Invest in Gold
Robinhood Markets (NASDAQ: HOOD) has revolutionized the trading landscape with its commission-free model, significantly increasing accessibility for retail investors, a trend that has influenced the entire industry.
As trading becomes easier and cheaper, retail investors are now a formidable force in the market, representing a growing share of total trading volume. A report from the investing platform Public indicated that retail investors made up a quarter of all equities trading volume in 2021, nearly double the percentage from ten years ago.
Robinhood frequently shares insights into the stocks that its users have the most confidence in. In this article, we will explore the ten most popular stocks on Robinhood as of June 2 and evaluate which ones stand out and which ones may not be as promising.
The Robinhood Investor Index was established to highlight which stocks have the highest conviction among investors on the platform. This information is likely valuable across the broader market, reflecting the significant impact retail investors now have.
The index monitors the performance of the top 100 stocks owned by Robinhood users, weighted by the level of investor conviction. To ensure diverse customer representation, Robinhood averages the conviction for each stock irrespective of account size.
Here are the ten most held stocks on Robinhood as of June 2:
- Tesla (NASDAQ: TSLA)
- Nvidia (NASDAQ: NVDA)
- Apple (NASDAQ: AAPL)
- Amazon (NASDAQ: AMZN)
- Ford Motor Company (NYSE: F)
- Microsoft (NASDAQ: MSFT)
- Palantir Technologies (NASDAQ: PLTR)
- GameStop (NYSE: GME)
- Meta Platforms (NASDAQ: META)
- Walt Disney (NYSE: DIS)
In my view, GameStop stands out as the least favorable stock in this top 10 list. Despite its surge during the meme-stock phenomenon, I see little intrinsic value in it today. The company’s primary operations are focused on physical retail, which has diminished significantly as more consumers purchase games online. GameStop’s attempts to diversify its income through areas like trading cards have not yet proven successful.
On the other hand, I believe Microsoft presents the best investment opportunity in this lineup. As a diversified tech giant, Microsoft’s robust business portfolio includes its cloud services, Azure, which is experiencing impressive growth. Analysts predict high adoption rates for Microsoft’s AI services, with projections indicating a possible increase in the stock’s value and overall market position.
Before making any investment decisions regarding Microsoft, it is worth noting that recent analyst recommendations have highlighted other top picks that may also yield significant returns. Top-performing stocks from previous years, such as Netflix and Nvidia, illustrate the potential for remarkable growth.
