive. Meanwhile, some WallStreetBets members have a bearish view of Tesla stock. Incidentally, even Wall Street has a divergent view of the company and some see the stock in a bubble. On the other hand, bullish analysts see the stock rising even higher. Cathie Wood of ARK Invest, who is among the most prominent Tesla bull, expects the stock to triple by 2025.

Both WallStreetBets and Wall Street are divided about Tesla

Adam Jonas, another Tesla bull, likes the company for its leadership in battery technology and autonomous driving. He also sees the company’s high-margin software business as a key driver. Tesla’s CEO Elon Musk also believes that the software part of the business will add real value for investors in the long term. The company has gradually increased the price tag for its FSD (full-self driving) to $10,000 and expects it to rise to $100,000 over the long term.

The company is expected to release its delivery report for the current quarter early next month and several brokerages including Baird and Credit Suisse expect a bumper report from the EV giant.

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4. SoFi (NYSE: SOFI)

Fintech giant SoFi is another popular WallStreetBets stock that you can consider for 2022. The stock has tumbled from its highs and now looks like a good buy for 2022 especially ahead of its impending bank charter that could lead to a structural improvement in the company’s earnings as well as valuation multiples.

SoFi is growing at a fast pace and added 377,000 new members in the third quarter which was the second-highest quarterly member growth in its history. While a lot of growth names have been witnessing a slowdown, SoFi’s growth outlook has been largely intact.

WallStreetBets likes SoFi ahead of the bank charter

One of the key USP of SoFi’s platform is the massive cross-sell opportunities. During the third quarter, SoFi witnessed an all-time high cross-buying of products by existing customers. It said that SoFi Money, SoFi Invest, and SoFi Credit Card were responsible for 73% of cross-buying opportunities.

Given the growth outlook for the fintech industry, SoFi is one WallStreetBets stock that should be on your radar in 2022.

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5. Apple (NYSE: AAPL)

Apple is another popular WallStreetBets stock. Wall Street analysts have also been turning bullish on Apple stock. Earlier this month, Citi analyst Jim Suva raised his target price on the stock from $170 to $200. “We do recognize that regulatory risks remain a major overhang on the stock, but we view these as headline risk rather that fundamental risk. … Apple’s current market value does not reflect new product category launches. This will change with the launch of the new AR/VR headset in 2022,” said the note.

The brokerage also expects Apple to scale up buybacks in the current fiscal year. Incidentally, Warren Buffett has also been supportive of Apple’s massive buyback program and the iPhone maker is the largest holding for Berkshire Hathaway.

Buffett, WallStreetBets, and Wall Street love Apple

It is not very often that we find WallStreetBets, Wall Street analysts, and Warren Buffett having the same opinion over a stock. Apple is among those names which both Warren Buffett and WallStreetBets loves.

The stock still looks a good buy despite its mammoth market cap of almost $3 trillion. Foray into electric and autonomous cars would drive the next round of growth for the company and could take the stock much higher from these levels.

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