The Reddit community WallStreetBets is synonymous with the meme stock movement. A distinguishing feature of this online community is its members' preference for stocks that have a high short-selling risk. The community's founder, Jaime Rogozinski, has said his goal was to build a community "for people to talk about high-risk trades in an unapologetic way for people to make some short-term money with disposable income." 

This strategy achieved national prominence in 2021 with the explosive short squeezes on stocks like GameStop Corp. (NYSE: GME) and AMC Entertainment Holdings Inc. (NYSE: AMC). However, this strategy does not suit every investor. 

That said, not all WallStreetBets stocks are high-risk stocks. In fact, Tesla Inc. (NASDAQ: TSLA) and Nvidia Corp. (NASDAQ: NVDA) are two of the most popular stocks in the community based on the number of member posts in the past few months.  

The bottom line is that even if you never watch a live stream from someone with the handle “Roaring Kitty,” you may want to keep an eye on the stocks this community is watching. Here are three that look like solid stocks to own.  

C3.ai May Be Turning into Less of a Heavy Lift 

C3.ai (NYSE: AI) helps organizations develop and deploy AI software solutions. The company's strength lies in leveraging an organization’s data to perform predictive analysis using pre-built AI models for industry-specific solutions.

While that may be a tantalizing premise, it hasn’t been reflected in the AI stock price. Like many smaller artificial intelligence stocks, it fell victim to not being Nvidia. When investors soured on the idea of an imminent interest rate cut, small, unprofitable companies quickly got sold off. That was particularly true of companies without strong institutional backing. For example, the AI stock price was cut by nearly 50%. 

But in the last three months, retail investors have jumped in, boosted by a strong earnings report confirming the company’s profitability. As of June 11, 2024, institutions own just 38.9% of the stock’s float, but its strong movement suggests that it may be heading higher. If so, AI stock will start to look very attractive.  

CrowdStrike Will Soon Be Part of the S&P 500 

Every three months or so, the S&P 500 rebalances the stocks that make up its underlying index. On June 7, 2024, the cybersecurity company CrowdStrike Holdings Inc. (NASDAQ: CRWD) was named one of the newest additions to the S&P 500 index. It will begin trading as part of the index on June 24, 2024. 

For some companies, inclusion in the index generates institutional interest from fund managers whose funds track stocks included in the index. That may not be as significant for CrowdStrike, which already has 71% institutional ownership. However, in a competitive sector like cybersecurity, receiving this distinction can separate CRWD stock from a crowded field.  

It’s also significant to note that CrowdStrike will enter the index in the first quarter it was eligible. This recognition may confirm that investors need to keep bidding up a stock that’s up 150% in the past 12 months and 46.7% in 2024.  

Lululemon Is Giving Investors a Profitable Pullback 

So far, in 2024, Lululemon Athletica Inc. (NASDAQ: LULU) has delivered two earnings reports. In both cases, it not only beat analysts’ estimates for revenue and earnings but also posted numbers that were higher than the prior year. 

You wouldn’t know that by looking at LULU stock, which is down 37.9% in 2024. That’s taken away all of the stock's 12-month gains and has it trading near its 52-week low.  

In the company’s fourth quarter 2023 earnings report in March, management warned of lower earnings as its consumer base fell under pressure. That wasn’t the case in the first quarter of 2024, and it’s not reflected in the company’s guidance.  

The culprit for the moment is short interest, which spiked higher in the fourth quarter of 2023. While it’s down significantly, it’s still at elevated levels. But with analysts forecasting a 10% earnings upside, it would seem this growth stock could be a good buy for value-hunting investors.