Jul 19 2021 (Mon)
There are over 15 million retail investors on Reddit scattered across several investing subreddits. From r/wallstreetbets, with GameStop being he most notable, to r/PennyStocks, focused on popular reddit penny stocks. Trends, insights, and great stock analyses within subreddits provide a powerful source of information for retail investors. Utradea developed the Reddit Dashboard to make it easy for investors to spot trends and insights and discover new investment opportunities. Utradea believes investors can find great stocks to trade on Reddit. We are looking at the top 3 most popular stocks on reddit for the first half of July, 2021
Over the first half of July AMC has maintained the number 1 position on Reddit as the most popular stock. It averaged the highest number of posts and upvotes on a daily basis. The overall sentiment for AMC was positive, despite the drop in price over the last 2 weeks. The general sentiment, and support, around AMC is very strong in the Reddit community and is arguably now the most popular stock on Reddit
AMC Stock price closed at $54.22 and trading volume of 57 million on July 1st, 2021. On July 15th, 2021 AMC closed at $36.00 and had a trading volume of 200 million, about 4x greater than the 1st of the month.
I’m sure many of you are aware of the GameStop excitement on Reddit so there is no need to dive into the history. What is interesting is that GME remains one of the most popular stocks on Reddit, which isn’t surprising, with general sentiment and support being stronger than ever.
Over the first half of July GME has maintained the number 2 position on Reddit for the most popular stock with the highest number of posts and upvotes daily. It is interesting to note that GameStop is typically receives twice the number of comments per post when compared to other stocks. For example, on July 8th, there was 39 AMC posts and 33 GME posts, but the total number of comments for GME was around 10,000 vs AMC’s 9,000. This would indicate a more engaged following for GameStop on Reddit
GME Stock price closed at $204.36 and trading volume of 2.7 million on July 1st, 2021. On July 15th, 2021 GME closed at $166.82 and had a trading volume of 4.2 million. The trading volume with GME is significantly less than AMC over the month of July. When compared to some of the peak trading volume in January 20201, GameStop trading volume was around 177 million.
Virgin Galactic Holdings, Inc., an integrated aerospace company, develops human spaceflight for private individuals and researchers in the United States. It also manufactures air and space vehicles.
July 11th Richard Branson completed a successful flight in space, and the stock price dropped significantly over the next few days. This drop was likely due to the announcement of SPCE planning to raise $500 million in capital.
Over the first half of July SPCE has maintained the number 3 position on Reddit for the most popular stock, with the highest number of posts and upvotes daily. Leading up to the space flight we saw an increase in the number of posts and comments across Reddit. This correlated with the increase in stock price leading up to the test flight on the 11th of July. On July 4th, Virgin Galactic was the most popular Stock on Reddit, with most of the comments and posts discussing the highly anticipated flight.
SPCE stock price closed at $43.13 and a trading volume of 27 million. On July 15th, 2021 SPCE closed at $31.74 with a trading volume of 63 million. There were two significant peaks in trading volume over this time, both correlating with stock price drops and indicating a sell off. In the case of Virgin Galactic, it seemed to be a case of buy the rumour and sell the news.
All three of these stocks have dropped significantly since early July, reaching a low for the month. From a macro perspective markets have been shaky and with a broad sell-off for most of July 2021. It is interesting to see the few price increases over this time period correlate with increased popularity on Reddit. With Virgin Galactic, you could have seen the trend in late June, and early July to pick up on the positive gain leading up to the space flight. For now, I would keep an eye on AMC, GME, and SPCE to see when trends start to move in the right direction for a strong entry point.
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