Robinhood stocks have been on fire in 2020.
A volatile stock market helped drive 3 million new users to open Robinhood accounts in the first quarter of 2020 alone. Robinhood investors are generally considered to be younger and more tech savvy than the typical investor, with an average age of about 31. However, they are also relatively inexperienced; Robinhood says half of its new users have never invested. Several top Robinhood stocks have been among the best performers in the market since the S&P 500 bottomed in March. Here are the 10 stocks Robinhood investors bought most aggressively in the last month.
Tesla (ticker: TSLA)
Electric vehicles have been one of the hottest investing trends of 2020, and Robinhood users have been aggressively scooping up Tesla stock. Tesla reported a fourth consecutive profitable quarter in July, qualifying the stock for inclusion in the S&P 500. After gaining about 30% in June, Tesla shares rallied about another 33% in July. Tesla’s market cap now stands at nearly $267 billion, making it the most valuable auto company in the world. Despite the profit, revenue for Tesla was down 4.9% year over year last quarter. More than 210,000 Robinhood users added TSLA stock to their holdings in the last 30 days.
It seems nothing can stop e-commerce and cloud computing giant Amazon. In fact, the company’s blowout second-quarter earnings report in July highlights just how much the shelter-in-place environment is seemingly helping Amazon’s business. Second-quarter revenue was up 40% over the same quarter last year, and Amazon guided for third-quarter revenue growth of at least 24%. Cloud revenue was up 29%, but grocery sales more than tripled from a year ago thanks to the current climate. While other retailers are struggling to survive, Amazon is gaining more retail market share each quarter. About 110,000 Robinhood users added AMZN stock to their holdings in the last month.
Apple also reported a blowout second quarter despite the economic disruption. The technology company reported 11% revenue growth, including 14.8% growth from its services segment. Apple’s iPhone sales were up just 1.6% from a year ago, but iPad sales rose 31%. Apple also announced a 4-for-1 stock split ahead of a 5G iPhone launch later this year. Shares are up about 20% in the last month and about 50% year to date, pushing the company’s market cap to more than $1.8 trillion. More than 110,000 Robinhood users added AAPL stock to their holdings in the last 30 days.
Shares of biotech company Moderna are up more than 280% so far in 2020 and about 28% in the last month thanks to optimism about the company’s potential coronavirus vaccine. Moderna received $472 million in government funding in July on top of the $483 million it accepted in April to support development of its vaccine candidate. Investors recognize the potential upside for the first company to get a vaccine to market, and Moderna, Pfizer (PFE) and AstraZeneca (AZN) appear to be the top three contenders. About 100,000 Robinhood accounts added MRNA stock in the last month.
Robinhood users are hedging their vaccine bets by buying Pfizer as well. Pfizer announced the beginning of its late-stage human trials in late July for its vaccine candidate. Pfizer and partner BioNTech said the new study includes 30,000 participants, and the vaccine could be ready for final regulatory review as soon as October. Pfizer previously said it could have up to 100 million doses ready by the end of the year. Pfizer shares are up 11% in the last month, and about 90,000 Robinhood users have added the stock to their holdings in that time.
Eastman Kodak Co. (KODK)
The year is 2020, and Kodak is one of the hottest stocks among the youngest generation of investors. After pivoting from cameras to blockchain technology in 2017, Kodak took another right turn in late July. The company announced it had secured a $765 million U.S. government loan to produce generic drug ingredients under the Defense Production Act. The announcement sent Kodak shares skyrocketing more than 1,780% in just four days, and Robinhood traders rushed to be part of the action. More than 90,000 Robinhood users added Kodak to their portfolios in the last 30 days.
Nio is one of the most popular ways for investors to play the electric vehicle trend in China. Nio has struggled with balance sheet issues in the past. However, the company announced in April a nearly $1 billion funding deal with a group of investors led by Hefei City Construction and Investment Holding Co. Nio reported a record 3,740 vehicle deliveries in June and surpassed 10,000 deliveries in a single quarter for the first time in the second quarter. More than 92,000 Robinhood users added Nio stock in the last 30 days.
Microsoft Corp. (MSFT)
Microsoft recently joined its big tech peers in reporting stellar earnings numbers for the second quarter. The technology company reported 13% revenue growth, including 47% growth in Microsoft Azure cloud sales. Office 365 commercial sales growth dropped below 20% for the first time last quarter, but the company’s Xbox and gaming services revenue jumped 65% because of the shelter-in-place environment. Microsoft is releasing the next-generation Xbox X gaming console before the holiday shopping season. Microsoft shares are up about 35% in 2020. More than 78,000 Robinhood users added MSFT stock in the last month.
Unlike other popular large-cap tech stocks, Netflix had second-quarter numbers and guidance in July that disappointed the market. Netflix guided for only 2.5 million net subscriber additions in the third quarter, less than half of the 5.2 million that analysts had been expecting. Netflix shares initially dropped 7% following the news, but they remain up more than 50% year to date. Robinhood users seem happy to buy the earnings dip in Netflix. About 76,000 Robinhood users bought the stock in the last 30 days. Netflix investors are seemingly ignoring the lackluster near-term guidance and focusing instead on the company’s long-term growth opportunities.
Spartan Energy Acquisition Corp. (SPAQ)
Tesla competitor Fisker is following the path that fuel cell vehicle maker Nikola Corp. (NKLA) took earlier this year and reverse-merging with publicly traded special acquisition company Spartan Energy. Such mergers are an alternative to initial public offerings, and the Spartan merger will provide Fisker with more than $1 billion in funding. Spartan shares jumped 29% the day the merger agreement was announced. Robinhood investors were eager to immediately get their hands on Spartan shares, even though the merger is not expected to close until at least September. More than 58,000 Robinhood users bought SPAQ stock in the last 30 days.
Robinhood users are buying these stocks:
— Tesla (TSLA)
— Amazon.com (AMZN)
— Apple (AAPL)
— Moderna (MRNA)
— Pfizer (PFE)
— Eastman Kodak Co. (KODK)
— Nio (NIO)
— Microsoft Corp. (MSFT)
— Netflix (NFLX)
— Spartan Energy Acquisition Corp. (SPAQ)
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10 Robinhood Stocks Investors Are Buying in August originally appeared on usnews.com