Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
Robinhood is a favorite among the younger generations for its sleek interface and modern design. It has received praise for such features as fractional stock ownership — especially useful when traders have small capital. These features, along with the pandemic, have led to a phenomenal increase in its users base in 2020.
Users who want to begin their investment journey can easily get started with Robinhood’s stock trading app. To that end, we’ve listed the top stocks on Robinhood in January 2021. As always, do your own research when considering stocks.
3 Popular Stocks on Robinhood
The following stocks should largely be unsurprising, as two might be considered as good buys in the current world we live in. Of course, there are other stocks too, but the following are worth considering for both shorter and longer time frames.
The parent company of Google, Alphabet, is one of the most valuable enterprises around. It has experienced its shares of ups and downs in the media, but it continues to grow. The sheer dominance of the company in some spaces and its varied product line-up lends it a large protective moat.
Square is a payments solution company most known for its Cash App. Founded by Jack Dorsey, the company’s product is a hit among younger individuals. In its short lifespan, it has already attracted 30 million users.
Besides impressive business figures, Square hit the headlines for its $50 million investment into Bitcoin. The company is taking large steps to lead the financial revolution and competing with many others. But the fintech industry is nascent, with plenty of time for companies to establish a strong strategy that distinguishes them.
Both Q2 2020 and Q3 2020 recorded increases in gross profit, as well as other metrics.
Q2 and Q3 gross profits respectively increased by 28% to $597 million and 59% to $794 million year-over-year.
Q2 2020 also saw Bitcoin become the dominant revenue stream for the Cash App for the first time, $17 million of which was profits.
Square expects the company to grow and add more users; given the growth of the crypto market, this could result in stronger revenue in 2021.
Broadcasting company and satellite radio operator, Sirius XM, might seem like an odd addition, especially placed against the previous two. Despite it operating in radio, its business model still makes it worthwhile to consider at the very least.
Subscription and advertising form the majority of Sirius XM’s revenue streams. The former, in particular, has done well during the pandemic, which saw more users subscribe. CEO Jennifer Witz highlighted the “resiliency” of the company during difficult economic times.
81% of sales resulted from subscription services during the pandemic.
Its Q3 2020 report logged a revenue of $2,025 Million, up 1% year-over-year.
Gross profit and margins remained steady during Q3, as the number of self-paying subscribers hit 30.5 million.
Robinhood’s suite of features continues to make it grow at a faster than average rate. Millennials have become more financially savvy since the pandemic began, and the broker benefits—as it constitutes one of the most popular stock trading apps among younger investors.
With the different features it offers, new investors looking to get started with investing can take a good advantage. This, and the variety of stocks, besides the ones above, make it a good choice for those seeking financial opportunities.
What do you think of the stocks listed here? Are there any you would recommend? Let us know what you think in the comments below.
Disclosure:Tim Fries has no positions in any of the stocks mentioned, and has no plans to initiate any positions within the 72 hours following the publishing of this article. This article expresses the opinions of Tim Fries. Tokenist Media LLC has no position in any of the stocks mentioned, and does not plan to initiate any positions within 72 hours of the publishing of this article. Please consult our website policy for more information.
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firms specializing in sensing, protection and control solutions.