Buying These 3 Robinhood Shares Might Be the Smartest Investment Move You’ve Ever Made
Investors using the Robin Hood platform generally likes solid short-term gains. A lot of their favorite stocks are the ones that were delivered within days or weeks. But that doesn’t mean the most popular stocks on Robinhood are just short-term winners. In fact, many of these stocks are better long-term investments. Over a longer period of time, investors can truly benefit from the innovations, sales and profits of companies.
Right now, I’m thinking of three stocks in particular that have performed well lately. But I expect each of them to provide more to investors over a period of years. Why? They are growing – and many more are on the horizon. Buying them today can mean a big investment down the road.
You’re here (NASDAQ: TSLA) stocks climbed 743% last year. This year, the gains are modest with only a 10% increase. But it is okay. Catalysts are on the horizon for this market leader in electric vehicles (EV). And those catalysts are vehicle deliveries and bottom lines.
Tesla is off to a good start. The automaker delivered half a million vehicles last year. This year, deliveries have increased quarter on quarter. And Tesla has already surpassed last year’s total. The company delivered more than 626,000 vehicles in the first three quarters. Tesla recently announced third quarter deliveries ahead of the full earnings report.
In the second quarter, the electric vehicle giant reported more than $ 1 billion in net income for the first time under GAAP. Importantly, the company widened its operating margin to 11% from 5.4% the previous year.
All this against the backdrop of a global chip shortage. CEO Elon Musk calls chip supply “the determining factor in our production.” This issue could weigh on Tesla’s production schedule. But I see it as a temporary headwind. Demand for Tesla cars remains strong even as other automakers have joined the electric vehicle market. For example, Tesla claims that European demand is “much higher” than supply.
Tesla’s profit and revenue growth is just beginning.
So I think the share price story is still in its early stages.
I appreciate Amazon (NASDAQ: AMZN) because it is a leader in two major (and growing) areas: e-commerce and cloud computing.
Let’s start with e-commerce. The company’s Prime subscription service offers free same-day or one-day shipping on millions of items. And Amazon will deliver groceries for free within two hours in some locations. Amazon is continually innovating to streamline the shopping experience. The last? Now you can order a gift for someone even if you don’t have the person’s mailing address. Amazon will contact the recipient by email or text to arrange delivery.
The global e-commerce market is expected to grow at a compound annual growth rate of nearly 15% through 2027, according to Grand View Research. And a giant like Amazon should take advantage.
Now let’s talk about Amazon Web Services (AWS), the company’s cloud computing business. AWS was growing before the pandemic, but the health crisis has given it an extra boost. Many companies realized they no longer wanted to manage their own infrastructure, Amazon said.
AWS contributed more than $ 4.2 billion in operating profit in the last quarter, more than half of Amazon’s total operating profit. Amazon’s net income and revenues have increased in recent years. I expect the growth in online shopping and AWS to continue this trend.
Leader in coronavirus vaccine Moderna (NASDAQ: mRNA) climbed 268% in the first nine months of the year. But shares have fallen 21% since early October, over concerns that potential COVID-19 treatments will hurt vaccine sales. I see this as a buying opportunity.
First, I don’t expect vaccine sales to fall off a cliff. Treatments and treatment candidates have so far not been 100% effective. And that means it’s always possible to get seriously ill and end up hospitalized. About 55% of Americans got the flu shot last season. So I would expect at least the same population to continue with the coronavirus vaccines as well.
Second, Moderna is working on booster candidates to target specific variants of COVID-19, a next-generation vaccine candidate and a potential combined influenza / coronavirus vaccine. These potential products could generate significant income in the future. Experts predict that the coronavirus will not go away once the pandemic is over. He will always be there. And we will need protection.
And third, Moderna may depend entirely on COVID-19 vaccine sales now. But that won’t be the situation forever. The company has 37 programs in the works. And the most advanced is expected to enter Phase 3 trials this year. It is a vaccine candidate against a common virus called cytomegalovirus (CMV). Moderna projects between $ 2 billion and $ 5 billion in maximum annual sales of this potential product.
Moderna’s shares could suffer right now. But that, too, will not last forever. The coronavirus program and the rest of the pipeline offer many catalysts to drive gains over time.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.