Stocks to buy

3 Reddit-Fueled Stocks Ready to Rally Again

Reddit stocks continue to prove their relevance. They recently kicked off another major retail trading rally. The Reddit page, WallStreetBets, attracting north of 15.6 million followers, has become a major influencer for high-stakes opportunities. Hence, Reddit is now an unavoidable force, playing a critical role in moving stocks.

If WallStreetBets zeroes in on a particular stock, it more often than not leads to a buying frenzy, propelling share prices to new heights. It is important to understand that not all Reddit stocks are created equal. That said, three stocks are buzzing on WallStreetBets, potentially offering robust gains ahead.

Microsoft (MSFT)

Wide angle view of a Microsoft sign at the headquarters for personal computer and cloud computing company, with office building in the background.. MSFT stock

Source: VDB Photos / Shutterstock.com

Microsoft (NASDAQ:MSFT) is one of the biggest beneficiaries of the AI boom. The company successfully layered OpenAI’s generative AI technology into its timeless software suite. While Microsoft has long been a frontrunner among top tech stocks, generative AI has helped it leapfrog its competition. Hence, it has established itself as a leader in AI software, delighting investors and users alike.

Moreover, its cloud-computing arm, in particular, is now turbocharged with AI, serving as another major growth engine. Its most recent quarter showed its intelligent cloud business, including Azure and Windows servers, shot up 21% on a year-over-year basis. Additionally, Azure alone saw a major significant 31% YOY bump, much of which was attributed to its AI capabilities.

Though we’re only at the dawn of AI’s capabilities, the company is poised to reap substantial long-term benefits. This cautious yet forward-thinking approach underscores the firm’s commitment to leading the AI revolution. Therefore, despite its monumental run-up in value last year, analysts expect MSFT to continue adding new chapters to its illustrious growth story.

Lululemon (LULU)

Lululemon storefront in a mall. People shop inside the store among the clothes. LULU stock.

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Lululemon (NASDAQ:LULU) is a forerunner in the athletic apparel space, known for its high-quality yoga leggings. Its strategic focus on yoga wear has enabled it to build a robust foundation for long-term expansion. Moreover, with the brand evolving, it has broadened its offerings to cover a variety of fitness and lifestyle categories, including running, training and even casual wear. Its diversification demonstrates the brand’s agility and commitment to adding greater depth to its product line.

Recent trends, though, have weighed down the athleisure segment’s prospects. Also, analysts are skeptical about Lululemon’s competitive positioning amidst shifting consumer tastes and spending habits. Despite the validity of those concerns, the firm’s operational results have held up well as it continues to post double-digit top and bottom-line growth. Its profitability metrics are a peach, attracting a perfect 10/10 rating from Gurufucus.

Wall Street’s consensus estimates also point to a healthy 40% upside from current prices, assigning LULU stock a ‘moderate buy’ rating.

Super Micro Computer (SMCI)

Smartphone with webpage of US company Super Micro Computer Inc. (Supermicro) in front of business logo. Focus on top-left of phone display. Unmodified photo. SMCI stock

Source: T. Schneider / Shutterstock.com

Super Micro Computer (NASDAQ:SMCI) continues to dominate the tech world, seamlessly pairing with the top AI chipmakers, including Nvidia (NASDAQ:NVDA) and AMD (NASDAQ:AMD), among others. Hence, its servers are positioned at the cusp of cutting-edge AI and cloud computing workloads.

Recent results have been remarkable, with revenues tripling on demand for AI servers in its most recent quarter. Revenues shot up a staggering 200% on a YOY basis, reaching a whopping $3.85 billion. Also, its EPS was at an eye-catching $6.65, beating estimates by $1.08. These metrics underscore a strong growth pattern supported by strategic partnerships and a solid product lineup.

Additionally, with a record-breaking backlog, the company is strategically positioned to leverage price increases and tech upgrades. This could propel its revenue growth even further this year. Moreover, as the tech landscape continues to evolve, Super Micro will be a key needle-mover in the proliferation of data centers and cloud infrastructure.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

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