Robinhood has tons of young investors.
Trading app Robinhood has become extremely popular for the younger generation of investors. In fact, the typical age of Robinhood users is about 30. By looking at which stocks Robinhood users are buying and selling, investors can gain insight into where millennial and Gen Z investors see the economy heading. This year's health crisis sell-off was the first economic downturn many of these younger investors have faced. Robinhood reported a spike in new accounts, suggesting that most of these investors were buying the dip. Here are the 10 most popular stocks in June among Robinhood users.
Ford (ticker: F)
While the media often talks about electric vehicle maker Tesla (TSLA) as the darling of the younger generation, Ford is the most popular stock in June among Robinhood users. Whether they see the stock as undervalued relative to Tesla or simply find Ford's $7 share price as much more affordable, nearly 890,000 Robinhood users hold shares of Ford in their accounts. For reference, Robinhood claims to have more than 10 million accounts. Ford has also been one of the most popular stocks to buy among Robinhood users in the last month, as nearly 16,500 new users have purchased Ford shares.
Price change since May 8: +54.8%
General Electric (GE)
Once again, instead of buying high-flying tech stocks, younger Robinhood investors are more interested in shares of industrial stalwart General Electric. GE has been implementing a turnaround plan for the last few years that includes selling off noncore assets, shoring up its balance sheet, and focusing its efforts on its aviation, power and renewable energy businesses. As with Ford, GE likely attracts Robinhood users with an affordable $8 share price. Regardless, nearly 800,000 Robinhood users own the stock.
Price change since May 8: +34%
American Airlines (AAL)
Robinhood investors clearly saw the 2020 airline disruption as a buying opportunity. American was the most popular stock among the 10 stocks mentioned among Robinhood users in the last month. About 634,000 users now own American. American shares skyrocketed early this month, when the company announced it will be flying 55% of its full domestic schedule in July, up from just 20% in May. Among the 10 most-owned Robinhood stocks, American was the top performer in May, too, gaining roughly 109% overall since this time last month.
Price change since May 8: +109.6%
Disney's business has had unique and mixed exposure to the health crisis. The company's cruise ships, theme parks, and movie and TV productions have been shut down because of health concerns. But the shelter-in-place environment has been a bullish catalyst for its Disney+ streaming service. Disney reported 54.5 million subscribers as of May 4, up more than 105% from December 2019. About 584,000 Robinhood users own Disney stock, an increase of more than 49,500 subscribers compared with a month ago. DIS stock is up 23% over the last four weeks.
Price change since May 8: +22.3%
Delta Air Lines (DAL)
Like American Airlines, Delta Air Lines is another one of the big four U.S. airlines that was grounded because of the health crisis. But now that the industry is showing early signs of recovery, the stocks are taking off, and Robinhood investors are along for the ride. Delta said its July flight schedule will be roughly double its May schedule. On top of that, Delta is capping seating between 50% and 60% on flights to ensure customer distancing. Roughly 588,000 Robinhood users own Delta stock, an increase of more than 49,500 new subscribers compared with a month ago. DAL stock is up by nearly 71% in that stretch, making it the second-best-performing stock in the top 10 behind only American.
Price change since May 8: +70.3%
The cruise line industry was one of the biggest victims of the health crisis. Unlike airlines, cruise companies like Carnival are still shut down. But the ramp up in the airline business could be good news for travel stocks such as Carnival, which plans to resume business starting August 1. Investors are unsure what type of demand to expect when the cruise business returns, but recent airline demand bodes well for cruises. More than 496,000 Robinhood users own Carnival stock, nearly 29,000 more compared with a month ago. CCL stock is up by about 75% overall in that period.
Price change since May 8: +75%
Among all the high-profile stocks in the tech sector, it's a bit surprising that GoPro is the top one for younger Robinhood users. GoPro's stock price gained 42% in the last month but remains about $5 per share and is down 92% in the last five years. The stock got a boost in May after GoPro reduced its operating costs and boosted its digital sales in the first quarter. GoPro also announced record online camera unit sales over Memorial Day weekend. Nearly 480,000 Robinhood users own GoPro, which is roughly a 5% increase from a month ago.
Price change since May 8: +65.9%
Aurora Cannabis (ACB)
After a horrendous 2019 that had many investors concerned about the company's solvency, Aurora Cannabis wowed the market with a "better than expected" third-quarter earnings report in May. In addition to beating revenue growth expectations, Aurora announced a buyout of U.S. cannabidiol leader Reliva, which further reassured investors. About 464,000 Robinhood users hold Aurora shares, with 2% fewer users compared with a month ago. That makes it the only stock in the top 10 that has experienced net selling. Users are taking profits on the stock's 65% gain in the last month.
Price change since May 8: +79.2%
Software and cloud services giant Microsoft is one of the lowest-risk stocks among the 10 most popular Robinhood investments. Microsoft shares have gained just 7% over the last month, lagging the overall S&P 500 and generating the lowest returns among the 10 stocks mentioned. Despite the stock's lackluster performance lately, Wells Fargo predicts that Microsoft will soon become the world's first $2 trillion company thanks to growth from its Azure Business Cloud. More than 453,000 Robinhood users own MSFT stock, which represents a one-month increase of more than 3,000 users with the stock in their portfolio.
Price change since May 8: +7%
The final stock among the 10 most popular Robinhood investments is Microsoft's biggest contender in the race to a $2 trillion market cap: Apple. Evercore, an investment banking advisory firm, recently projected that Apple will touch the $2 trillion market cap level within the next four years on the strength of booming services and wearables revenue growth. Evercore said Apple provides the most favorable risk-reward balance among all large-cap technology stocks. Apple's stock and market cap climbed more than 14% in the last month, allowing it to surpass Microsoft's valuation. More than 399,000 Robinhood users own Apple, which is an increase of more than 13,000 compared with May's users.
Price change since May 8: +14.2%
These stocks are trending on Robinhood: