Author Topic: Join them or Avoid them? Robinhood favorite stocks  (Read 803 times)

MustacheAndaHalf

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Join them or Avoid them? Robinhood favorite stocks
« on: January 14, 2021, 09:25:35 AM »
I might want to avoid Robinhood favorite stocks, but it's difficult:
https://robinhood.com/collections/100-most-popular

For example, I hold call options on Spirit Airlines, which 50% of Robinhood investors have also bought.  Slightly more popular is Delta Airlines (55% owned), which Warren Buffet dumped last year at a big loss, if I recall correctly.

Robinhood account holders bought Tesla (32%), and also Ford (22%).  I'm really curious to know how much those investors overlap!  They seem like opposites.

EDIT/CORRECTION: The 55%, 32%, 22% are stock analyst ratings.  So 55% means 55% of stock analysts recommend the stock.  It's weird to see a top 100 owned stocks with percentages - and they have nothing to do with ownership percentage.
« Last Edit: January 15, 2021, 07:02:31 AM by MustacheAndaHalf »

bacchi

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Re: Join them or Avoid them? Robinhood favorite stocks
« Reply #1 on: January 14, 2021, 09:50:52 AM »
I might want to avoid Robinhood favorite stocks, but it's difficult:
https://robinhood.com/collections/100-most-popular

For example, I hold call options on Spirit Airlines, which 50% of Robinhood investors have also bought.  Slightly more popular is Delta Airlines (55% owned), which Warren Buffet dumped last year at a big loss, if I recall correctly.

Robinhood account holders bought Tesla (32%), and also Ford (22%).  I'm really curious to know how much those investors overlap!  They seem like opposites.

Are these informed investors or just YOLO/FOMO speculators with excess money?

Edit: Is this the same group that bought SIGL based on Elon's tweet?

Stimpy

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Re: Join them or Avoid them? Robinhood favorite stocks
« Reply #2 on: January 14, 2021, 11:12:16 AM »
I might want to avoid Robinhood favorite stocks, but it's difficult:
https://robinhood.com/collections/100-most-popular

For example, I hold call options on Spirit Airlines, which 50% of Robinhood investors have also bought.  Slightly more popular is Delta Airlines (55% owned), which Warren Buffet dumped last year at a big loss, if I recall correctly.

Robinhood account holders bought Tesla (32%), and also Ford (22%).  I'm really curious to know how much those investors overlap!  They seem like opposites.

Meh, I glance at this list every now and then, and there are some good ones...  VOO for instance would be one you might consider, WMT, MSFT, V etc, are some of the ones, I would think that shouldn't give you too much pause.   But then again XPEV, NIO OGI, etc are probably bad buys.  (I have no real research to say either way.)   

Yea, I agree in general avoid these types of list.  Lots of it is trying to push FOMO by saying, "Well, everyone else is doing it why not you?"

But given the question and where your at I suspect most will also say avoid it, stick with things like VOO, etc.  The FOMO of these just isn't worth it for the most part.

Is this the same group that bought SIGL based on Elon's tweet?
Yup, though I don't know if those ever made this list, but I do know it made the "People are buying this NOW list", which I personally avoid like the plague.

MustacheAndaHalf

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Re: Join them or Avoid them? Robinhood favorite stocks
« Reply #3 on: January 15, 2021, 07:05:53 AM »
Are these informed investors or just YOLO/FOMO speculators with excess money?
Edit: Is this the same group that bought SIGL based on Elon's tweet?
One correction: the % number is stock analyst recommendation.  So for Spirit Airlines, 50% of analysts like the stock (they didn't in April!!  Sorry, couldn't resist).

I think it's mostly new and younger investors, since it's a new platform aimed at mobile phones.  That list ignores companies that went bankrupt, where I strongly suspect Robinhood investors helped me.  Someone bought heavily after bankruptcy of OAS, HTZ and one I'm forgetting.

MustacheAndaHalf

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Re: Join them or Avoid them? Robinhood favorite stocks
« Reply #4 on: January 15, 2021, 07:20:21 AM »
I might want to avoid Robinhood favorite stocks, but it's difficult:
https://robinhood.com/collections/100-most-popular

Meh, I glance at this list every now and then, and there are some good ones...  VOO for instance would be one you might consider, WMT, MSFT, V etc, are some of the ones, I would think that shouldn't give you too much pause.   But then again XPEV, NIO OGI, etc are probably bad buys.  (I have no real research to say either way.)   

Yea, I agree in general avoid these types of list.  Lots of it is trying to push FOMO by saying, "Well, everyone else is doing it why not you?"

But given the question and where your at I suspect most will also say avoid it, stick with things like VOO, etc.  The FOMO of these just isn't worth it for the most part.
Maybe the lack of analysts covering ETFs is a flaw, but I'd agree with VOO and SPY (both on the list) being good investments.  I prefer VTI / ITOT myself, which avoids companies dropping out during a crash and re-entering during the recovery.

I recall stories about NKLA (also on the list - I don't own it) rolling a truck downhill, filming it, and then getting caught.  That's not how you demonstrate an EV truck - with no motor.  There's some bad ideas on that list.

But I wonder, as you suggest, how often they find a recovery story before stock analysts do.  I think Boeing fits that description, being down both for the 737 MAX scandal and Covid hurting demand for new airplanes.  There's an implicit "Congress put" on the stock - Boeing is a major defense contractor.  If they go, can the U.S. build fighters for the air force?  So I see several reasons to own BA, and that's on the list.  I haven't bought yet, but I'm keeping my eye on it.

ChpBstrd

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Re: Join them or Avoid them? Robinhood favorite stocks
« Reply #5 on: January 15, 2021, 07:32:00 AM »
How do Robinhood analysts compare to other analysts? More or less bullish?

Analysts are less likely to cover stocks they are bearish on, so maybe only 50% recommending a stock says they are relatively bearish.

MustacheAndaHalf

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Re: Join them or Avoid them? Robinhood favorite stocks
« Reply #6 on: January 15, 2021, 10:39:28 AM »
I think the "analyst percentage" had nothing to do with Robinhood, which confused me the first few times I saw it.  I believe it's the percentage of analysts with a "buy" recommendation.  Because some analysts are afraid of the wrath of companies, they may put "hold" when they mean sell ... so the under 50% crowd could be unfavorable stocks.

I did invest in Boeing after giving it a closer look.

PDXTabs

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Re: Join them or Avoid them? Robinhood favorite stocks
« Reply #7 on: January 15, 2021, 11:49:47 AM »
VOO, VTI, and SPY are on that list.