The Reddit forum WallStreetBets garnered worldwide attention last year thanks to its short squeeze attempts on heavily shorted stocks GameStop Corp. (GME) and AMC Entertainment Holdings, Inc. (AMC). But in addition to targeting fundamentally poor stocks with a high level of short interest, the community also discusses and bets on companies with sound fundamentals and growth attributes.
Fundamentally strong companies Airbnb, Inc. (ABNB) in San Francisco, and Upstart Holdings, Inc. (UPST) in San Mateo, Calif., are being discussed on the forum after they beat their earnings estimates. ABNB’s earnings per share came in at 8 cents, beating the 3 cents estimated by the Refinitiv survey of analysts. It also topped the $1.46 billion revenue estimate, posting a $1.53 billion estimate. The earnings surprise came on the back of robust travel demand. UPST beat the FactSet revenue consensus of $262.90 million for the fourth quarter, ended Dec. 31, 2022, after reporting $304.84 million in revenue.
