RIVN, AI, or V: Which trending Reddit stock might offer the highest returns? – TipRanks.com

Trending stocks on the Reddit social media platform are often watched for some interesting investment ideas. A Brunswick survey conducted earlier this year revealed that 58% of institutional investors using Reddit made investment decisions based on insights into the platform. Additionally, 46% of respondents plan to use the platform more in the coming year. While several Reddit stocks have often been high-risk, high-reward ideas, some are backed by solid fundamentals and analysis. We used TipRanks’ stock comparison tool to rank Rivian (NASDAQ:RIVN), C3.ai (NYSE: AI) and Visas (NYSE:V) against each other to pick the Reddit stock that might offer the best upside.

Riviano (NASDAQ:RIVN)

Rivian’s shares have been on fire since the electric vehicle (EV) maker announced strong second-quarter delivery numbers. Rivian delivered 12,640 vehicles in the second quarter of 2023, marking a 59% increase over the first quarter of 2023 and a 183% year-over-year jump. Total production increased 49% from the first quarter to 13,992 electric vehicles. Additionally, the company reiterated its annual production forecast of 50,000 EVs.

Following the update, several analysts raised their price target for Rivian, as the solid second-quarter shipments report addressed some concerns about manufacturing and supply chain issues. Additionally, investors and the street cheered on the Amazons (NASDAQ:AMZN) announcement that it was taking delivery of 300 Rivians electric delivery vans (EDVs) in Europe. The order is part of an agreement between Amazon and Rivian to produce 100,000 EDVs.

Last week, Needham analyst Chris Pierce raised his price target for RIVN to $28 from $26 to reflect better-than-expected production and deliveries. He reiterated a Buy rating on RIVN and added the stock to his conviction list. With concerns about the production bottleneck in the rearview mirror, Pierce believes investor sentiment should reflect increased confidence in the Rivians R2 SUV given a significantly larger total addressable market.

On Monday, Barclays analyst Dan Levy raised his price target for Rivian to $30 from $22 and reiterated a Buy rating. Levy expects Rivian to beat second-quarter estimates, saying stronger-than-expected Q2 deliveries will add fixed cost absorption benefits to the gross margin result, along with continued operational self-help.

Additionally, Levy expects the rally in RIVN shares to continue, as investors become increasingly comfortable with RIVN’s path to breakeven gains.

Is RIVN a buy or a sale?

Wall Street is cautiously optimistic about Rivian, with a moderate buy consensus rating based on 10 buys, five holds and one sell. The average price target of $23.50 implies about 8% downside. Shares are up 38% so far in 2023.

C3.ai (NYSE:AI)

Shares of enterprise artificial intelligence (AI) application software company C3.ai have skyrocketed 265% since the beginning of the year, thanks to the spike in interest in generative AI following the rapid adoption of OpenAIs ChatGPT. At investor day held on June 22, the company said its qualifying pipeline doubled from 297 opportunities to 614 opportunities due to growing interest in enterprise AI.

However, management’s commentary at investor day failed to impress investors. There are concerns about the company’s deal pipeline, especially whether these pilots are providing material revenue.

Following the investor day event, Deutsche Bank analyst Brad Zelnick, who has a Sell rating on the C3.ai stock, noted that the event left much to be desired, as no data details were provided. financials and the company has provided limited updates on its operations. Zelnick added that the event failed to address his skepticism about the differentiation of the C3.ai platform and its ability to meet its ever-evolving financial goals.

In reaction to the Investor Day event, DA Davidson analyst Gil Luria maintained a Hold rating on AI stock and a $30 price target. Luria thinks that while incremental data points and product insights are been useful, the tailwinds of generative AI already appear to be priced into the headline.

Is C3.ai a good stock to buy?

Wall Street is sidelined on C3.ai stock, with a Hold consensus rating based on two buys, six holds, and three sells. The average price target of $27.40 implies a possible downside of about 33%.

Visa (NYSE:V)

Payments giant Visa is present in over 200 countries, with over 4.2 billion cards in circulation. Despite challenging macroeconomic conditions, the company outperformed the market in its fiscal second quarter (ended March 31, 2023), with adjusted EPS rising 17% to $2.09 on revenue growth of 11%. .

The company processed 50.1 billion transactions in the March quarter, marking a 12% year-over-year increase. Visa performance in the quarter was driven by strong travel demand.

To further strengthen its platform, the company recently announced the acquisition of Brazilian payments and banking platform Pismo for $1 billion. The acquisition will help Visa provide core banking and issuer processing capabilities on debit, prepaid, credit and commercial cards for institutional financial and fintech customers through cloud-native APIs.

The cloud-based Pismo acquisition will also enable Visa to offer connectivity for emerging payment platforms, such as Pix (the Central Bank of Brazil’s instant payment platform) for customers of financial institutions.

Ahead of Visa’s fiscal third-quarter results later this month, Moffett-Nathanson analyst Lisa Ellis raised the price target for Visa to $320 from $290 and reaffirmed a Buy rating on the stock on Friday. The analyst also raised the price target for Visa’s closest rival Mastercard (NYSE: MA) to $490 from $460 and maintained a Buy rating.

Ellis believes both of these stocks offer investors an unusually attractive entry point. He noted that business momentum is strong, and both payments giants have delivered nine consecutive quarters of revenue and EPS beats. Ellis also believes that Visa and Mastercard are not facing any new or unusual risks or threats of disruption that could impact their valuation.

What is the target price for Visa shares?

Visa earns a Strong Buy consensus rating based on 19 buys and one hold. The average price target of $272.55 implies more than 15% upside. Visa shares are up nearly 15% year-to-date.

Conclusion

While Rivian, C3.Ai and Visa are buzzing on the Reddit platform, Wall Street is very optimistic about Visa. Ongoing macroeconomic pressures could affect Visa’s performance in the near term. However, the company’s long-term growth potential looks attractive thanks to its large network and continued shift to digital payments.

Disclosure

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