In this article, we discuss 10 stocks trending on Robinhood.
Robinhood Markets, Inc. (NASDAQ:HOOD) is a California-based financial services company that has been around since 2013, but gained mainstream recognition in the pandemic years. The company came into the spotlight when retail investors flocked to the trading platform for its commission-free transactions.
It initially became famous for allowing investors to trade meme stocks such as AMC Entertainment Holdings, Inc. (NYSE:AMC) and GameStop Corp. (NYSE:GME).
Previously, Robinhood allowed 30 minutes for trading pre-market on its platform, and two hours after the close. As customers demanded more trading hours to accommodate their schedules, the company announced on March 29 that it now offers trading from 7 a.m. to 8 p.m. ET. Robinhood’s monthly active users increased 48% to 17.3 million in December 2021, compared to 11.7 million in December 2020. Revenue for 2021 was up 89% year-over-year to $1.82 billion, compared to $959 million in 2020.
Robinhood remains an active trading platform for stocks and cryptocurrencies alike. Some of the stocks that have been trending on the platform lately include Alphabet Inc. (NASDAQ:GOOG), NVIDIA Corporation (NASDAQ:NVDA), and Exxon Mobil Corporation (NYSE:XOM), among others discussed at length ahead.
Our Methodology
We carefully observed the Robinhood platform to assess the stocks that were trending among investors over the last few weeks. We have mentioned the analyst ratings and hedge fund sentiment for each stock.
Data from 900+ elite hedge funds tracked by Insider Monkey at the end of December 2021 was used to identify the number of hedge funds that hold stakes in each firm.
Stocks Trending on Robinhood
10. Alpha Metallurgical Resources, Inc. (NYSE:AMR)
Number of Hedge Fund Holders: 30
Alpha Metallurgical Resources, Inc. (NYSE:AMR) was incorporated in 2016 and is headquartered in Bristol, Tennessee. It operates as a mining company that sells thermal coal in Virginia and West Virginia.
On March 7, Alpha Metallurgical Resources, Inc. (NYSE:AMR) reported its Q4 results, posting earnings per share of $13.45, outperforming estimates by $2.01. Revenue over the period came in at $828.22 million, exceeding analysts’ predictions by $102.47 million.
Riley analyst Lucas Pipes upgraded Alpha Metallurgical Resources, Inc. (NYSE:AMR) on March 10 to Buy from Neutral with a price target of $155, up from $143, implying 28% upside. The analyst was impressed with Alpha Metallurgical Resources, Inc. (NYSE:AMR)’s operational execution over the past several months and believes the company is set up for a “significantly improved” 2022.
Among the hedge funds tracked by Insider Monkey, 30 funds were bullish on Alpha Metallurgical Resources, Inc. (NYSE:AMR), compared to 19 funds in the previous quarter. Alta Fundamental Advisers is the largest shareholder of the company, with more than 1 million shares worth $64 million.
In addition to Alphabet Inc. (NASDAQ:GOOG), NVIDIA Corporation (NASDAQ:NVDA), and Exxon Mobil Corporation (NYSE:XOM), Alpha Metallurgical Resources, Inc. (NYSE:AMR) is a notable stock that was recently trending on Robinhood.
9. Palantir Technologies Inc. (NYSE:PLTR)
Number of Hedge Fund Holders: 33
Palantir Technologies Inc. (NYSE:PLTR) is an American software company that deals in big data analytics and intelligence services for governments and private companies.
On February 22, Palantir Technologies Inc. (NYSE:PLTR) announced that the Centers for Disease Control and Prevention awarded it a contract worth $5.3 million for a duration of six months. The contract will enable the Centers for Disease Control and Prevention to act as a reliable technology partner in the government’s response to COVID-19 by supporting federal supply chain efforts.
Piper Sandler analyst Weston Twigg initiated coverage of Palantir Technologies Inc. (NYSE:PLTR) on March 9 with an Overweight rating and a $15 price target. According to the analyst, the company is enhancing its customers’ operational efficacy by pairing software, artificial intelligence, and data analytics into “powerful, central IT solutions”. The analyst noted that the Ukraine war might lead to early intelligence technology adoption among the American and international government clients.
