Robinhood stocks have been on fire in 2020.
The S&P 500 just completed its best quarter since 1998, and some of the Robinhood traders’ most popular stocks were among the best performers of the quarter. Robinhood traders are generally considered to be younger and more tech savvy than the typical retail trader. In fact, the median age of Robinhood users is about 31, the company says. For those interested in which companies that millennial and Gen Z investors consider third-quarter best buys, here are the top 10 stocks Robinhood traders have scooped up in the last 30 days.
Nikola Corp. (ticker: NKLA)
Electric vehicle maker Tesla (TSLA) has been a hit for investors in the past year, and Robinhood traders are hoping they can catch lightning in a bottle again with Nikola, another EV stock named for inventor Nikola Tesla. Nikola makes battery-electric and hydrogen-powered trucks, and it went public June 4 with a reverse merger. Nikola is a much earlier-stage company than Tesla. Critics have pointed out that the company doesn’t yet have a product on the market or factory to produce vehicles, but more than 128,000 Robinhood users added NKLA stock in the last month.
Workhorse Group (WKHS)
Workhorse is another highly speculative EV play that Robinhood investors have been eating up. Workhorse makes battery-electric delivery vans and has partnered with UPS (UPS) to design and produce trucks. Unlike Nikola, Workhorse has been public for years, but its stock has only recently gotten caught in the Wall Street EV buying frenzy. Despite reporting about a 77% drop in revenue and just $4.7 million in net income in the first quarter, Workhorse shares are up more than 450% year to date. More than 110,000 Robinhood users bought WKHS stock in the last 30 days.
Ideanomics is another tech company focused on the global transition to commercial electric vehicles. In mid-June, Ideanomics reported that subsidiary Mobile Energy Global secured an order for 300 EVs from ride-hailing company Didi Chuxing. Short sellers Hindenburg Research and J Capital Research have accused the company of fraud, but Ideanomics has denied these allegations. Ideanomics shares skyrocketed more than 700% in the first three weeks of June and increased about 100% in the last month. About 95,000 Robinhood users bought the stock in the last 30 days, despite the extreme volatility and fraud allegations.
E-commerce and cloud computing giant Amazon.com isn’t the typical next-generation auto stock, but even Amazon had an auto connection in the last month. Amazon announced a $1.2 billion buyout in late June of autonomous vehicle and robotaxi startup Zoox. One of the top-performing mega-cap U.S. stocks so far in 2020, Amazon has gained about 65% year to date. While other companies are struggling with economic shutdowns, the work-from-home environment has created booming demand for Amazon’s businesses. About 120,000 Robinhood users added AMZN stock to their holdings in the last month.
Top Ships (TOPS)
Top Ships is a tanker vessel operator that transports crude oil, petroleum and other liquid chemicals. The company on June 15 priced a 60 million-share offering at 13 cents per share. Top Ships investors are unfortunately very familiar with raises. Total long-term debt is up more than 1,100% in the last five years. Things have gotten even worse for struggling Top Ships as the oil industry has been ravaged by travel shutdowns. Despite the difficulties, more than 85,000 Robinhood accounts added TOPS stock in the last month.
Apple is expected to roll out its first 5G iPhones later this year. More than 110,000 Robinhood users added Apple stock to their holdings in the last 30 days. More than 500,000 Robinhood users now own Apple shares in their accounts, more than any other stock on this list. Despite a $1.62 trillion market cap, Apple shares gained about another 7% in the last month. And Robinhood traders may believe that the 5G smartphone upgrade cycle will soon make Apple the first $2 trillion public company.
Tesla is the poster child for EV stocks, so it’s not surprising that Robinhood traders have been buying the stock hand over fist. Tesla recently reported 90,650 deliveries for the second quarter, down about 5% from a year ago. Tesla’s stock is up nearly 37% in the last month, and its market cap has risen to almost $258 billion. Tesla has now passed Toyota Motor Corp. (TM) as the world’s most valuable automaker, despite having sold only about 3% as many vehicles as Toyota did last year. More than 140,000 Robinhood users added TSLA stock to their holdings in the last 30 days.
Hertz Global Holdings (HTZ)
Rental car company Hertz filed for bankruptcy protection back on May 22, yet its stock is still trading at about $1.40. In mid-June, Hertz attempted to capitalize on its resilient stock price by selling $500 million worth of shares to raise cash as it works through bankruptcy. However, Hertz abandoned the controversial offering plan after the Securities and Exchange Commission said it was reviewing the sale. Robinhood traders seem to be making a dangerous bet that the company will have equity value remaining after bankruptcy. More than 55,000 Robinhood users added HTZ stock in the last 30 days.
Shares of mall retailer Gap got a huge boost in late June after rapper Kanye West signed a deal to start selling his Yeezy brand’s new clothing line for men, women and children in Gap stores in 2021. Gap didn’t disclose the terms of the 10-year deal with West, but the market and Robinhood traders are responding positively to the Kanye buzz. Despite abysmal first-quarter sales numbers, GPS stock is up about 17% since the Kanye deal. And about 83,000 Robinhood users have added the stock to their holdings in the last month.
Plug Power (PLUG)
Fuel cell power stock Plug Power is a popular alternative energy investment among Robinhood users. June was a big month for Plug. Wall Street analysts from Barclays and B. Riley FBR released bullish commentary on the stock early in the month. Plug Power also announced the completion of buyouts of United Hydrogen Group and Giner ELX, which the company said will improve its position in the hydrogen market. Finally, Plug Power raised its 2024 revenue guidance by 20% from $1 billion to $1.2 billion. About 85,000 Robinhood accounts added PLUG stock in the last month.
These stocks are popular among Robinhood investors:
— Nikola Corp. (NKLA)
— Workhorse Group (WKHS)
— Ideanomics (IDEX)
— Amazon.com (AMZN)
— Top Ships (TOPS)
— Apple (AAPL)
— Tesla (TSLA)
— Hertz Global Holdings (HTZ)
— Gap (GPS)
— Plug Power (PLUG)
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