4 Unstoppable Robinhood Stocks to Buy in 2021

The stock market toppled numerous records for volatility in 2020 — and millennial investors loved every minute of it.  We know this because online investing app Robinhood, which is best known for its commission-free trades and gifting of free shares of stock to new members, added millions of new users in 2020. Since the average age of its user base is only 31, we can put two and two together to see that these young investors were pretty excited to get in on a wildly vacillating market…

While Robinhood’s millennial investors are known for chasing penny stocks and other momentum plays that should probably be avoided, the platform’s leaderboard (i.e., the 100 most-held stocks) contains a number of companies that investors can confidently buy right now. Here are four unstoppable Robinhood stocks that should deliver for investors in 2021 and beyond.

Square

Even with its monumental run-up last year, fintech stock Square (NYSE:SQ) has proven that it deserves a lofty premium. That makes it a good bet to generate a positive return for investors in 2021 and beyond.

For nearly a decade, Square’s bread-and-butter operating segment has been its seller marketplace. The company provides a variety of point-of-sale solutions to process payments and provide analytics to small businesses. Between 2012 and 2019, the gross payment volume (GPV) crossing its network grew by 49% annually.

This segment isn’t just for small businesses anymore. Square’s third-quarter report points out that 61% of GPV was derived from merchants with at least $125,000 in annualized GPV. That’s up 8 percentage points over the past two years. Since merchant fees drive its seller ecosystem, adoption by larger businesses should continue to drive double-digit growth.

Peer-to-peer payment platform Cash App is Square’s other major growth catalyst. Millennials and Generation Z favor digital payments. That preference is a big reason Cash App’s monthly active user count has more than quadrupled since the end of 2017. Cash App gives Square multiple avenues to generate revenue, including bitcoin exchange, which has become especially popular in 2020.

Sirius XM

Satellite radio operator Sirius XM (NASDAQ:SIRI) may not be growing as quickly as Square, but it offers abundant competitive advantages in the radio space that should make investors happier and richer in 2021.

Sirius XM is part of a small club of legal monopolies. Though it faces some degree of competition for listeners from terrestrial and online radio, it’s the only satellite radio operator. This affords the company healthy pricing power for its monthly subscriptions.

Equally important is how Sirius XM generates revenue relative to other radio operators. For online and…

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