One of the most remarkable developments that sprouted during the onset of the novel coronavirus pandemic was how quickly longstanding paradigms changed. Prior to the global health crisis, financial analysts warned young people that they weren’t investing in equities. However, the popularity of Robinhood (NASDAQ:HOOD) led to the phenomenon of so-called Robinhood stocks to buy.
It turns out, young people were not much different from older generations. Millennials and Generation Z cared plenty about wealth generation. Apparently, they just needed a little gamification to inspire them. Of course, Robinhood is a master of emotional encouragement (some might call it manipulation), stroking egos and transaction orders. However, the arguments underlying Robinhood stocks aren’t as crazy as you might initially believe.
Indeed, the top 50 opportunities listed on the StonksNews website feature a wide variety of ideas. Yes, you do have your speculative plays like Sundial Growers (NASDAQ:SNDL). At time of writing, SNDL was at the top of the order. However, among these popular Robinhood stocks, you have companies like Microsoft (NASDAQ:MSFT), which this crowd might consider geriatric. Nevertheless, it features highly, suggesting a method to the madness.
Honestly, you might want to reconsider how you label those who follow social media guidance regarding Robinhood stocks to buy. A vast majority of these ideas I can see myself supporting irrespective of market circumstances. For instance, Coca-Cola (NYSE:KO), which is listed at No. 48, is an excellent consumer staples idea that’s appropriate for almost any investor.
With the final month of the year coming up, many investors will undoubtedly look to reposition their portfolio for 2022 and beyond. In that vein, here are my thoughts on the best Robinhood stocks to buy for December.
- Ford (NYSE:F)
- Walmart (NYSE:WMT)
- Meta Platforms (NASDAQ:FB)
- AMC (NYSE:AMC)
- Plug Power (NASDAQ:PLUG)
- Uber (NYSE:UBER)
- Peloton (NASDAQ:PTON)
While I believe that followers of popular Robinhood stocks deserve more credit than they usually receive from mainstream media coverage, it’s also important to independently perform your due diligence. Before making your final decision on any stock, make sure it fits with your strategy and risk-reward profile.
Robinhood Stocks: Ford (F)
Typically, I don’t like to put publicly traded securities that I own top of any lists of opportunities to consider. However, with American automaker Ford, I’ll make an exception. The social media crowd love the company, making it one of the most popular Robinhood stocks to buy. And I’m particularly proud of this idea because I asked readers to assess it and I put my money where my mouth is.
Believe me, that’s saying a lot because personally, I’m not a big fan of American cars. However, when I saw that Ford was developing the Mustang Mach-E, an electric vehicle crossover, I had a strong feeling that F stock was going to be a winner. So far, I’ve been proven correct, with Ford posting a year-to-date performance of almost 128% heading into the final weekend before Thanksgiving.
Primarily, the Mach-E provides a much-needed alternative to the EVs that Tesla (NASDAQ:TSLA) has been pumping out. No offense to any TSLA fans but the company’s vehicles tend to look the same. Certainly, automotive consumers — especially of more premium vehicles — want to stand out and Ford gives them that opportunity.
That F also happens to attract a big crowd among fans of Robinhood stocks is icing on the cake.
Although an always relevant name among Robinhood stocks, Walmart is a tricky one at this juncture. As the king of big-box retailers, I think you have to respect WMT, no matter what circumstance it finds itself in. Further, Walmart benefits from fortuitous timing. As I mentioned in my interview with CGTN America, the yearlong lockdown and social mitigation measures have given American consumers cabin fever.
And we’re not unique in this regard. Plenty of people are sick and tired of the pandemic and associated mandates, such as social distancing. Therefore, people are ready to go out and reclaim their normal lives, which includes mundane things like shopping at Walmart.
But like I said, WMT is one of the toughest Robinhood stocks to navigate because so much retail originates from China. Here’s a source that estimates 70% to 80% of Walmart’s merchandise come from Chinese suppliers. Further, President Biden is apparently considering a diplomatic boycott of the 2022 Beijing Olympics. That’s going to be problematic, considering that he made some headway with his recent virtual summit with Chinese President Xi Jinping.
Still, the bottom line may be that American consumers are sitting on $2.7 trillion in crisis savings. That’s a huge plus for WMT.
Robinhood Stocks: Meta Platforms (FB)
Another interesting idea among Robinhood stocks to buy is Meta Platforms. Formerly known as Facebook, Meta Platforms rebranded itself in late October of this year to reflect CEO Mark Zuckerberg’s long-term ambitions. According to The Verge, the “rebrand is about solidifying the social media giant as being about the metaverse, which Zuckerberg sees as the future of the internet.”
