107.9FM NYJ/LA

Translate This Page

4 Robinhood Stocks Investors Can't Get Enough Of

Posted by James Brumley on Saturday, December 18, 2021 Under: 848FINACE

Do you trust other investors enough to trade on their collective wisdom? If you don't, it's understandable. After all, crowds have a knack for getting overly excited and then suddenly swinging in the other direction without warning. You're often better off doing your own thing.

Still, sometimes the masses do get it right.

That's what makes the current list of the positions most commonly held by clients of brokerage firm Robinhood Markets (NASDAQ: HOOD) at least worth a look. Here's a rundown of four of the most familiar names the broker's customers have been buying of late.

1. Nio

For years, investors have been on the hunt for the "next Tesla" now that Tesla has mainstreamed the idea of electric vehicles. China's Nio (NYSE: NIO) may well be the one.

Nio has a lot of work to do before catching up with Elon Musk's iconic endeavor. The company delivered 24,439 battery-powered vehicles in the three-month period ending in September, a small fraction of the 241,300 automobiles Tesla delivered during the same quarter.

A person surrounded by computer screens, looking at a smartphone.
© Getty ImagesA person surrounded by computer screens, looking at a smartphone.

Look at the growth trajectory, though. Despite many global supply-chain challenges, Nio's third-quarter deliveries doubled on a year-over-year basis. Given the combination of this growth and ever-increasing support for electric vehicles, it's no wonder the speculative crowd that uses Robinhood's trading platform is falling in love with the company.

2. Sundial Growers

Sundial Growers (NASDAQ: SNDL) isn't exactly a household name, but for fans of cannabis stocks (and believers in cannabis' future), Sundial is familiar. The company grows and sells cannabis in a variety of marketable forms. It also offers financing options to related companies, and when the opportunity is right, it makes related investments.

The stock has been an especially poor performer recently. Shares of Sundial now sit 95% below their 2019 IPO price, having fallen 40% from last month's high made by another now-failed rebound effort. The stock is also just a few cents and a few bad days away from reaching new 52-week lows as well. However, none of that is deterring some speculators, who remain convinced the cannabis industry's future is a bright and underestimated one. If they are right, Sundial could enjoy a fantastic rebound from today's beaten-down share prices.

3. Ford


Video: Webull CEO on how his trading platform differs from Robinhood (CNBC)

Current Time 0:34
Duration 3:22
Loaded41.60%
0

Sundial Growers may not be a familiar name, but Ford Motor Company (NYSE: F) certainly is. Despite its centennial history and old-school industry, the bargain-hunting crowd at Robinhood can't get enough of the struggling carmaker.

Of course, these calculated bets on Ford aren't completely crazy. While it's a victim of the chip shortage and undeniably behind on the electric vehicle (EV) front, the deep-pocketed company is quickly positioning itself for the battery-powered future. The company says it will double its current annual EV production pace to 600,000 units by 2023, moving toward what looks like an eventual end to the manufacture of combustion-powered vehicles sometime in the 2030s. The company is supporting this paradigm shift by operating North America's largest public charging network, which also continues to expand.

While Ford's business evolution is arguably the biggest reason so many active investors are scooping up the stock, the stock's valuation of less than 10 times next year's projected earnings bolsters the bullish argument. Ford is a safe bet at these modest prices.

4. Robinhood Markets

Finally, though most of Robinhood's clients use the app's trading platform for no-cost stock trading, Robinhood Markets itself is proving one of its customers' most popular picks.

The world is changing, and stock brokerages are no exception. Investors are losing interest in paying a person to steer their portfolio and are also unwilling to pay any trading commission when they don't have to. The fact that Robinhood makes its no-cost trading possible via a simple-to-use smartphone app only further meets people where they are, both figuratively and literally -- phone-in-hand and in a hurry. Last quarter's revenue grew 35% year over year, buoyed by a 76% increase in the number of users accessing the app at least once per month. Total assets in its custody improved 115% year over year.

The company isn't profitable yet and is unlikely to work its way out of the red anytime soon. Investors love the trajectory it's on, though, and that's enough for now.

Keep it in perspective

Take this list of popular investments among Robinhood's customers with a grain of salt. Given the nature of the company's approach to providing brokerage services, it's not a stretch to suggest Robinhood appeals to a more speculative crowd. It's also a magnet for newer and smaller investors who may be prone to overly aggressive stock-picking. Just because they're interested in a particular stock doesn't mean it's a wise pick or the right pick for you.

Still, there's nothing wrong with at least taking a closer look at some of the names these traders have collectively chosen as their top prospects. Sometimes the crowd employs a great deal of collective wisdom, even if its individual members don't realize it.

SPONSORED:

10 stocks we like better than Robinhood Markets, Inc.

When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now... and Robinhood Markets, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

 

*Stock Advisor returns as of November 10, 2021


In : 848FINACE 


Tags: 4 robinhood stocks investors can't get enough of 

Panerai Luminor "Blackseal" PAM76 Titanium Black & Silver dial 44mm Automatic wa

PANERAI WATCH
LUMINOR / Ref. PAM76
44mm, Titanium
W525050
Panerai Luminor "Blackseal" PAM76 Titanium Black & Silver dial 44mm Automatic watch
TRY IT ON
G&S Price: $22,000

SALE PRICE

$16,900 


    HOT 103.1 FM HOUSTON

    Fashion director finds. Everything our fashion office is obsessed with right now.

    Shop Janelles's finds

    Instagram



    Here’s $30 of BTC, on us.
    Get free $30 of BTC 
     by funding your Invstr+
    account
    with $100 or more.
    Fund account & claim $30 of BTC
    Need help? Contact us at
     
    supportplus@invstr.com



    Invest, spend, and earn 2.05% APY*–all through your brokerage account.
    Our goal at Robinhood is to democratize finance. This means delivering products that help you do more with your money and improve your life. Today, we're excited to introduce Cash Management, a new feature to give you more flexibility with your brokerage account.
    JOIN THE WAITLIST
    Flexible Spending
    Use your Robinhood debit card anywhere Mastercard® is accepted around the world.
     
    Earn 2.05% APY
    Your uninvested cash is moved to banks in our program that pay you 2.05% APY*. Like all variable rates, this could go up or down over time.
     
    FDIC Insurance
    Your cash in the program banks is eligible for up to $1.25 million of FDIC insurance, or up to $250,000 per bank, subject to FDIC rules.
     
    75,000+ ATMs
    Don't pay fees at any of the 75,000+ ATMs in our network.
    JOIN THE WAITLIST


    See the source image



    For the next two weeks, you can earn increasing levels of Stock-Back™ rewards when you shift your everyday spending to your Stash debit card.* 

    Every qualifying swipe over $5 gets you closer to leveling up your Stock-Back rewards. Levels start tomorrow and reset to zero on Monday, November 18.

    Follow Us

     

    Flag Counter


    Flag Counter

    Make a free website with Yola