5 Most Popular Stocks on Robinhood

Below we present the list of 5 Most Popular Stocks on Robinhood. For our methodology and a more comprehensive list please see 10 Most Popular Stocks on Robinhood.

5. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Shareholders: 132

Robinhood Popularity Ranking (Q1 2021 – Q2 2023): 1^st (58 points)

Stock Performance (January 1, 2021 – June 6, 2023): +38.4%

Hedge funds have never been quite as bullish on Apple Inc. (NASDAQ:AAPL) as the general public, as evidenced by Apple’s position atop the Robinhood popularity charts, while it doesn’t even crack hedge funds’ top 10 stock picks. In this case, the retail investors came out the winners, as Apple shares have gained a solid 32% since the beginning of 2021.

Investors have been particularly bullish on Apple Inc. (NASDAQ:AAPL) this year thanks to the potential for a sturdy demand rebound in China as well as the company’s extremely strong gross margin guidance for its current fiscal year, which is being driven in part by the growth of Apple’s much more profitable services segment. That should insulate Apple’s bottom line from any potential decline in iPhone sales going forward, which is certainly a possibility given the global smartphone market has been declining in recent quarters.

Alger Spectra Fund laid out the details of Apple Inc. (NASDAQ:AAPL)’s fiscal Q1 results in the fund’s Q1 2023 investor letter:

“Apple Inc. (NASDAQ:AAPL) is a leading technology provider in telecommunications, computing, and services. Apple’s iOS operating system is the company’s unique intellectual property and competitive strength. This software drives particularly tight engagement with consumers and enterprises, which is fostering the growing purchase of high margin services like music, apps, and Apple Pay. While iPhone sales were down year-over-year (YoY). services revenues grew 7% YoY which was slightly above analyst estimates. Company earnings were also better-than-anticipated due to lower input costs, such as memory chips and cost control initiatives. Aside from production disruptions, negative sentiment had also weighed on shares as investors questioned how an economic slowdown would affect consumer demand for Apple products in 2023. However, management projected an acceleration in earnings for the fiscal first quarter, where they noted that iPhone and services growth should remain strong, along with encouraging impacts around product mix, lower input costs, and continued cost controls.”