Best WallStreetBets Stocks to Buy February Week 1 Roundup

Markets have been quite volatile over the last couple of weeks amid the earnings season. This week, we have some new entrants to the WallStreetBets hall of fame. What are the five best WallStreetBets stocks that you can buy in February 2022?

The fortunes of WallStreetBets have fallen in line with meme stocks. However, the group also discusses some of the fundamentally strong companies.

1. Peloton (NYSE: PTON)

Peloton stock has been sliding for quite some time now. It tumbled 76% in 2021 and was the worst-performing Nasdaq component. Peloton has reportedly hired management consulting giant McKinsey to study the business structure and suggest steps to reduce the costs. The company already has a hiring freeze in place and has reportedly asked employees at the retail stores to take customer service calls during lean periods. The company is also lowering production to align it in line with demand.

Only about a year back, Peloton was a supply-constrained company and was able to sell everything that it was producing. However, a flurry of events including a fatal crash and the resultant recall have led to a lot of negative publicity for the company.

WallStreetBets is bullish on Peloton amid acquisition rumors

WallStreetBets members are bullish on Peloton stock amid reports that several companies including Amazon were looking to buy the company. Amazon’s growth has slowed down and last quarter its sales increased in only single digits. Amazon already has a connected health service with its Halo Health and Wellness tracker. PTON stock is trading sharply higher in post markets after the reports.

Here it is worth noting that the deal is not certain yet and may or may not formalize. That said, after the steep fall in PTON stock it anyways looks like a good buy. It is among the top trending name on WallStreetBets and might see more action next week as more details emerge on the possible acquisition.

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2. Meta Platforms (NYSE: FB)

Meta Platforms stock has fallen to a new 52-week low after it plunged following its fourth-quarter earnings report. The company’s revenues increased 20% YoY to $33.67 billion in the quarter which was slightly ahead of the $33.4 billion that analysts were expecting. However, its EPS came in at $3.67 in the quarter which was below the $3.84 that analysts were expecting.

While its average revenue per user of $11.57 was higher than the $11.38 that analysts were expecting, its daily active user count of 1.93 billion was lower than the 1.95 billion that analysts were expecting. Also, it reported MAUs (monthly active users) of 2.91 billion, below the 2.95 billion that analysts were expecting. The company’s MAUs fell on a sequential basis in the quarter, a first in its history as a publicly-traded company.

WallStreetBets likes FB stock after the crash

WallStreetBets members like FB stock after the crash. Wall Street analysts also see the stock bouncing back from these levels. “We have witnessed this happen back in 2Q18 as FB transitioned from Feed to Stories. … Revenue growth decelerated for three quarters before re-accelerating again. FB was able to close the gap between by increasing ad load and implementing [direct response] features,” said Mizuho analyst James Lee while lowering his target price by $25 to $425.

At these prices, both Wall Street analysts and WallStreetBets members seem to believe that FB stock is a good buy.

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3. Amazon (NYSE: AMZN)

Amazon stock has been a long-time favorite of WallStreetBets members. The stock is among the top trending names on the group after its fourth-quarter earnings. While Amazon missed revenue estimates in the quarter, its profits were way ahead of estimates.

Notably, in its third-quarter earnings call, Amazon had warned that its operating profit in the fourth quarter might fall to as low as zero amid cost pressures. However, its actual performance was much better than what it had envisioned three months back and it posted an operating income of $3.5 billion in the quarter.

As many were expecting, Amazon said that it would increase the price of its Prime subscription by $20 to $139. The cost for the monthly subscription would rise by $2 to $14.99. It is the first price hike for Prime service in four years.

WallStreetBets finds Amazon stock attractive

WallStreetBets members find Amazon stock attractive. Wall Street analysts are also bullish on the stock even as its guidance was the first quarter was below estimates. “We think a number of investor concerns around margins are being put to bed, and the next phase of turning the corner is when [gross merchandise value] starts to accelerate, which should play out mid2Q — hence we think AMZN shares have one of the best set-ups in the market in ’22,” said Barclays’ analyst Ross Sandler while raising his target price from $,800 to $4,400.

UBS, Wolfe, JPMorgan, Credit Suisse, and Canaccord Genuity also raised the stock’s target price after its earnings release. If you are looking to buy a WallStreetBets favorite stock on which even Wall Street is bullish, Amazon looks a good bet.

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4. Robinhood (NYSE: HOOD)

Robinhood and WallStreetBets have had a love-hate relationship. A lot of WallStreetBets members trade on the Robinhood platform. However, many got disenchanted with the company after it blocked trading in meme stocks.

Meanwhile, HOOD stock recently fell to the lowest level since its IPO following its fourth-quarter earnings release. 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%. Here it is worth noting that HOOD is facing tougher YoY comps in the first half of 2022. In the first half of 2021, it saw a spike in volumes amid the meme stock and dogecoin mania. However, the meme stock trade is now mostly dead and even dogecoin is not as popular among traders as it was in the first half of 2022.

WallStreetBets and Robinhood have a connect

When HOOD stock fell after the IPO, WallStreetBets members were at the forefront in buying the stock and triggering a short squeeze. WallStreetBets is again looking bullish on the stock. HOOD’s valuations look quite attractive after the crash, and many speculate that like Peloton, it could also be a takeover target.

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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 Index underperformed S&P 500 in 2021, something that you don’t see quite often.

QQQ is popular ETF on WallStreetBets

While WallStreetBets members usually discuss stocks, QQQ is among those 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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