In the fourth quarter of 2021, 33 hedge funds were bullish on Palantir Technologies Inc. (NYSE:PLTR), compared to 35 funds in the prior quarter. The total stakes held in Q4 amounted to $1.2 billion. ARK Investment Management is the leading shareholder of the company, owning a position worth $642.5 million.
Here is what Tao Value has to say about Palantir Technologies Inc. (NYSE:PLTR) in its Q4 2021 investor letter:
“We have no new position this quarter and have made below changes to our portfolio. We also sold Palantir (PLTR) as I identified it subject to high retail bubble risk (using above method) and are not part of our core “Mindful Compounder” holdings.”
8. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)
Number of Hedge Fund Holders: 33
ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) is an Israel-based company that provides container shipping and ocean cargo services worldwide. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) has been trending lately on Robinhood, and the stock has gained over 30% year-to-date.
The company published its fourth quarter results on March 9, posting earnings per share of $14.16, outperforming market consensus by $0.96. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)’s revenue for the period jumped roughly 155% year-over-year to $3.47 billion, topping analysts’ consensus estimates by $101.23 million.
On March 9, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) declared a $17.00 per share dividend, which is payable on April 4 to shareholders of record March 23. The company distributed 50% of its 2021 net income to shareholders.
Jefferies analyst Randy Giveans on March 10 raised the price target on ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) to $120 from $100 and reiterated a Buy rating on the shares after the company’s earnings beat and massive dividend payout, which was at the top end of its guided 30-50% of fiscal year net income dividend policy. The analyst also increased his 2022 and 2023 EPS estimates following the Q4 results.
Among the hedge funds tracked by Insider Monkey, 33 funds reported owning stakes in ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) in the fourth quarter of 2021, up from 22 funds in the earlier quarter. Marshall Wace LLP is the leading shareholder of the company, with 2.70 million shares worth $159.3 million.
Here is what Evermore Global Advisors has to say about ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) in its Q2 2021 investor letter:
“ZIM Integrated Shipping Services (ZIM) was the largest contributor to the Fund’s performance during the second quarter. With a market cap of $5.2 billion, ZIM is an Israel-based containership operator that had its initial public offering on the New York Stock Exchange this past January. As a reminder, we discussed ZIM at length in the Q1 2021 quarterly commentary as one of the new investments that we initiated during that period.
There were several notable developments during the second quarter. Given the company’s unique asset light business model and targeted, global niche approach, ZIM continued to generate exceptionally strong cash flows. ZIM ended the period with approximately $1.25 billion in cash and about $915 million in net debt. Due to the strong operational performance, the company further strengthened its balance sheet by redeeming its Series 1 and Series 2 unsecured notes due in 2023. With the early redemption of the unsecured notes, ZIM was no longer subject to certain dividend restrictions, and it declared a special dividend of $2 per share, which will be payable on Sept 15th (goes ex on August 24th). Lastly, management revised its 2021 full year EBITDA guidance from $1.4 – 1.6 billion to $2.5 – $2.7 billion, which was a sizable increase compared to the levels set last March. To that end, we continue to have high conviction in our position in ZIM.”
7. Roblox Corporation (NYSE:RBLX)
Number of Hedge Fund Holders: 61
Roblox Corporation (NYSE:RBLX) is a California-based entertainment company that allows users to navigate the 3D digital world with immersive gaming and collaborative experiences. Roblox Corporation (NYSE:RBLX) is one of the hottest stocks on Robinhood lately.
On March 29, Daiwa analyst Jonathan Kees initiated coverage of Roblox Corporation (NYSE:RBLX) with an Outperform rating and a $56 price target. The analyst believes that the mobile gaming market and the metaverse market has the potential to grow significantly. While Roblox Corporation (NYSE:RBLX)’s competition “remains quite strong”, the market opportunity is huge and there is enough room for current players.
According to the fourth quarter database of Insider Monkey, 61 hedge funds held long positions in Roblox Corporation (NYSE:RBLX), up from 50 funds in the last quarter. The total stakes owned by elite funds in Roblox Corporation (NYSE:RBLX) amounted to more than $4 billion at the end of December 2021. Renaissance Technologies held the largest position in the company, with 5.3 million shares worth $557 million.
