- These trending Reddit stocks have considerable growth catalysts in motion, offering healthy upside potential in May and beyond.
- AdvisorShares Pure US Cannabis ETF (MSOS): This leading cannabis ETF offers exposure to the crème de la crème of the US cannabis sector.
- Mullen Automotive (MULN): A reasonably priced electric vehicle company with many growth catalysts.
- Citius Pharmaceuticals (CTXR): The speculative biotech stock could offer solid gains across the board.
Reddit-induced trading may have been the biggest stock market story in 2021. At the height of the pandemic last year, novice investors turned to the platform and made it one of the most popular investment communities the most powerful in the world. These so-called Reddit actions continue to be popular with traders and remain on their radars for the foreseeable future.
Reddit stocks or meme stocks usually belong to market underdogs with high short ratios. Redditors are taking advantage of these actions and launching a short squeeze to take their values to new highs. Due to the massive volatility created by these stocks, investors had to take notice.
A handful of stocks were part of the trend early last year, but we saw those that didn’t necessarily fit the bill also part of the retail frenzy. That being said, let’s take a look at three Reddit stocks that offer healthy upside potential.
|MSOS||AdvisorShares Pure US Cannabis ETF||$14.77|
|MULN||Mullen Automotive, Inc.||$1.20|
|CTXR||Citius Pharmaceuticals, Inc.||$1.04|
Reddit Stocks: AdvisorShares Pure US Cannabis ETF (MSOS)
AdvisorShares Pure US Cannabis ETF (NYSEARC:MSOS) is one of the leading cannabis exchange-traded funds (ETFs). One of the best investment strategies is to own ETF stocks, which provide exposure to a wide range of stocks in a particular sector. MSOS focuses on US multistate operators, which have proven to be more resilient than Canadian cannabis businesses.
The US cannabis market isn’t legal yet, but it’s only a matter of time before it is. Support for legalization is at record highs, and if it doesn’t happen under the current Democratic regime, it’s likely to fall under the next administration. Legalization will remove several hurdles for the sector, so reports indicate a accelerating industry growth rates In the coming years.
Mullen Automotive (MULN)
Mullen Automotive (NASDAQ:MULN) is an up-and-coming electric vehicle startup that has steadily expanded its business operations through mergers and acquisitions. Lately, MULN’s stock has surged after reports suggested it will soon begin production of its electric crossover vehicle, the Mullen Five. She managed to raise significant debt to fund the development of the Mullen Five. Thus, its assets have increased significantly in recent months.
The pre-income EV business also understands the importance of solid-state batteries. The company recently describes the testing of its solid-state polymer cells, which come with a range of over 600 miles. Plus, an 18-minute quick charge can give a range of around 300 miles.
The company’s first electric vehicle can will be available to users by 2024. If the company achieves its goals and avoids the supply chain issues that typically plague electric vehicle startups, it could emerge as a contender in the space. Nevertheless, the risks remain with the MULN stock, and it presents itself as a more speculative option at present.
Reddit Stock: Citius Pharmaceuticals (CTXR)
Citius Pharmaceuticals (NASDAQ:CTXR) is a small biotech with no revenues or profits, but hopes to shake things up with its attractive drug pipeline. Investing in the company is a gamble, but 2022 could be the turning point for the company. If he can get his list of budding drugs to market, his stock could grow at an astonishing rate. Therefore, cash-strapped investors will want to bet on the stock.
Citius is focused on developing and commercializing an impressive line of critical care products, including anti-infectives in oncology, stem cell therapy, cancer and other conditions. Two of his five contestants are already in advanced testing and he has enough cash to get them across the finish line.
The stock is lightly traded but has been popular on Reddit and other social media platforms. Its management owns a large portion of the company’s stock; therefore, a liquidity risk remains. Additionally, there are also regulatory and commercial risks that weigh on CTXR stock. Nonetheless, there is a huge market for its products, especially its anti-blocking solution, which makes it a high-risk, high-reward game.
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As of the date of publication, Muslim Farooque had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.