In this article, we will take a detailed look at the 11 Most Popular Stocks on Robinhood in 2024. For a quick overview of such stocks, read our article5 Most Popular Stocks on Robinhood in 2024.
Amid rising inflation and economic uncertainty, millions of young Americans are starting to invest in different asset classes to secure their future and achieve their financial goals. As of the end of 2022, a whopping 58% of US households reported owning stocks, according to the Federal Reserve's survey of consumer finances. Increasing household wealth and the rise of zero-commission apps like Robinhood is partially responsible for this boom in retail investing.
Has there been any change in retail investing trends ever since the Fed started raising interest rates? Money-market funds, bonds, treasuries and fixed income in general became much more tempting for investors who wanted to avoid volatility that comes with stock investing. In August last year, The Wall Street Journal, citing data from Refinitiv Lipper, said in a report that in matter of just five weeks, investors pulled $11.6 billion from stock funds on a net basis, while money-market funds saw an inflow of $91.1 billion.
Young Americans are Investing in Stocks and Pre-IPO Growth Companies
Analysts also note that young Americans are increasingly getting bored of the same-old names when it comes to stocks and want to invest in companies that will grow big in the future. They want to invest in the Apples, Microsofts and Nvidias of the future. And there are interesting options available for such investors. The Destiny Tech100 (DXYZ) fund, which recently went public, lets you invest in high-growth companies that aren’t publicly traded. Some top names in the fund's portfolio are OpenAI, SpaceX, commercial space station company Axiom Space, Discord, Klarna, among many others. Other platforms allowing investors to invest in high-growth companies are also seeing a huge influx of young investors. For example, an April 16 Bloomberg report talked about Hiive, a platform that allows you to invest in pre-IPO, VC-backed companies. The report quoted Hiive's CEO Sim Desai, who said that the number of daily accepted bids has averaged 16 in the past 30 days, up from just three bids a year ago.
Robinhood's Popularity is Increasing
Robinhood is one of the popular platforms for retail investors, with over 10 million monthly active users. The company is in an expansion mode with new products for crypto investors as well as credit and gold cards. Last month, Bernstein started covering Robinhood stock with an Outperform rating, saying a "monster" crypto cycle over the next two years could boost the stock as more and more retail investors turn to the app to trade cryptocurrencies.
Beyond millennial Redditors, there's another class of retail investors entering the market: teenagers. Investing-related TikTok videos, personal finance blogs, Instagram influencers and an overall rise in financial awareness is causing teenagers in America to invest. In 2022, there were about 200,000 custodial accounts for teens at Schwab, compared to just 120,000 in 2019. That figure jumped to 300,000 in 2023.
For this article we used publicly available data from Robinhood that shows the most popular stocks on the investing app. We also did some manual research to see which stocks are trending on the app these days with positive sentiment. We have also mentioned hedge fund sentiment with these stocks where available. Some top names in the list include Microsoft Corp (NASDAQ:MSFT), Amazon.com Inc (NASDAQ:AMZN) and Meta Platforms Inc (NASDAQ:META). Why do we pay attention to hedge fund sentiment of stocks? Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).
11. Trump Media & Technology Group Corp (NASDAQ:DJT)
Number of Hedge Fund Investors: N/A
Trump Media & Technology Group Corp (NASDAQ:DJT) is a new arrival in the list of popular stocks on Robinhood. The stock plummeted after Trump Media & Technology Group Corp (NASDAQ:DJT) revealed plans to sell more shares in the coming months. Trump Media & Technology Group Corp (NASDAQ:DJT) filed to register 146.11 million shares of common stock for holders, 21.49 million shares of common stock issuable upon the exercise of warrants, and 4.06 million warrants to purchase common stock. DJT is rebounding after these dips and the stock is up a whopping 23% over the past five days.
GameStop Corp (NYSE:GME) remains one of the favorites of retail investors who scored huge wins against hedge funds shorting the stock back in the pandemic days. GameStop Corp (NYSE:GME) shares have lost about 39% so far this year. Short sellers are targeting the stock again, with GameStop Corp's (NYSE:GME) short interest coming in at 24% as of April 16. Are retail investors banding together yet again to beat these short sellers? Only time will tell. But for now, the stock is declining after disappointing Q4 results which saw GameStop Corp's (NYSE:GME) hardware sales tanking.