Here is what Tao Value has to say about Roblox Corporation (NYSE:RBLX) in its Q4 2021 investor letter:
“Roblox (RBLX) got significant more attention from both institutional & retail investors after Facebook announced to rename itself as Meta Platforms. I believe the price appreciation is largely attributed to the increased attention. On the business side, Roblox rolled out a few successful music events and also partnered with Netflix on testing long-form media consumption in the virtual world. Apple in its iOS 14.5 rolled out an impactful change for the digital advertising landscape by requiring all apps to ask users to “opt in”.
6. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 69
Advanced Micro Devices, Inc. (NASDAQ:AMD) is headquartered in Santa Clara, California, operating as a semiconductor company worldwide. The company specializes in semiconductors, artificial intelligence, GPUs, graphics cards, consumer electronics, video games, and computer hardware.
Advanced Micro Devices, Inc. (NASDAQ:AMD) reported its Q4 results on February 1, posting earnings per share of $0.92, beating estimates by $0.16. Revenue over the period jumped roughly 49% year-over-year to $4.83 billion, exceeding market consensus by $296.39 million.
On March 27, Goldman Sachs analyst Toshiya Hari maintained a Buy rating on Advanced Micro Devices, Inc. (NASDAQ:AMD), but removed the stock from the firm’s Conviction List. The price target of $127 implies 6% potential upside. The analyst remains positive about Advanced Micro Devices, Inc. (NASDAQ:AMD)’s growing serviceable addressable market, potential upside to market share, and the possibility of expanding gross and operating margins. However, he expects Wall Street estimates to stabilize over the coming quarters as the total addressable market for personal computers declines, competition in the CPU space intensifies, and GPU demand normalizes.
According to the fourth quarter database of Insider Monkey, 69 hedge funds were bullish on Advanced Micro Devices, Inc. (NASDAQ:AMD), compared to 65 funds in the earlier quarter. Fisher Asset Management, a notable shareholder of the company, boosted its stake in Advanced Micro Devices, Inc. (NASDAQ:AMD) by 27%, holding approximately 20 million shares worth $2.8 billion.
Investors on Robinhood are flocking to Advanced Micro Devices, Inc. (NASDAQ:AMD), in addition to Alphabet Inc. (NASDAQ:GOOG), NVIDIA Corporation (NASDAQ:NVDA), and Exxon Mobil Corporation (NYSE:XOM).
Here is what Carillon Tower Advisers has to say about Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q4 2021 investor letter:
“Advanced Micro Devices (AMD) supplies semiconductor chips for central processing units (CPUs) and graphic processing units (GPUs). The firm has been gaining share against its primary competitor in the datacenter server CPU space, as this rival has been unable to match the design and manufacturing capabilities of AMD and its partners. Investors are also looking forward to the closing of the previously announced merger with a semiconductor manufacturer that is another one of the portfolio’s holdings. The merger will increase AMD’s capabilities in the Field Programmable Gate Array (FPGA) chip space, and the combined company should possess the potential to win additional market share in the datacenter chip market.”
5. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 71
Exxon Mobil Corporation (NYSE:XOM), the American oil and gas multinational company, was one of the stocks trending on Robinhood as of late. On March 25, KBR, Inc. (NYSE:KBR) and Exxon Mobil Corporation (NYSE:XOM) announced plans to collaborate, bringing notable advancements to propane dehydrogenation technology.
On March 9, Barclays analyst Jeanine Wai lifted the price target on Exxon Mobil Corporation (NYSE:XOM) to $98 from $91 and reiterated an Overweight rating on the shares. The analyst updated his model to account for the current gas prices and latest Permian production and capex assumptions.
Among the hedge funds monitored by Insider Monkey as of Q4 2021, 71 funds were long Exxon Mobil Corporation (NYSE:XOM), compared to 64 funds in the last quarter. Rajiv Jain’s GQG Partners is the biggest shareholder of the company, with 32.3 million shares worth roughly $2 billion.
Here is what First Eagle Investment Management has to say about Exxon Mobil Corporation (NYSE:XOM) in its Q2 2021 investor letter:
“Leading contributors in the First Eagle Global Fund this quarter included Exxon Mobil Corporation. The continued recovery in oil prices as economies reopen helped fuel another strong performance across the energy complex, including shares of Exxon Mobil. Exxon Mobil recently lost a proxy fight with an activist investor that took three of the company’s 12 board seats. While the press was focused on the investor’s concerns over Exxon Mobil’s long term energy transformation strategy, other factors fundamental to shareholder returns—like capital discipline and balance sheet management—were also at play.”
