Say what you want about popular trading app Robinhood, but it got people — particularly younger ones — to do something they’ve yet to adopt before the pandemic: participate in the investment markets. However, thanks to Robinhood’s intuitive and attractive interface, buying publicly traded securities have become one of 2020’s hottest trends. Not surprisingly, then, many of these traders are eager to learn about new stocks on the platform.
Taking a look at the top 100 list of Robinhood’s most popular offerings, you’ll see familiar names that resonate with millennials, such as Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT). As well, you’ll notice companies that have made a significant impact on this year’s affairs, such as Moderna (NASDAQ:MRNA). Indeed, it’s hard to pinpoint what kind of companies Robinhood traders prefer since the list is diverse.
At the same time, that’s exactly what you want to see. With a well-rounded portfolio, you’re better able to absorb volatility. And that volatility may be around the corner, depending on the state of the economy along with the upcoming election. Going along with the sentiment of diverse listings, the latest offering of new stocks on Robinhood cover multiple industries — presenting the next generation of investors with several roads to potential profitability.
Certainly, Robinhood has its critics. Primarily, the gamified platform which attracts so many has drawn fire from those who believe it’s irresponsible to make light of a concept that has strong financial implications. While I won’t go into specific details, the trading app isn’t without its serious controversies.
Ultimately, though, investing, especially at a younger age, is one of the best ways to wealth building. And in my opinion, it’s better to have the option to invest than not. With that in mind, here are new stocks to the platform that you can buy on Robinhood today:
- Rackspace Technology (NASDAQ:RXT)
- ORIC Pharmaceuticals (NASDAQ:ORIC)
- Open Lending (NASDAQ:LPRO)
- Kingsoft Cloud (NASDAQ:KC)
- Li Auto (NASDAQ:LI)
- Albertsons Companies (NYSE:ACI)
- ZoomInfo Technologies (NASDAQ:ZI)
- Slack Technologies (NYSE:WORK)
- CureVac (NASDAQ:CVAC)
Better yet, even beyond this pandemic, Robinhood should make a lasting impact on young investors. It’s not just that an overwhelming majority of millennials own smartphones. Rather, they’re on social media, sharing their experiences — including their investment journeys — with their peers. That’s ultimately a net positive for Wall Street, while providing extra sets of eyeballs on these new stocks.
Robinhood Stocks to Buy: Rackspace Technology (RXT)
Well before the novel coronavirus pandemic, the concept of cloud computing has been integral in the business community. But with the crisis’ disruption, there’s never been a better time for companies to integrate their businesses on this advanced innovation. And that’s where Rackspace Technology comes in. One of the new stocks you can buy today on Robinhood, Rackspace specializes in multi-cloud services.
Multi-cloud, or the use of different public clouds to support specific applications, offers client corporations significant flexibility and efficiencies. And with Rackspace, the company provides solutions across multiple functionalities, including designing/building applications, data management, cloud security and consultation services.
Due to the sudden demand for work-at-home capacities, RXT stock has enjoyed significant attention from speculators. Furthermore, because a coronavirus vaccine likely won’t be available until the end of this year at the earliest, the culture of the new normal will probably extend into next year.
Still, Covid-19 is a double-edged sword in that it also impacts Rackspace Technology’s clients. Ultimately, this is an interesting name to watch among Robinhood’s new stocks but be aware of potential volatility.
ORIC Pharmaceuticals (ORIC)
Obviously, as the pandemic continues to be the biggest issue of 2020, pharmaceutical firms have made up a significant portion of Robinhood’s new stocks. However, ORIC Pharmaceuticals is a breath of fresh air, having no relation to Covid-19 vaccines.
Don’t get me wrong — we need all hands on deck to develop vaccines and treatments for the coronavirus. But if I hear about another company that has pivoted to vaccine development, I might throw my computer across the living room in frustration.
Well, that probably wouldn’t be a smart idea. Fortunately, though, ORIC stock isn’t testing my patience in that regard. The meaning of ORIC is “overcoming resistance in cancer.” And basically, ORIC specializes in cancer therapeutics resistance, which can stymie patients due to shortening or even negating the effectiveness of traditional cancer treatments.
