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In our top stocks for the month, the team talks through their personal favourites and what they think is hot right now.

Phil Rogers

December Pick: Roblox (NYSE:RBLX)

Roblox is not a traditional online gaming platform. Rather, it allows users to make their own games within the virtual world. This encourages higher usage of the site and also helps to form an ecosystem for the business. With metaverse stocks becoming increasingly popular, I think the Roblox fits into this category.

Earlier this month, Nike announced that it was building NikeLand in the Roblox universe, allowing avatars to go in and shop virtually to kit themselves out in branded products. If more partnerships and deals like this happen in the future, I think Roblox shares have strong potential to move higher.

When looking at Roblox shares, the price has moved around 50% higher over the course of November, to trade around $122. It’s clear that momentum is with the stock, something I think will continue.

In terms of risks, the large one I see is if the metaverse in general is just a fad that will quickly die out. In this case, there’s clear downside for Roblox.

Jesse Williamson

December Pick: Upstart Holdings (NASDAQ:UPST)

We wrote about Upstart Holdings at the beginning of September. You can read our look into the company here. The stock continued to grow a further 47% from that article. However, since UPST touched a high of $400, the price has retraced down to $200. The stock dropped 22% after earnings on November 9th.

The EPS and revenues beat expectations, but Upstart said it expects revenues in a range of $255M to $265M, and net income of $16M to $20M. That comes in below expectations, and, as a result, UPST stock dropped.

The share price now sits on support around $200, as well as that being on a weekly trend line support. The risk is low as this is a popular growth stock and many buyers will come in below $200, keeping the price up if it retests that level. I think $300 can be reclaimed in the next months.

Robert Henrik

December Pick: SSE (LSE:SSE)

SSE is a well known UK utility provider. It’s been making a large push towards renewable energy in recent years, a trend that we feel has strong momentum for the future. Be it the recent COP26 summit or growing demand from ESG investors, SSE shares should be well supported into the end of the year and beyond.

It might not have the volatility of the above options, but the share price is still up 13% over the past year. It’s a lower risk stock to add to a portfolio, one that is paying out income as well. It currently offers a dividend yield of 5.27%.

In recent results, a commitment to spend £12.5bn on renewables and similar technologies by 2026 caught my eye. Despite the risk of a break-up of divisions by Elliot Management, the stock looks appealing going forward.

AlphaPicks owns shares in Roblox and UpstartTo buy shares in these companies, register here with our preferred partner, EToro.

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