4. Intuit Inc. (NASDAQ:INTU)
Number of Hedge Fund Holders: 82
Headquartered in Mountain View, California, Intuit Inc. (NASDAQ:INTU) is a provider of financial management and compliance products and services for small businesses in the United States, Canada, and international markets.
Intuit Inc. (NASDAQ:INTU) declared on March 3 a $0.68 per share quarterly dividend, in line with previous. The dividend will be distributed on April 18, to shareholders of record on April 11.
On March 21, Stifel analyst Brad Reback maintained a Buy recommendation on Intuit Inc. (NASDAQ:INTU), but reduced the price target to $580 from $600. The analyst cited the enterprise software sector reflecting increasing headwinds to new business activity given the Russia/Ukraine war, accelerating supply chain challenges, and the widespread effect of higher energy prices on consumer spending for the slashed price objective.
According to the Q4 database of Insider Monkey, 82 hedge funds placed long bets on Intuit Inc. (NASDAQ:INTU), up from 64 funds in the last quarter. Terry Smith’s Fundsmith LLP is the largest shareholder of Intuit Inc. (NASDAQ:INTU), with 3.7 million shares worth $2.40 billion.
Here is what Baron FinTech Fund has to say about Intuit Inc. (NASDAQ:INTU) in its Q4 2021 investor letter:
“Intuit Inc. is the leading provider of accounting and tax preparation software. Shares increased after the company reported quarterly results that beat Street estimates, with 22% revenue growth in the Small Business segment and record-high revenue from Credit Karma. The company closed the acquisition of MailChimp, which expands its product offering and is accretive to EPS. Management increased full-year guidance to reflect better organic growth and the contribution from MailChimp. We continue to own the stock due to Intuit’s strong competitive position and numerous growth opportunities. We have several investments in software companies that help businesses manage their financial processes and operations. Intuit Inc. provides accounting and payroll solutions for small businesses as well as tax preparation software for consumers and tax professionals.”
3. Snowflake Inc. (NYSE:SNOW)
Number of Hedge Fund Holders: 84
Snowflake Inc. (NYSE:SNOW) is one of the hottest stocks on Robinhood lately. Snowflake Inc. (NYSE:SNOW) provides a cloud-based platform that allows data management and business insights to be analyzed.
On March 2, Snowflake Inc. (NYSE:SNOW) reported its Q4 earnings, posting an EPS of $0.12, topping estimates by $0.09. Revenue over the period gained 101.49% from the prior-year quarter, reaching approximately $384 million, outperforming market consensus by $10.90 million.
Truist analyst Joel Fishbein on March 24 maintained a Buy rating on Snowflake Inc. (NYSE:SNOW) but lowered the price target to $350 from $400, citing valuations in the Infrastructure and Security software sectors.
Among the hedge funds tracked by Insider Monkey, 84 hedge funds were bullish on Snowflake Inc. (NYSE:SNOW) at the end of Q4 2021, compared to 73 funds in the previous quarter. Brad Gerstner’s Altimeter Capital Management owns the largest stake in the company, with more than 17 million shares worth $5.75 billion.
Here is what Guardian Capital Management has to say about Snowflake Inc. (NYSE:SNOW) in its Q4 2021 investor letter:
“When we read the quarterly earnings updates, we continue to be impressed by the magnitude of the reallocation of resources within society. For instance, cloud spending is expected to nearly triple by 2025. The migration to the public cloud is a massive opportunity for Snowflake, as well as dozens of companies that are still small private ventures today. The markets for digital commerce, payments, advertising, streaming of content, and information intelligence, are likely to keep compounding at double digit growth rates for the foreseeable future.
No wonder there is much excitement and people feel increasing pressure to participate in wealth creation that is taking place in those fields. While many intelligent capital allocators understand the value that is to be found in investing in internet-enabled businesses, the fear of timing and valuation has been high for years. The shift in thinking and the new mental models required to transition from linearly growing companies to some of the most scalable business models is hard. It becomes even harder when having to do the homework in an echo chamber of worried market observers constantly pointing at rising stock prices combined with the ‘I told you so’ crowd that are flourishing nowadays.