Now, many folks debate what the metaverse means. The Verge describes it as “an expansive, immersive vision of the internet taken from the pages of sci-fi novels like Snow Crash and Ready Player One.” For those that haven’t seen these films, imagine the internet as a global community connected through information. But note that this information requires a device-based intermediary: a computer or mobile device.
Basically, the metaverse is the next step in the internet revolution where you become your own intermediary. Of course, we’re not quite there yet but through platforms like virtual and augmented reality, the user can get closer and closer to becoming personally integrated with the internet.
Honestly, I find the concept a little kooky but so many are eating this stuff up. Therefore, FB is worth a look.
One of the original meme trades that catapulted the concept of Robinhood stocks to the forefront, AMC Entertainment is perhaps the very definition of fortuitous, as the company was struggling since the middle of the last decade and that’s no longer the case.
With streaming platforms dominating, along with plentiful at-home entertainment options like video games, the box office was losing ground with young adult audiences. Then, the coronavirus struck and you’d be forgiven to think it was lights out for the company. Due to government restrictions on non-essential activities, there was nothing that management could do except hope for the best.
Well, there was another approach: pray to the meme gods. Out of nowhere, AMC stock skyrocketed from the early 2021 doldrums, in no small part to meme traders who wanted revenge against bearish hedge funds — the same hedge funds that they perceived as destroying their parents’ lives during the Great Recession.
Another intriguing tidbit: since early August, AMC has generally charted a series of higher lows. Now, if the meme traders can convince management to pay their general managers, that’d be something!
Robinhood Stocks: Plug Power (PLUG)
A company with a relatively long history, most of the narrative behind Plug Power has been one of aspirations denied. Back during the crazy dot-com bubble, PLUG stock briefly commanded a share price in four-digit territory. But obviously, that lofty status evaporated, with the underlying company struggling to forward its hydrogen fuel-cell technology.
Then, during the midst of the great investment shift — brought largely by the wave of worker bees operating remotely along with those ever helpful stimulus checks — PLUG became one of the heavily hyped Robinhood stocks. By late January of this year, shares closed up above $70, a multi-decade record. Still, like prior plug rallies, this one eventually faded.
Not to put readers through another rollercoaster ride but PLUG again ranks among the most popular Robinhood stocks. Per a Barron’s report, “Plug Power, which makes hydrogen fuel cell powered fork lifts, plans to make hydrogen-powered heavy-duty trucks while manufacturing and distributing the hydrogen gas required for its transportation products.”
Personally, I’m leery of these emotionally driven speculative names but PLUG might be good for a sizable December pop for short-term traders.
On StonksNews’ top 50 list of Robinhood stocks to buy, ride-sharing giant Uber was the caboose at time of writing. Therefore, it’s quite possible that by the time you read this, it could have dropped out of the top 50. Nevertheless, even if it experiences a bout of volatility, it might not fall that far.
Primarily, bullish investors can take heart that ride sharing has become a much more ingrained practice in American society. According to a 2019 Pew Research Center report, ride-sharing services were mostly popular among young people, as you would expect. However, the 50-years-plus demographic experienced the greatest percentage growth in terms of survey respondents who hailed a ride-sharing service at least once.
Logically, the narrative took a hit because of the coronavirus pandemic. But as we have become acclimated to the crisis, UBER might make a comeback. It’s risky but since the spring doldrums of 2020, shares have printed a series of higher lows. This suggests, though it’s not guaranteed, that UBER could swing higher.
As well, the company’s Uber Eats division could enjoy more demand, especially as consumers are sitting on that aforementioned $2.7 trillion worth of pandemic savings.
Robinhood Stocks: Peloton (PTON)
Arguably one of the riskiest Robinhood stocks available, I was surprised to see Peloton ranked so highly on StonksNews’ list at No. 8. As you know, Peloton was one of the top pandemic winners as its home fitness bike fit perfectly into the quarantine lifestyle.
Indeed, you could have made a case that Peloton was a healthcare-related investment. According to Harvard Health Publishing, “39% of patients gained weight during the pandemic, with weight gain defined as above the normal fluctuation of 2.5 pounds. Approximately 27% gained less than 12.5 pounds and about 10% gained more than 12.5 pounds, with 2% gaining over 27.5 pounds.”
For those that didn’t gain weight — or better yet, lost it — they might have burned away the calories on their Peloton bikes.
However, as the New York Times pointed out, shares of pandemic darlings have tumbled as the health threat faded. With people largely resuming their normal activities, does PTON have a future?
According to Peloton CEO John Foley, the company’s belief that fitness will move to the home remains unchanged. He might be onto something, considering that the work-from-home initiative might not be permanent. If so, people will look to other means to recapture time, including canceling their gym membership in favor of home fitness.
On the date of publication, Josh Enomoto held a LONG position in F and AMC. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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.