3 High-Growth Tech Stocks Robinhood Investors Are Buying Hand Over Fist

3 High-Growth Tech Stocks Robinhood Investors Are Buying Hand Over Fist

Posted On October 16, 2020 2:02 pm

Robinhood has certainly become the go-to app for young investors in 2020. While the financial services company and stock-trading platform has its critics, millennial investors flocked to its app in record numbers following the equally record-breaking stock market plunge and subsequent recovery that transpired earlier this year.

While some of these Robinhood investors’ stock choices have been downright risky, there are also high-quality stocks in the list of most popular stocks being held by its users.

Let’s look at three high-growth stocks that have been among their top choices in recent weeks and why other investors should consider adding these companies to their portfolios as well.

1. Amazon: an e-commerce buy for any portfolio

Robinhood investors have been enamored with Amazon (NASDAQ:AMZN) recently, buying up stock in the e-commerce giant like it’s going out of style. The world’s largest online shopping destination is also the fourth-most popular stock on the Robinhood app this month.

With the onset of the pandemic, Amazon experienced a growth spurt that will likely continue for the foreseeable future. The company was already the digital destination for the majority of consumers in the U.S. The company’s loyalty program, Amazon Prime, closed out 2019 with an estimated 112 million subscribers. That means that of the roughly 129 million households in the U.S. (according to data compiled by Consumer Intelligence Research Partners), almost 87% contain an Amazon Prime subscriber.

Many new shoppers pivoted to e-commerce, while others made many more of their purchases online, as evidenced by the surge in Amazon’s revenue growth. Net sales in the first quarter jumped 26% year over year but accelerated to 40% in the second quarter, marking the highest quarterly growth rate Amazon has generated in two years.

Even more impressive was the bottom line. After warning shareholders that it would spend all of its operating profit of more than $4 billion on worker protection and other coronavirus-related expenses, Amazon produced a net income of $5.2 billion, nearly doubling year over year, even after the aforementioned expenditures.

Once shoppers experience the ease and convenience of shopping online, there’s no going back. Add in the company’s industry-leading, cloud-computing operation — Amazon Web Services (AWS) — its extremely sticky Prime subscriber program, and its forays into streaming video, music, and gaming, it’s easy to see why Amazon is a favorite among Robinhood investors.

Continue reading the full article at Fool.com

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