Not all WallStreetBets (WSB) stocks possess fundamental strength, with many of them advancing in price based solely on retail traders’ interest in them. Despite this, indeed perhaps in-part because of this, Wall Street analysts expect low-priced WSB stocks ContextLogic (WISH) and SmileDirectClub (NASDAQ:SDC) to surge more than 39% in price in the near term. So, we think it could be worth adding these stocks to your watchlist.While retail investors play an essential role in the stock market, institutional investors usually dominate this space. However, the 11 million-member subreddit WallStreetBets (WSB) surprised everyone by dominating the investment performance of GameStop Corp .'s (NYSE:GME) and AMC Entertainment (NYSE:AMC) Holdings, Inc.’s (AMC) shares earlier this year, causing massive short squeezes in both.
According to a Digital Market News report, amateur investors now account for approximately 23% of all equity trading in the United States, compared to just 10% in 2019. And following the GME and AMC short squeezes, several other stocks skyrocketed in price on the power of retail investors. While not all WSB stocks possess fundamental strength, they do gain based on retail traders’ interest in them.
WallStreetBets stocks ContextLogic Inc. (WISH) and SmileDirectClub, Inc. (SDC), which are currently trading at below $10 per share, could be good additions to one’s watchlist. Wall Street analysts expect these two stocks to rally by more than 39% in the coming months.