In other words, ORIC’s flagship has the potential to make existing cancer therapies longer lasting and more effective. It’s a distinct approach to the pharmaceutical race, which often pits companies against each other. For that, I believe ORIC stock is worth a look.
However, keep in mind that among the new stocks on Robinhood, ORIC has been volatile. True, the wildness has eased up recently. But just be aware of the risks before proceeding.
Robinhood Stocks to Buy: Open Lending (LPRO)
Due to the severe economic impact of the Covid-19 crisis, many lenders find themselves in an untenable situation. Logically, if you’re going to lend money to clients, those folks need to be credit worthy. But the financial devastation from the coronavirus has made that task much more difficult.
Plus, the lending game can be cruel. If you play it safe too much, you won’t make money from your loans. Then again, if you lend to the wrong clients, you could be facing financial trouble yourself.
Fortunately, technology has dramatically improved the lives of many and it’s here where Open Lending comes into view. As you know, risk assessment is a crucial task for lenders. However, it’s difficult to know if you’re making the right decisions based on multiple variables. As well, bias can creep into such assessments, leading to wrong decisions or in the worst-case scenario, accusations of discrimination.
With Open Lending’s data analytics platform, though, the assessments are conducted through the numbers. Therefore, the human element of bias is significantly mitigated. This allows Open Lending’s clients to maximize their lending business while minimizing risk, thus boosting the case for LPRO stock.
Furthermore, individual clients benefit because they receive the best possible loan package that their risk profile allows. It’s a win-win, again lifting the case for LPRO stock. The only problem? Not only is this one of Robinhood’s new stocks, it’s also one of the most popular.
Personally, I love the idea here. However, I’d like to see shares cool down a bit before jumping aboard.
Kingsoft Cloud (KC)
Out of the new stocks available today on the popular trading app, Kingsoft Cloud has the most questions. On one hand, the company’s website bills itself as a leading cloud services provider. As I mentioned for Rackspace Technology above, this is an incredibly relevant sector.
Also, Kingsoft has extensive experience in a broad range of digital industries, including government, finance, healthcare, Internet of Things, education, even video games and media. Plus, the company’s expertise in edge computing, which delivers data closer to the source of demand, will likely play a significant role due to Covid-19.
That’s the good news for KC stock. The not so great news, however? It’s headquartered in Beijing, China.
Of course, I have nothing against China. But let’s be real — the nasty electoral race that we’re experiencing revolves in large part around China. Moreover, if President Donald Trump wins a second term, that could spell trouble for KC stock and other Chinese companies. Something tells me that he is not in any mood to offer the world’s second-biggest economy an olive branch.
Robinhood Stocks to Buy: Li Auto (LI)
Okay, many of you may be feeling the same way I do about electric vehicle (EV) investments. Seemingly, every other week, we’re treated to news about an EV company making its market debut. Of course, I’m being facetious. Still, there used to be a time when Tesla (NASDAQ:TSLA) was the only real name to consider. Now, we have an abundance of options.
That said, making the list of new stocks on Robinhood is Li Auto. As a Beijing-based EV maker, Li naturally draws comparisons with Nio (NYSE:NIO). For me, one of the distinguishing factors that makes LI stock interesting is the underlying Li Xiang One SUV. In my view, I think it’s a gorgeous SUV that makes a statement.
Furthermore, it’s very smart that Li Auto is focusing on SUVs. According to a 2018 press release from General Motors (NYSE:GM), once consumers get a taste of the SUV, they never go back to sedans. I can see why, considering that people love the platform’s practicality.
Another factor supporting LI stock is the fewer parts required for EV manufacturing. That gives Li Auto and other EV makers a significant advantage in cutting the expertise gap with traditional automotive giants.
Albertsons Companies (ACI)
When the pandemic first hit us, panicked Americans scrambled to the grocery stores for obvious reasons. What wasn’t so clear was the motivation for the scale of the purchases, such as obscene amounts of toilet paper. Nevertheless, for companies like Kroger (NYSE:KR), it was money in the bank. For once, grocers were the sexy names on Wall Street.
