Vladimir Tenev and Baiju Bhatt built the Robinhood platform with the aim that everyone should have access to the financial markets, not just the wealthy. The platform leverages technology to encourage everyone to participate and rose to fame primarily by offering commission-free trades, no account minimums, and an easy-to-use mobile app. With people spending more time at home and many sports being shut down, Robinhood found an audience with young and first-time investors…
While Robinhood doesn’t force users to trade and the platform can be used responsibly, critics say it gamifies investing. Robinhood publishes a list of the 100 most popular stocks on its platform based on how many users own the stock. For a stock to be listed on Robinhood’s 100 list, it usually has created some type of buzz in the market. Sometimes these stocks may not be the best investments long-term.
While not all stocks listed on Robinhood are fundamentally sound, there are definitely some stocks that possess both popular sentiment and underlying financial strength. Amazon.com, Inc. (AMZN), Alibaba Group Holding Ltd (BABA), NIO Inc. (NIO), and Activision Blizzard, Inc (ATVI) are four such Robinhood-listed stocks that still have upside left.
Amazon.com, Inc. (AMZN)
Unless you have been living under a rock and even then, you must have heard about AMZN. What started out in 1994 as a bookstore, now has become “an everything store” as envisioned by founder and CEO, Jeff Bezos. Already the world’s largest online retailer, AMZN also earns revenues through subscriptions from Amazon Music, and Prime Video. Besides manufacturing and selling electronic devices like the Fire tablet, Fire TV, Echo, Alexa, and Kindle, its Amazon Web Service (AWS) has been dominating the cloud computing industry.
AMZN’s net sales increased 40% year-over-year to $88.9 billion in the second quarter. The company’s EPS is expected to increase 71.4% in the current quarter, 37.5% in the current fiscal year, and at a rate of 36.0% over the next five years. The market expects AMZN’s revenue to increase 32% in the current quarter and 31.4% in the current financial year. The stock has gained 83.5% since hitting its 52-week low of $1626.03 in mid-March.
With the ‘Prime Day’ around the corner, the fall season could spell even more profits for AMZN. The market correction in September and the House Judiciary subcommittee recommending antitrust action, including the possible breakups of the Big Tech stocks, led to a decline in price of AMZN shares recently. However, this only means that it could be a good time to scoop up shares at a discount and benefit from future revenues.
How does AMZN stack up for the POWR Ratings?
B for Trade Grade
B for Buy & Hold Grade
B for Peer Grade
B for Industry Rank
B for Overall POWR Rating
The stock is also ranked #9 out of 57 stocks in the Internet industry.
Alibaba Group Holding Ltd (BABA)
Often known as “the Amazon of China,” BABA is the leading platform for global wholesale trade operating mainly in China. It operates through four segments: Core Commerce, Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives and Others. The company’s business has performed well especially as it met demand for the delivery services during the pandemic. A lesser known fact about BABA, is that it owns 47% of logistics affiliate Cainiao. In June 2020, Cainiao Post recorded over 100% year-over-year growth in average daily package volume.
BABA has an impressive earnings surprise history with the company surpassing EPS estimates in each of the trailing four quarters. The market expects BABA’s revenue to increase 55.4% in the current quarter and 36.2% in the current financial year. The company’s EPS is expected to increase 15.7% in the current quarter, 23.5% in the current fiscal year, and at a rate of 3.4% in the next five years.
The cloud computing industry has been the talk of the town and…
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