The infamous short squeeze planned and executed by a group of activist investors, many of whom gathered on the Reddit stocks board r/wallstreetbets, defined January 2021. These fervent investors flocked into GameStop stock, one of the most shorted on the American market. Short-sellers at GameStop and particular hedge funds suffered severe losses due to the short squeeze. It increased the subreddit’s popularity as well. Due to their short interest and long-term potential, Canadian stocks like BlackBerry (TSX:BB) and Cineplex (TSX:CGX) at the time also attracted attention.
Today, I want to revisit these Reddit stocks and discuss why they might still be worth snatching up in early November.
Reddit stock that holds promise in a recovering industry
Due to the status of the physical retailing of video games, GameStop was viewed as a terrible asset. This attracted short-sellers who intended to profit significantly from the retailer’s collapse. Furthermore, all types of brick-and-mortar stores have been penalized by the COVID-19 epidemic. Not only the GameStop industry was declared dead in late 2020 and early 2021. Short sellers seeking to profit from a tumultuous sector were also drawn to traditional film stocks.
The world’s largest chain of movie theatres is AMC Entertainment. AMC was identified as a Reddit stock by activist investors as well. In fact, amid the short squeeze, both GameStop and its shares rose sharply. But it swiftly lost steam, and as November 2022 approaches, losses have been sudden and constant.
The largest movie theatre operator in Canada is Cineplex. As of November 2’s end, its shares have fallen 31% in 2022. Currently, the stock is down 34% from last year.
Despite its recent struggles, this Reddit stock warrants some optimism. Shares of Cineplex are up 1.2% month over month. Investors can expect to see its next batch of results later this month.
Two movies potentially generating a lot of traffic for this business are released over the next two months. The early half of November will see the release of Black Panther: Wakanda Forever in theatres. The long-awaited sequel to the once-highest-grossing movie of all time, Avatar: The Way of Water, is scheduled to hit theatres on December 16, 2022.
Can BlackBerry finally live up to its hype?
One Canadian may have kept an eye on the tech stock BlackBerry at some point or another. This previous Reddit stock, nevertheless, consistently disappoints. It provides access to some fascinating markets, such as cybersecurity and the automotive software industry. Furthermore, BlackBerry has secured significant contracts in these fields.
Despite this, the Waterloo-based technology company has struggled to make headway since shifting its focus from hardware to software. It will have to go beyond filling the middle ground in these markets. The price of BlackBerry has fallen 49% thus far in 2022. Share prices are down 58% from a year ago.
This tech stock trades in solid value territory relative to its industry peers. Meanwhile, it is geared up for strong revenue growth going forward. BlackBerry is still worth a bet in late 2022.