3 Reddit FOMO Stocks That Are Actually Worth Buying

Stocks to buy

There are many investors who may be looking at Reddit (NYSE:RDDT) stocks worth buying. After all, many of the stocks discussed on that social media platform have surged during recent spikes. However, it’s also true that many such companies are not good long-term bets. Of course, you will find level-headed subreddits, but r/WallStreetBets has been all the rage, and most people now associate Reddit stocks with high-risk short-squeeze stocks.

That’s not the full story, of course. Reddit is a huge platform, and its users discuss all sorts of assets on there. Even on r/WallStreetBets, you’ll find plenty of buzz about stocks that have healthy financials and make good long-term investments. It’s worth paying attention to this buzz since Reddit’s retail herd has shown itself to be very formidable.

Here are three such stocks that I think are worth buying. Data about Reddit mentions come courtesy of Ape Wisdom.

Micron Technology (MU)

Source: Piotr Swat / Shutterstock.com

Micron Technology (NASDAQ:MU) produces memory and storage solutions that are powering the AI and data revolution. The company has been one of the biggest winners from surging AI chip demand, with the stock delivering sizzling 113% gains over the past year.

Micron’s Q3 results beat expectations across the board, with revenue surging 81.5% year-over-year to $6.81 billion. The company is seeing impressive pricing power, as the memory supply-demand balance rapidly improves. This pricing power should persist well into 2025, thanks to exploding data center demand for AI memory chips.

The company also had 50%+ sequential growth in data center sales and an improving mix of high-margin products like HBM memory. However, it’s important to note that near-term demand for PCs and smartphones remains constrained. Additionally, Micron’s nosebleed valuation also bears monitoring. But for long-term investors, I believe MU stock might be worth buying at current levels.

Grindr (GRND)

Source: mama_mia / Shutterstock.com

Grindr (NYSE:GRND) operates a popular location-based social networking app for the LGBTQ+ community. I’m quite bullish on GRND stock as a long-term bet, given the company’s exceptional past earnings and strong growth outlook. These factors have certainly been key contributors to the stock’s 125% surge over the past year. It’s no wonder Reddit is buzzing about this company.

In Q1, Grindr delivered outstanding revenue growth and strong adjusted EBITDA, with management expressing confidence in their full-year outlook. What really caught my eye is that Grindr increased its 2024 revenue growth guidance from at least 23% to now at least 25%. They also reiterated adjusted EBITDA guidance of at least 40% for 2024.

Looking further out, Grindr expects 20%-25% annual revenue growth through 2027, with margins between 39%-42%. These are impressive projections that I believe are achievable given Grindr’s strong brand and the accelerating societal shifts driving massive expansion in its addressable market, both in the U.S. and especially internationally.

Intel (INTC)

Source: Kobby Dagan / Shutterstock.com

Intel (NASDAQ:INTC) is a leading semiconductor chip maker, but the stock hasn’t seen too much momentum of late from the recent sector-wide boom. In fact, Intel has been losing ground to rivals like Nvidia (NASDAQ:NVDA) and AMD (NASDAQ:AMD). That said, Intel’s Q1 results showed the company is back to growing sales again, and analysts expect its earnings per share to strengthen meaningfully this year and quadruple from 2024 to 2027. This is a far better position than Intel was in during late 2022. However, the stock is trading at a historically high earnings premium, so solid gains could take more time to fully materialize as earnings catch up.

Intel remains a key player in the lucrative commercial CPU market and continues making steady progress on its AI accelerator chips. Additionally, the company is seeing momentum build in key growth segments like enterprise PCs, data centers, and automotive.

With Intel projecting sequential revenue growth to ramp up over the coming quarters and into 2025, this current entry point looks compelling for patient investors. The company’s 1.6% dividend yield provides an added bonus as the chipmaker executes its multi-year turnaround plan.

On the date of publication, Omor Ibne Ehsan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on LinkedIn.

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