Tuesday, September 21, 2021

Move Over, Tesla: There's a New Most-Held Stock on Robinhood - Motley Fool

Last updated Tuesday, August 24, 2021 06:06 ET , Source: NewsService

In a little over four months, when the curtain closes on 2021, it'll undoubtedly be remembered as the year retail investors asserted themselves on Wall Street. Even though retail investors have been putting their money to work on Wall Street for more than a century, they've never had such a demonstrable effect on equity prices as they have since January.

In particular, retail investors have flocked to Robinhood (NASDAQ:HOOD), the online investing app that went public less than four weeks ago. As market volatility picked up in 2020 and early 2021, Robinhood had little issue coercing retail investors to join its platform.

Tesla has long been the most-held stock on Robinhood

Arguably the best thing about Robinhood is its transparent leaderboard. The company regularly updates the 100 most-held stocks on its platform, thereby providing existing clients with a resource to see what other retail investors have been buying or holding for their own portfolios.

For the past four months, electric-vehicle (EV) manufacturer Tesla Motors (NASDAQ:TSLA) had consistently held the top spot on Robinhood's leaderboard -- and it's not hard to understand why.

To begin with, Robinhood investors love momentum stocks. Between May 2019 and January 2021, Tesla's share price catapulted from the split-adjusted mid-$30 level to an intraday high of about $900 a share. Time and again, any dip in Tesla's share price over this stretch proved to be a buying opportunity for momentum investors. When Tesla ...

Read Full Story: https://www.fool.com/investing/2021/08/24/move-over-tesla-new-most-held-stock-on-robinhood/

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