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7 Robinhood shares that even billionaires want in their portfolios
Robinhood is in the news once again. The controversial commission-free stock trading and investment app is reportedly ready to be announced. InvestorPlace web content producer Sarah Smith has written an informative article on what we know so far about the planned IPO in 2021. One thing we know for sure is that stocks will soar as soon as they reach the Nasdaq . One of the stories that has dominated the investment world over the past year is the rise of Robinhood. As a result of the new coronavirus pandemic, millennial investors got a lot of time on their hands and used their stimulus test to try to make money in the stock market. However, no one could have expected the combination of Robinhood, Millennium Investors and Reddit to contribute to an investment trend that few people would see coming. Hedge funds have burned on their short positions due to huge pressure in a series of strongly abbreviated names. InvestorPlace – stock market news, advice and trading tips In general, however, analysts have pleaded against going against Robinhood shares. Millennial investors usually intend to have the gut feeling rather than focus on fundamentals when making a decision. Source: StockRover.com Authorized Chart As shown by Form 13F filing with the Securities and Exchange Commission, several billionaires are pouring a lot of capital into certain Robinhood shares. So if you are hesitant to pull the trigger, you now have even more incentive to put your money in one of these vehicles. 7 Cheap Stocks With Growing Star Winds Here are seven striking, popular stocks on Robinhood: Alphabet (NASDAQ: GOOG, NASDAQ: GOOGL) Johnson and Johnson (NYSE: JNJ) Apple (NASDAQ: AAPL) Plug Power (NASDAQ: PLUG) Facebook (NASDAQ : FB) Aphria (NASDAQ: APHA) Palantir Technologies (NYSE: PLTR) Robinhood shares for sale: Alphabet (GOOG) Source: Benny Marty / Shutterstock.com Three Month Yield: 17.68% It’s no surprise that GOOGL stock a favorite for both hedge funds and the Robinhood crowd. There is literally nothing in our daily lives that is not affected by Alphabet’s products. No one needs to book Google shares. The use of their products in our daily lives is tremendous. The pandemic only increased their use. It is therefore no shock that users of Robinhood feel that this is an excellent place to invest their capital. Hedge funds have also increased their investments in the internet giant over the past quarter. Daniel Loeb’s Third Point Management has opened a 260,000 stake in the Google parent. Ole Andreas Halvorsen’s Viking Global started a 3% stake in the third quarter of 2020, increasing it by more than 427,000 shares in the fourth quarter of 2020. This means that there are no risks to being such a favorite among hedge funds. Google, along with other Big Tech giants, is always on the radar of Congress. However, the conglomerate has become so large that investors do not mind tackling legal challenges. Johnson and Johnson (JNJ) Source: Alexander Tolstykh / Shutterstock.com Yield of three months: 3.46% JNJ is mostly in the news these days because of the vaccine. Although the efficacy rate is the weakest among most of the major vaccines cleared for use, the pharmaceutical giant can still make a lot of money. Over the past four quarters, Refinitiv data shows that the U.S. multinational corporation has repeatedly beaten analysts’ expectations. Covid-19 vaccines will be a short-term wind. As it is the largest and most diverse healthcare company in the world, the company will do well regardless of the situation. Its operations are divided into three main categories, pharmaceuticals, medical devices and diagnostics and consumers. Most of the revenue came from the sale of drug and device groups. Due to its large scope and diversified businesses, it has been a steady, stable business for several years. The Eight Biggest Growths in the First Quarter Given this, it’s not surprising that hedge funds and Robinhood traders find JNJ interesting. The latter especially likes to play trends, and Covid-19 is the best of such examples. With this writing, shares of the pharmaceutical giant are trading at 29.5x price to earnings. Apple (AAPL) Source: WeDesing / Shutterstock.com Three Month Yield: -7.3% Apple is a gift that keeps on giving. The world’s largest technology company has beaten expectations 11 times in the last 12 quarters. Forecast shows the consensus analyst estimate followed by Refinitiv that revenue is expected to grow by 21.5% and 26.7% in fiscal 2021 and 2022. In the first quarter of fiscal 2021, Apple reported record revenue of $ 111.4 billion, up 21% from the previous year. , and quarterly diluted earnings per share of $ 1.68, up 35%, and expectations up 19%. Operating cash flow is a record $ 38.8 billion, and the company generated more than $ 30 billion during the quarter instead of reaching a net cash-neutral position over time. Due to such strong fundamentals, it is no surprise that you will find AAPL in the portfolios of several prominent investors. The chief among them is CEO Warren Buffett. Buffett is nicknamed “Oracle of Omaha” and is one of Apple’s biggest bulls with about 908 million Apple shares worth about $ 109 billion. Plug Power (PLUG) Source: petrmalinak / Shutterstock.com Three Month Yield: 3.98% One of the key themes of Joe Biden’s presidency