NIO Stock – The 10 Most Extensively Held Stocks on Robinhood
It has been an thrilling yr for millennial buyers. With stock market volatility operating effectively above historic norms since late February, millennial and novice buyers have piled into equities.
In case you’re questioning how we all know this, simply take a look at on-line investing app Robinhood. The app, which is well-known for providing commission-free trades, fractional share investing, and presents of free shares of stock to new members, has gained thousands and thousands of latest customers in 2020. The typical age of its person base is simply 31.
A fast take a look at Robinhood’s leaderboard (the 100 most-held stocks on the platform) exhibits that younger buyers have a penchant for high-risk, high-reward development stocks, in addition to Wall Street’s flavors of the week. The next 10 stocks are essentially the most extensively held on Robinhood.
Completely no shock right here: Apple (NASDAQ:AAPL) is the preferred and extensively held stock. Apple‘s iPhone is the dominant participant within the U.S. smartphone market, and the corporate ought to obtain a wholesome increase in gross sales now that its first-ever 5G-capable smartphone is on the market.
Moreover, Apple CEO Tim Prepare dinner is overseeing the transition from specializing in bodily merchandise to companies and wearables. Companies will be particularly profitable for Apple provided that they provide increased margins and extra secure quarter-to-quarter income than the bodily merchandise the corporate has relied on for many years.
2. Tesla Motors
With Wall Street placing the pedal to the steel in 2020 on electrical automobile (EV) stocks, it is also not a shock to see Tesla Motors ((NASDAQ:(TSLA))) park within the No. 2 spot on Robinhood. Tesla appears on observe to ship north of 500,000 autos this yr. It is at the moment on the forefront of battery innovation for EVs, which is a giant motive its first-mover benefit stays intact. The massive query now’s whether or not Tesla can preserve a $500 billion-plus valuation with out producing usually accepted accounting precept (GAAP) income solely from EV gross sales.
Robinhood buyers actually like auto stocks. For some time we noticed Ford (NYSE:F) maintain the highest spot on the leaderboard. These days, Ford is the third most-held stock, with ample alternative to develop its market share in China. The corporate goes large on EVs, too, with $11 billion in devoted investments between 2018 and 2022. Because the icing on the cake, the Ford F-Sequence pickup has been the preferred automobile bought within the U.S. for the previous 4 many years.
4. General Electrical
The fourth most-held stock on Robinhood is downtrodden conglomerate General Electrical (NYSE:GE). The corporate has undergone a serious reorganization to revive focus to its industrial roots. Millennial buyers are possible enamored with its perceived low share price and doubtlessly small price-to-earnings ratio. Sadly, General Electrical’s crippling debt load and an aviation trade troubled by the coronavirus illness 2019 (COVID-19) pandemic have made the trail ahead very troublesome.
Millennial buyers occur to be large followers of brand-name corporations they will relate to, just like the fifth most-held stock on the Robinhood platform, Microsoft (NASDAQ:(MSFT)). Ol’ Softy is producing big-time gross sales development throughout the board, with its cloud-focused choices actually packing a punch. For instance, Azure grew gross sales by 47% on a relentless foreign money foundation within the newest quarter. For as giant as Microsoft is ($1.63 trillion market cap), it is actually unbelievable that it retains rising by a low double-digit share.
6. American Airlines Group
Maybe essentially the most baffling obsession for Robinhood buyers is their love of airline stocks like American Airlines Group ((NASDAQ:(AAL))). The airline trade is capital-intensive and low-margin. It requires the economic system to be operating on all cylinders to generate a revenue. American Airlines is essentially the most indebted of all airline stocks (roughly $33 billion in web debt), and it will possibly now not pay a dividend or repurchase its personal stock as a situation of receiving COVID-19 federal help. It is most likely the worst firm of Robinhood’s hottest stocks.
Have I discussed that Robinhood buyers love EV stocks? China-focused EV producer NIO (NYSE:NIO) is on the forefront of innovation within the largest auto market on this planet. Over the previous two quarters, NIO has delivered greater than 22,500 of its premium SUV EVs — greater than the corporate delivered within the entirety of 2019. Relying on the corporate’s manufacturing capabilities, NIO might turn into worthwhile on a recurring foundation by as early as 2022.
The entire FAANG stocks will be discovered on Robinhood’s leaderboard, however solely Apple and Amazon ((NASDAQ:AMZN)) are within the prime 10. Amazon continues to dominate the e-commerce panorama, with eMarketer estimating the corporate will maintain a 38.7% share of U.S. on-line gross sales in 2020. It is also been ready to make use of its on-line dominance to enroll greater than 150 million folks worldwide to a Prime membership.
As with Microsoft, Amazon‘s future is all concerning the cloud. Amazon Internet Companies (AWS) now sports activities an annual income run-rate of $46 billion, with the corporate’s working margins anticipated to climb considerably as AWS grows into a bigger share of whole gross sales.
The corporate behind the happiest place on Earth — Disney (NYSE:DIS) — is something however a “Goofy” decide. Few corporations are nearly as good at emotionally partaking with shoppers as Disney. It is taken fairly the hit resulting from COVID-19 as a result of its theme parks have sporadically closed all year long. Nonetheless, Disney’s mental property is priceless, as evidenced by the 73.7 million subscribers the corporate courted for its Disney+ streaming service one yr after launch.
10. Delta Air Strains
Rounding out the highest 10 most-held stocks is one other head-scratcher: Delta Air Strains (NYSE:DAL). With six of the 51 most-held Robinhood stocks being airways, millennials should imagine that COVID-19 vaccines will enable life to return to regular sooner reasonably than later. Like American Airlines, Delta Air is lugging round quite a lot of debt ($45.Three billion in whole debt, to be precise). Servicing this debt goes to constrain reinvestment exercise for a very long time to come back, which makes Delta Air Strains a dangerous wager.
NIO Stock – The 10 Most Extensively Held Stocks on Robinhood