Reddit’s WallStreetBets has a new favorite stock

GameStop and AMC are trading at levels no one could have imagined a year ago. Now, Reddit’s r/WallStreetBets community is looking for the next company whose stock is set to explode—and seems to have settled on Blackberry.

The company behind the once iconic line of pagers and smartphones has seen its shares increase 137% year to date. That’s nothing compared to the 1,472% increase in GameStop and the 2,705% bump for AMC, but it’s the biggest surge the company has seen in two years. And, judging by chatter on r/WallStreetBets, interest is growing.

A look at the subreddit Monday finds seven of the top 20 posts are dedicated solely to Blackberry. (Four others are focused on praising Clover Health Investments.) The stock is currently trading in the $15-$16 range, but the most enthusiastic investors are hoping to see it hit $50.

“Don’t stop, BBelieving!!” encouraged user TehlorO.

Meanwhile, user Substantial_Diver_34 showed a screenshot of what he says is his portfolio that is 100% committed to Blackberry, with over 6,400 shares. It was, at the time of the shot, down $14,000. The post is entitled “What have I done?” Other users gave nothing but encouragement.

“I’ll tell you what you’ve done: You’ve guaranteed your place amongst the millionares,” wrote kingandr3, while Firesice offered “You put in a winning bid…just needs a little time.”

WSB bulls say Blackberry has grown from being a phone company to a cybersecurity firm that has deals with Amazon and others and could be well positioned to take a position in the electric vehicle marketspace.

Analysts aren’t as sure. Four firms currently have “Sell” ratings on the company, with only one suggesting investors buy.

Of course, the r/WallStreetBets effect often defies the logic of analysts. AMC and GameStop were floundering a year ago. Now, their stock prices and market caps have increased so much in recent months that they could join the Russell 1000 by the end of the month.

Our mission to make business better is fueled by readers like you. To enjoy unlimited access to our journalism, subscribe today.

Read More

CryptocurrencyInvestingBanksReal Estate