Subreddit WallStreetBets took the investing world by storm last year, with its members, who are largely retail investors, betting on heavily shorted companies and squeezing out short-selling institutional investors.
The forum had garnered attention worldwide after triggering skyrocketing rallies of GameStop Corp.’s (GME) and AMC Entertainment Holdings, Inc.’s (AMC) stock. Although the forum is known for taking bets on heavily shorted companies, it also discusses and bets on companies with sound fundamentals and good growth prospects.
Peloton Interactive, Inc. (PTON), Virgin Galactic Holdings, Inc. (SPCE), and Canoo Inc. (GOEV) are being discussed frequently on the forum, and Wall Street analysts expect the names to gain between 90% and 175% in price, respectively, in the near term.
Peloton Interactive, Inc. (PTON)
New York City-based PTON provides a connected, technology-enabled interactive fitness platform. The company offers services that include instructor-led boutique classes for its customers. Also, its product portfolio includes Peloton Bike, Peloton Bike+, Tread and Tread+, bike mat, heart rate monitor, and dumbbells. It has received 59 mentions in the WSBs forum over the past 24 hours.
On Nov. 9, 2021, PTON announced its first connected strength product, the Peloton Guide. The Guide is an AI-enabled device that provides members instant access to a suite of expert instructors and other PTON content libraries over a television. PTON’s Co-founder and Chief Product Officer Tom Cortese said, “Peloton Guide demystifies strength training to create a more engaging experience that will help Members stay motivated.”
PTON’s total revenue for its first fiscal quarter, ended Sept. 30, 2021, increased 6.2% year-over-year to $805.20 million. The company’s connected fitness subscription increased 87% year-over-year to 2.49 million, while its connected fitness subscription workouts came in at 120.50 million, representing a 55% increase year-over-year.
Analysts expect PTON’s EPS and revenue for its fiscal 2023 to increase 69.5% and 24.4%, respectively, year-over-year to $0.87 and $5.61 billion Over the past year, the stock has lost 89.9% in price to close the last trading session at $27.06. However, Wall Street analysts expect the stock to hit $52.17 in the near term, indicating a potential 92.8% upside..
Virgin Galactic Holdings, Inc. (SPCE)
Headquartered in Las Cruces, New Mexico, SPCE is an aerospace company that is focused on developing, manufacturing, and operating spaceships and related technologies to conduct commercial human spaceflight and fly commercial research and development payloads into space. It has received 16 mentions on WSBs forum over the past 24 hours.
On Sept. 2, 2021, SPCE announced its ‘Unity 23’ test flight, its first commercial human-tended research mission. The flight will carry paying crew members from the Italian Air Force and the National Research Council. The mission seeks to evaluate and measure the human body’s transitional phase from gravity to microgravity. The mission seeks to produce insights relevant to current and future spaceflight systems and technologies.
For the nine months ended Sept. 30, 2021, SPCE’s revenue increased 1,224% year-over-year to $3.15 million, while the company’s gross profit increased 4,332.3% year-over-year to $2.88 million. SPCE’s net loss for the third quarter, ended September 30, 2021, decreased 47.4% year-over-year to $48.36 million.
For the quarter ending March 31, 2022, SPCE’s EPS is expected to increase 41.8% year-over-year to $0.32. Its revenue for its fiscal 2021 is expected to increase 1,227.7% year-over-year to $3.16 million. Over the past six months, the stock has declined 74.6% in price to close the last trading session at $8.47. However, Wall Street analysts expect the stock to hit $23.29 in the near term, indicating a potential 175% upside..
Canoo Inc. (GOEV)
GOEV in Torrance, Calif., is a mobility technology company designs and develops electric vehicles (EVs). The company has created a modular electric platform that is purpose-built to deliver maximum vehicle interior space and is customizable across all owners in a vehicle lifecycle. Its product range includes MPDV1, MPDV2, and Canoo pickup. It has received one mention in the WSBs forum over the past 24 hours.
On Sept. 30, 2021, GOEV announced a partnership with AVL to develop, test, and validate Advanced Driver Assistance Systems (ADAS) software for GOEV’s Lifestyle Vehicle. GOEV will own the ADAS software to ensure security, safety, compliance, and compatibility across vehicles.
GOEV’s total liabilities for the nine months ended Sept. 30, 2021, came in at $153.07 million, compared to $188.22 million for its fiscal year ended Dec. 31, 2020. The company’s cash, cash equivalents, and restricted cash for nine months ended Sept. 30, 2021, increased 178.7% year-over-year to $416.31 million.
Over the past year, the stock has declined 67.6% in price to close the last trading session at $5.54. However, Wall Street analysts expect the stock to hit $14 in the near term, indicating a potential 152.7% upside.
Want More Great Investing Ideas?
PTON shares were trading at $27.61 per share on Monday morning, up $0.55 (+2.03%). Year-to-date, PTON has declined -22.79%, versus a -10.12% rise in the benchmark S&P 500 index during the same period.
About the Author: Dipanjan Banchur
Since he was in grade school, Dipanjan was interested in the stock market. This led to him obtaining a master’s degree in Finance and Accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging trends in financial markets. More...
More Resources for the Stocks in this Article
|Ticker||POWR Rating||Industry Rank||Rank in Industry|
|PTON||Get Rating||Get Rating||Get Rating|
|SPCE||Get Rating||Get Rating||Get Rating|
|GOEV||Get Rating||Get Rating||Get Rating|