This year has been one that most investors will not soon forget. The outbreak of the COVID-19 pandemic caused the fastest bear market in history, followed by a rapid recovery, and even new all-time highs, for some of the largest and best-known stocks on the market.
At the same time, the Robinhood online stock trading app has gained popularity, particularly among young and inexperienced investors, who quickly turned to the platform en masse, hoping to take advantage of the once-in-a-lifetime investment opportunity.
While not all of your favorite picks are worth it (and some are actually quite risky), Robinhood investors have been depositing their hard-earned cash into these high-growth stocks during the final 30-day period ending 27 July 2020.
Image source: Getty Images.
Driven to Tesla stock
Without a doubt, the most popular stock among Robinhood investors in the last 30 days has been the manufacturer of electric vehicles (EV) Tesla (NASDAQ: TSLA). A whopping 217,873 of platform investors have added Tesla to their accounts in the past month, bringing the total to 537,244. This increase in popularity has led the company to become the eighth most popular action among members of the investment app.
Robinhood investors are certainly enthralled by Tesla’s impressive recent rally. Even after a pullback in the last few days of trading, the stock has still gained an impressive 49% in the past month alone, and 242% so far in 2020.
Tesla has made headlines in the past few weeks as it surpassed several important milestones that bode well for the company’s future, while helping the line founder Elon Musk’s pocket in the process. The electric car maker reported its fourth consecutive quarterly GAAP performance during its second-quarter financial report last week, making the shares eligible for inclusion in the S&P 500.
The recent electrifying rebound briefly raised Telsa’s shares above a $ 300 billion market cap, though it has cooled somewhat in recent days. Stock performance has also resulted in a lucrative payday for Musk, making him eligible for 1.69 million additional stock options. With a strike price of about $ 350, the enigmatic inventor could reap a payday of more than $ 2 billion, though he can’t sell the shares for the next five years.
Those metrics help illustrate the bright future ahead for Tesla, so it’s no surprise that Robinhood investors have the automaker EV at the top of their charts.
Image source: Getty Images.
Buy Amazon stock
Another action that has been a huge hit with Robinhood investors over the past 30 days is the ecommerce giant. Amazon.com (NASDAQ: AMZN), which attracted 117,908 investors in the past month. This makes the tech giant the twelfth most popular group among Robinhood members.
Amazon has been in the news since the coronavirus pandemic occurred, no doubt keeping the company a top priority for Robinhood investors adding to its portfolios. The company has seen an increase in online retail orders from consumers taking refuge there. Demand for Amazon Web Services (AWS), its cloud computing service, has also increased as companies around the world rushed to adopt remote work. Amazon Prime Video and Music has also helped entertain stranded families at home.
The tech titan will report its second-quarter earnings later this week, and the question is not whether Amazon’s business will grow, but by how much. During the first quarter, revenue growth accelerated to 26% year-over-year, compared to 17% in the prior-year quarter, and posted the highest growth rate since the third quarter of 2018. CEO Jeff Bezos He said Amazon planned to spend the entire expected $ 4 billion operating profit, and potentially more, on “COVID-related expenses, bringing products to customers and keeping employees safe.”
Robinhood investors are also no doubt aware of Amazon’s rising stock price, which has recovered more than 64% so far in 2020, easily outperforming the equilibrium performance of the S&P 500 and the NASDAQ, which has gained around 16%.
With multiple growth drivers and the pandemic far from over, it’s easy to see why Robinhood investors find Amazon such an intriguing purchase.
Image source: Getty Images.
A bite of apple broth
Another high-profile stock that is a hit with Robinhood investors is none other than Apple (NASDAQ: AAPL). Considering the affinity millennial consumers have for the tech titan’s gadgets, it’s no wonder that 89,346 Robinhood investors have added Apple to their plate in the past 30 days. This makes the device maker the sixth most popular overall stock on the investment platform.
While sales of the iconic iPhone were hit last quarter, there are a number of other growth factors that are driving Robinhood investors back to Apple. Earlier this year, Apple reintroduced the iPhone SE, its budget-constrained device, which offers cash-strapped consumers another smartphone option.
In addition, the company’s service and wearable categories have stepped in to help eliminate slack. In the past four quarters, Apple’s services segment has produced more than $ 50 billion in revenue, growing at more than 18% of the tech giant’s total sales. At the same time, the segment of portable accessories, home and accessories has generated more than $ 28 billion and has increased to almost 11% of Apple’s total revenue.
Sales increased in Apple’s second fiscal quarter (ended March 28, 2020), up 1% year-over-year, while service revenue hit a new record high and wearable devices hit a new quarterly record. This combination of growth factors has helped Apple outperform the overall market, gaining 28% year-to-date.
Robinhood investors are certainly interested in Apple’s continued prospects and current performance, making the iconic device maker a favorite among Robinhood investors.