Out of the 933 hedge funds tracked by Insider Monkey, 40 hedge funds had stakes in Ford Motor Co (NYSE:F) as of the end of the fourth quarter of 2023. The most significant stake in Ford Motor Co (NYSE:F) is owned by Ken Fisher's Fisher Asset Management which had a $721 million stake in Ford Motor Co (NYSE:F).
In addition to Ford, retail investors are also buying Microsoft Corp (NASDAQ:MSFT), Amazon.com Inc (NASDAQ:AMZN) and Meta Platforms Inc (NASDAQ:META).
Ranking eighth in our list of the most popular stocks on Robinhood in 2024 is Tesla Inc (NASDAQ:TSLA), which has lost about 35% in value year to date. Amid growth challenges and woes in China, Tesla Inc (NASDAQ:TSLA) has decided to cut 10% of its global workforce.
As of the end of the last quarter of 2023, 82 hedge funds tracked by Insider Monkey had stakes in Tesla Inc (NASDAQ:TSLA). The most significant stake in Tesla Inc (NASDAQ:TSLA) is owned by Philippe Laffont’s Coatue Management which had a $1 billion stake in Tesla Inc (NASDAQ:TSLA).
“Tesla, Inc. (NASDAQ:TSLA) is an electric vehicle manufacturer with a significant technological lead in its large and rapidly growing addressable market. Tesla is a transportation company that is setting the pace for industry innovation, in our view. During the quarter, the company reported weaker-than-expected fiscal third quarter earnings, where gross margins were negatively impacted by factory downtime and ramping production volumes at new manufacturing plants. However, the company noted that they remain confident by the amount of data that Tesla’s established and growing fleet of vehicles has gathered, which may bode well for the company’s full self-driving capabilities.”
Walt Disney Co (NYSE:DIS) is one of the most popular stocks on Robinhood in 2024. The stock has gained about 24% so far this year. Most of these gains came after Walt Disney Co (NYSE:DIS) won its proxy fight against Nelson Peltz who had launched an activist campaign to get board seats at Walt Disney Co (NYSE:DIS). Like DIS, hedge funds and retail investors also like Microsoft Corp (NASDAQ:MSFT), Amazon.com Inc (NASDAQ:AMZN) and Meta Platforms Inc (NASDAQ:META).
Walt Disney Co (NYSE:DIS) is also one of the most popular stocks among the 933 hedge funds tracked by Insider Monkey. Our data shows that 89 hedge funds had stakes in Walt Disney Co (NYSE:DIS) as of the end of 2023.
Madison Sustainable Equity Fund made the following comment about The Walt Disney Company (NYSE:DIS) in its Q3 2023 investor letter:
“During the quarter, we sold our positions in Bristol-Myers Squibb and The Walt Disney Company (NYSE:DIS). The Walt Disney Company is facing a difficult and uncertain transition in its core media business assets including the ESPN business and other linear media assets. These media assets are cash generative but face secular decline as consumers are cutting their expensive cable subscriptions and moving to alternative streaming options. This has resulted in a decline in operating profits for the media division. The media business has long-term fixed costs related to its sports broadcasting agreement with multiple sports leagues which will further pressure profits during this transition.”
Apple Inc (NASDAQ:AAPL) shares are struggling this year as the company continues to face growth challenges amid competition. In a latest blow, data shows that Apple Inc (NASDAQ:AAPL) has lost its market leader status in the smartphone industry to Samsung. Data from IDC shows that iPhone shipments fell 9.6% in the first quarter of 2024. Samsung’s market share jumped to 20.8% as of the end of the first quarter, while Apple Inc's (NASDAQ:AAPL) declined to 17.3%. IDC said rising competition in China from companies like Huawei, Xiaomi, OPPO, Vivo, among others, is part of the reason why Apple Inc's (NASDAQ:AAPL) share dipped.
“Never before has following the crowd made so much money. Nor, in our estimation, so little sense. But just look at the opportunities the crowd has left for those of us willing to take a different view. We could wax lyrical about the glaring difference in value between Korean banks priced at 4 times earnings, versus Apple Inc. (NASDAQ:AAPL) at 28 times, despite diverging fundamentals—Apple is increasingly at risk of bans in China, while Korean banks could double their dividends.”
