Best WallStreetBets Stocks to Buy February Week 4 Roundup

As US stock markets have plunged in 2022, so have WallStreetBets stocks. In fact, the sell-off has been quite severe in speculative stocks and growth names that are generally popular on WallStreetBets.

US stock markets are now looking to shrug off the crisis between Russia and Ukraine even as rate hike fears would come into centerstage a few days from now. What are the five best WallStreetBets stocks that you can buy in the fourth week of February?

1. Palantir (NYSE: PLTR)

Palantir was among the favorite WallStreetBets stocks in the first quarter of 2021 when the Reddit mania was at its peak. WallStreetBets members pumped Palantir stock and it went on to hit its all-time highs. However, like fellow growth names, PLTR stock has also tumbled. Palantir stock plunged after reporting mixed earnings for the fourth quarter. While its revenues of $433 million were ahead of estimates, its adjusted profits were half of what analysts were expecting. The company’s first-quarter revenue guidance was also better than expected and it maintained the guidance of 30% revenue growth CAGR until 2025.

Most WallStreetBets members are bullish on Palantir

While WallStreetBets members are bullish on Palantir stock, Wall Street has a differing opinion. Of the eight analysts covering the stock, only one has a buy rating while three have a hold rating. The remaining three analysts have a hold rating on Palantir stock. It has an average target price of $13.17 which is a premium of 14.8% over current prices.

Palantir has been out of favor with investors amid the general pessimism towards growth names, especially those which look overvalued based on traditional valuation multiples. However, given its strong moat in the data analytics business and the growing partnerships, PLTR is among the best WallStreetBets stock that you can buy now.

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2. Coinbase (NYSE: COIN)

Coinbase stock has also been in a freefall and the selloff continued last week after it released its fourth-quarter 2021 earnings. It reported revenues of $2.49 billion in the quarter. To put that in perspective, it reported net revenues of $1.23 billion in the third quarter and $497 million in the fourth quarter of 2020. The company’s sales were way ahead of the $1.94 billion that analysts were expecting.

Its net income also more than doubled over the third quarter to $840 million. Coinbase reported an adjusted EPS of $3.32 which was again way above the $1.85 that analysts were expecting.

However, it was the company’s guidance that spooked investors. Coinbase said that it expects its retail trading volumes and retail MTUs to fall on a sequential basis in the first quarter. It blamed the fall in crypto prices and volatility in the quarter for the expected decline in volumes. However, it said, “This is not unusual, as we have seen historical crypto market patterns where all-time high periods have been followed by softer periods.”

For the full year, 2022, Coinbase provided very wide guidance. It expects the annual average retail MTUs to be between 5-15 million.

WallStreetBets likes COIN stock despite tepid guidance

While WallStreetBets members have a strict policy of not talking about cryptos and other digital assets, COIN has regularly featured among the top trending names on the group, just as it is now. WallStreetBets members are bullish on COIN stock despite the tepid guidance.

Coinbase stock has been under pressure amid the broader market crash. The sell-off in cryptocurrencies hasn’t helped matters either for COIN stock. However, if you believe in digital assets and see them as the future, Coinbase is one stock that should find a place in your portfolio.

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3. Block (NYSE: SQ)

Square changed its name to Block to reflect the growing importance of blockchain for the company. The company has also invested in bitcoins and sees cryptos as a key growth driver. Also, Jack Dorsey has quit as Twitter CEO which will help him focus on Block. After Dorsey quit Twitter, Bank of America upgraded Block stock. The stock soared yesterday after it reported a spectacular earnings beat.

Block reported revenues of $4.42 billion in the quarter which were 62% higher than the corresponding period last year and were ahead of the $4.04 billion that analysts were expecting. Its adjusted EPS of 27 cents was also ahead of the 23 cents that analysts were expecting.

WallStreetBets members are bullish on Block after the earnings beat

WallStreetBets members are bullish on Block stock after the earnings beat. The company also provided better than expected outlook. Wall Street analysts were also impressed with the company’s performance, especially the Cash App.

Jefferies analyst Trevor Williams said, “Despite consternation heading in, Cash App gross profit of $518 million, up 37% year-over-year, was 2% ahead of the street.” Susquehanna analyst James Friedman also echoed similar views and said that the Cash App’s performance was better than expected. Friedman added, “Fears that Cash App users would not outlast stimulus checks seem to have been overblown as user and engagement metrics look strong. Gross profit per monthly active grew 13% year-over-year to $47 in the fourth quarter.”

All said, Block remains one of the best fintech stocks, especially after the massive fall from the peaks.

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4. Tesla (NYSE: TSLA)

Hardly a week passes when Tesla is not among the top trending names on WallStreetBets. While Wall Street has always been divided on Tesla and Elon Musk, retail traders including WallStreetBets members have backed the company. Tesla stock has also come off its peaks amid the crash in markets. Tesla is in a bear market currently. However, volatility is now new for Tesla, and it has always been a high beta name.

WallStreetBets loves Tesla

WallStreetBets members like Tesla stock. Tesla received another bullish recommendation this week after Daiwa analyst Jairam Nathan upgraded it from neutral to outperform amid the rising energy prices. Nathan said, “Tesla’s ability to export out of cost-efficient China and history of better managing chip shortages in 2021 could strengthen its competitive position under the current Russia/Ukraine situation.” He added, “At the same time, higher oil prices and potential scenario of fuel shortages, especially in Europe, could accelerate the shift to EVs.”

Tesla is among the biggest beneficiaries of the green energy transition which is gaining steam. It is among the best WallStreetBets stock to buy especially if you are a green energy enthusiast.

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5. Nvidia (NYSE: NVDA)

Nvidia is also among the top trending stocks on WallStreetBets this week. The company released its fiscal fourth-quarter earnings earlier this month. While the performance was better than expected and the guidance was also higher than what analysts had forecast, NVDA stock fell after the earnings. This left many Wall Street analysts as well as WallStreetBets members baffled.

WallStreetBets was baffled after Nvidia’s earnings

Many Wall Street analysts raised Nvidia’s target price after the earnings release. The stock is a play on multiple themes ranging from 5G, metaverse, autonomous cars, and cloud adoption. After the massive fall from the peaks, Nvidia’s valuations have also come down and it is among the best WallStreetBets stocks that you can buy now.

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