is clean energy. The president of the United States has made no event about his ambitions to turn the country into a giant for clean energy. As a result, several alternative energy supplies are doing very well in the current market. And hydrogen-PLUG is no different. SK Group, the third largest conglomerate in South Korea, recently donated $ 1.5 billion to Plug Power to expand its hydrogen footprint. The initiative is part of South Korea’s general goal of achieving carbon neutrality by 2050. Separately, PLUG raised approximately $ 1 billion in capital. The company has therefore attracted a lot of money over the past twelve months to finance its operations. Together with peers Bloom Energy (NYSE: BE) and FuelCell Energy (NASDAQ: FCEL), the hydrogen fuel cell company dominates this renewable energy market division. Revenue has risen 36.4% over the past year, and if we look ahead; sales are expected to increase by 39.1% and 114.6%, per consensus estimate collected by Refinitiv. 7 Oil supplies put under pressure Although the stock is expensive, JP Corgan analyst Paul Coster said PLUG is the ‘best in class’. Facebook (FB) Source: Chinnapong / Shutterstock.com Three-month return: 9.34% Facebook is one of several technology stocks that have benefited greatly from the pandemic. Due to the nature of the health crisis, people got stuck at home, which led to a huge increase in the use of Facebook and Instagram. In the last three months of last year, the social media giant showed a profit of $ 3.88 per share on revenue of $ 28.07 billion versus $ 3.22 per share and $ 26.44 billion generated by Refinitive is predicted. Although total monthly users in the U.S. and Canada declined steadily, Facebook’s total user base in its main apps, Instagram, Messenger, and WhatsApp, grew to 3.30 billion monthly from 3.21 billion in the previous quarter. Facebook reported another $ 885 million in revenue, up 156% from 2019. While not a big part of the overall pie, it is now still a striking segment due to Oculus’ virtual reality sales headphones and the Portal video chat devices. Due to strict home directions, the use and sales of these products have increased tremendously. Stock Rover data show that this is the third quarter that the US technology conglomerate has beaten expectations in a row. FB shares are therefore also a favorite among hedge fund managers. Charles Payson “Chase” Coleman III, an American billionaire hedge fund manager and investor, is a long-term supporter of the company. Coleman’s Tiger Global fund still owns more than 6.3 million shares in FB. Shares trade at 25.9 times price-to-earnings. Aphria (APHA) Source: Shutterstock Yield of three months: 161.85% Just like alternative energy, marijuana stocks are enjoying a bit of a renaissance, now President Joe Biden is in office. Former President Donald Trump has taken a tougher stance on federal legalization. As a result, cannabis supplies rose to great heights in the run-up to its inauguration. Granted, the enthusiasm has waned a bit. Federal legalization is not a simple matter. And there are several battles yet to be fought in Congress. However, hedge fund activity is increasing. And it will remain so in the foreseeable future, if the mega-merger between Aphria and Tilray (NASDAQ: TLRY) is taken into account. During the fourth quarter, David Siegel and John Overdeck’s Two Sigma Investments started a 3.35 million stake in APHA. Due to the merger arbitrage opportunity, investors and hedge funds will continue to open new positions as the share price rises in the run-up to the combination. 8 small-cap stocks with enough credit uptake Once that happens, stocks will cool down. Robinhood traders are also hip in this trend. That’s why marijuana stocks like APHA regularly take it in to buy stocks. Palantir Technologies (PLTR) Source: Sundry Photography / Shutterstock.com Three Month Yield: -2.04% Our final choice is a bit controversial. PLTR shares have generated quite a bit of upside, and most of them are not about its operations. The big data analysis founded by Peter Thiel has a close relationship with the U.S. military and the Immigration and Customs Enforcement (ICE). It does not suit several members of Congress. Purely from an investment standpoint, however, it gives the company access to smooth, recurring cash flow. Plus, strong ties with the country’s military establishment is something every defense contractor wants. Since its debut via direct listing, the shares have been tearing apart. Considering the client list, I’m not surprised why this is so. Hedge funds also agree with this sentiment. Daniel Loeb’s Third Point, Steven Cohen’s Point72 Asset Management and Anchorage Capital Group all acquired interests in the company last year. At the date of publication, Faizan Farooque has no (direct or indirect) positions in the securities mentioned in this article. Faizan Farooque is a contributing writer for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in stock market analysis and was a former data journalist at S&P Global Market Intelligence. More from InvestorPlace Why everyone invests in 5G, all wrong. It does not matter if you have $ 500 savings or $ 5 million. Do it now. The best stock voter unveils its next 500% potential winning product that NIO found for $ 2. Say Buy It Now. The reported 7 Robinhood shares that even billionaires want in their portfolios first appear on InvestorPlace.