All in all, we are convinced that the podium on which we are focused – the data-driven, cloudnative, founder-led, businesses that enable people to play and work digitally – is where the magic happens for a long time to come. What matters to us is whether the businesses are worth at least double in 2025. We think that when we will be looking back at today’s prices in 2030, they will likely look like bargains for several businesses.”
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 110
NVIDIA Corporation (NASDAQ:NVDA) is one of the most talked about stocks on Robinhood. NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing, and networking solutions across the United States and international markets.
NVIDIA Corporation (NASDAQ:NVDA) posted above consensus earnings and revenue for the fourth quarter of 2021 on February 16. The EPS came in at $1.32 and the revenue climbed almost 53% from the prior-year quarter to $7.64 billion.
On March 29, Tigress Financial analyst Ivan Feinseth raised the price target on NVIDIA Corporation (NASDAQ:NVDA) to $410 from $400 and kept a Buy rating on the shares. The company recently highlighted new products and its ongoing advancement in artificial intelligence, autonomous technology, and the Omniverse, the analyst told investors. Feinseth noted that NVIDIA Corporation (NASDAQ:NVDA) is rapidly becoming “the world’s leading AI processing provider”, and it is “positioned to be the world’s most transformative technology”.
Elite hedge funds were largely bullish on NVIDIA Corporation (NASDAQ:NVDA). Among the hedge funds tracked by Insider Monkey, 110 funds placed long calls on NVIDIA Corporation (NASDAQ:NVDA) at the end of December 2021, up from 83 funds in the prior quarter. Billionaire Israel Englander’s Millennium Management held a prominent position in the company, with 3.8 million shares worth $1.14 billion.
Here is what Vulcan Value Partners Large Cap Fund has to say about NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2021 investor letter:
“NVIDIA Corp. was a material contributor during the quarter. We have discussed NVIDIA at length in previous quarters. Its products are at the intersection of a number of important computing trends including the movement to the Cloud, artificial intelligence, autonomous vehicles, edge computing, gaming, and now, the Metaverse. The company continues to outperform expectations, growing its revenue and free cash flow significantly throughout 2021, and in turn, its value is compounding quickly.”
1. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 158
Alphabet Inc. (NASDAQ:GOOG) is a multinational technology conglomerate that is positioned as one of the Big Five US technology firms. Alphabet Inc. (NASDAQ:GOOG) is one of the trending stocks on Robinhood lately.
Tigress Financial analyst Ivan Feinseth on March 18 raised the price target on Alphabet Inc. (NASDAQ:GOOG) to $3,670 from $3,540 and reiterated a Strong Buy rating, stating that his updated target represents a potential return of 37% from current levels. The analyst observed Alphabet Inc. (NASDAQ:GOOG)’s “extremely strong” Q4 results and that its ongoing investment in AI “continues to drive increasingly focused and helpful experiences for users and businesses”.
As of the fourth quarter of 2021, Chris Hohn’s TCI Fund Management is the largest stakeholder of Alphabet Inc. (NASDAQ:GOOG), with 2.95 million shares worth $8.5 billion. Overall, 158 hedge funds were bullish on Alphabet Inc. (NASDAQ:GOOG) at the end of December 2021.
Here is what Vulcan Value Partners has to say about Alphabet Inc. (NASDAQ:GOOG) in its Q4 2021 investor letter:
“In contrast, we made a different kind of mistake about a decade ago. Google, now Alphabet, performed very well for us while we owned it. The company kept outperforming our assumptions and we kept lowering them to be conservative. “Trees do not grow to the sky.” The stock kept going up and our value grew but did not keep pace with the stock. It hit our estimate of fair value and we sold it with a nice gain, patting ourselves on the back. We kept following the company and what they actually did over the next several years was roughly double the assumptions we used to value it. Therefore, our value was too conservative, and we sold it too cheaply, missing many years of compounding. Fortunately, we experienced some volatility several years ago that allowed us to purchase Alphabet (Google) again with a margin of safety.”
You can also take a look at 10 Best Undervalued Stocks According to Hedge Funds and 10 Gold Stocks to Buy Amid Russian Attack on Ukraine.
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Disclosure: None. 10 Stocks Trending on Robinhood is originally published on Insider Monkey.