Unfortunately, this narrative hasn’t quite panned out for Albertsons Companies, one of the new stocks you can buy on Robinhood. Part of that could be the timing. With most Americans finally adopting the protocol of the new normal, the intensity of grocery demand died down. Therefore, both Kroger shares and ACI stock have disappointed stakeholders recently.
Nevertheless, the fact that President Trump came down with Covid-19 may have given his millions of supporters a shock to the system. Unreservedly, I wish the President and First Lady a quick and complete recovery. However, I’ve got to point out that if the coronavirus can infect the world’s most protected person, there’s at least a possibility that a second wave could impact us.
Therefore, I’m very curious about ACI stock. The present weakness could be a “sandbagging” opportunity to exploit.
Robinhood Stocks to Buy: ZoomInfo Technologies (ZI)
As one of the more perplexing new stocks on Robinhood, I see ZoomInfo Technologies going in either direction. On the surface, I believe that ZoomInfo’s marketing solutions are incredibly relevant. Specifically, the company operates a cloud-based information platform that it pitches to sales professionals so that they can effectively target high-value conversion opportunities.
Another factor that supports ZI stock is the new normal. Without the ability to conduct business in person, technological platforms have never been more important. Furthermore, virtually every organization should understand this; therefore, ZoomInfo’s services are arguably much more palatable during the pandemic than before it. Also, with many people potentially joining the gig economy, ZoomInfo offers convenience and networking opportunities.
However, there is another side to this story. For one thing, the pandemic could be a headwind for ZI stock. With many companies losing business across many industries, the demand for networking, at least in certain sectors, will take a hit. Plus, as a recipient of business marketing pitches myself, I’d prefer that companies like ZoomInfo not exist.
But that’s just my bias seeping in. If you want such a company on your portfolio, it’s available now on Robinhood.
Slack Technologies (WORK)
Unless you’re actually tried Slack Technologies’ platform, it’s hard to fully appreciate the company’s workflow innovation. Among the first questions to come up regarding WORK stock is this: isn’t regular old email just as effective as Slack? In a word, no.
While email is not going away, it’s rather abrupt, like German people. Either you receive email or you don’t. And that means it’s very easy for your inbox to pile up with a litany of messages. Email is also very democratic in that each email in your inbox (not including those that are automatically sent to your spam box) technically carries as much importance as any other.
As an aside, this is why the U.S. has an electoral college system. Otherwise, by merely flooding new eligible voters into the nation, you can sway every election. In a similar vein, if you want to get someone’s attention via email, you can just bombard them with messages.
Fortunately, Slack puts an end to this nonsense by segmenting communications into separate channels, which can then be segmented into folders. Information can be viewed by other members of your team, making management and delegation much more efficient. Hence, I see WORK stock as a viable play both now and post-pandemic.
Robinhood Stocks to Buy: CureVac (CVAC)
Unsurprisingly, a Covid-19 vaccine play has made it onto the list of Robinhood’s new stocks to consider. Here, we have CureVac, a German biopharmaceutical company that is focused on developing therapies using messenger RNA. Because of this expertise in nucleic-acid-based therapies, CVAC stock has been one of the hottest market debuts of 2020.
Specifically, the specialty in mRNA therapies is compelling because of this methodology’s manufacturing advantage. Basically, it’s much easier to “cook” up these things in a laboratory compared to other approaches, such as subunit vaccines. Furthermore, CureVac claims to have the capability to manufacture its vaccines on a “huge scale.”
Still, CVAC stock isn’t without its drawbacks. According to CureVac’s website, its Covid candidate is still in Phase 2 trials, while other vaccine players have entered Phase 3. Also, it’s important to note that mRNA vaccines are experimental. No nucleic-acid-based vaccine has been approved by the Food and Drug Administration due to issues such as unreliability.
That’s not to say that CureVac can’t be the first. Certainly, attention (and money) directed toward advanced vaccine development is a positive. Nevertheless, investors should tread carefully as competing candidates look more viable at this moment.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.