Robintrack: the Best Investing Site You’ve Never Heard Of
I recently discovered Robintrack, a website dedicated to (you guessed it) tracking the investment moves of Robinhood users. Chart screenshots periodically show up on Twitter, so if you’ve seen anything like this before, chances are it came from Robintrack:
The beauty of these charts is their simplicity. The green line shows how many users owned a company over a certain time frame, and the pink line is the stock price over that same period. However, within these charts is a treasure trove of information about the mindset of retail investors.
Are people buying the dip? Adding while shares climb? Disregarding bad news or a bad earnings report? Continually making mistakes on certain securities? Robintrack, if followed correctly, can give you all these insights and more.
Let’s take a look at the charts of the ten most-owned stocks on Robinhood and see the investing patterns of individual investors. If you have trouble reading the small font, check out the leaderboard on Robintrack here.
1. Aurora Cannabis (ACB)
A lot of conviction with this stock. Except for the small period in the Fall of 2018 when marijuana stocks were getting out of control, ownership of ACB has steadily grown over the past year. Investors are buying no matter what the stock does, most likely because there is a lot of belief Aurora Cannabis will be a big winner in the coming marijuana boom.
2. General Electric (GE)
If you’re wondering why GE is the second most owned stock on a millennial trading app, it is because they give it out for free as a promotion for new users. Still, I am a little shocked how many users have kept their shares of General Electric with the stock price plummeting over the past year. Users are definitely holding/buying on the dip, which could end-up detrimental if GE continues to be a falling knife or ends up filing for bankruptcy.
3. Ford (F)
Another free stock Robinhood offers its users. Just like with GE, I’m surprised how many users have kept their shares of Ford, especially with car ownership declining.
4. Apple (AAPL)
This is the first chart where I agree with the choices of the other retail investors. While I do not own shares personally, Apple is a part of the MBP, so I do like the company. Above we see investors piling into stock during the December 2018 correction, with periodic selling over the last few months.
5. Microsoft (MSFT)
Another tech giant atop the leaderboard. Microsoft, as it has transitioned to become one of the global leaders in cloud-based services, has been a consistent winner over the past few years. Ownership, like the stock, is at or close to all-time highs, showing that investors are still bullish on the company.
6. Cronos Group (CRON)
Another pot stock (can you tell by now what Robinhood users like to buy?), but one that has not been as kind to investors. This chart shows ownership increasing during the two periods when the stock jumped. These choices have not proven to be fruitful, as the stock has almost been cut in half since its peak in February of 2019.
7. Fitbit (FIT)
Fitbit is a definite candidate for the free-stock promotion that Robinhood does, so bear in mind this chart could be slightly misleading. The first half of the chart shows ownership in Fitbit steadily increasing as the stock got cut in half. The second chart shows ownership hit an all-time high as the stock rebounded and then cut in half again. Not a great showing for Robinhood users on this one.
8. GoPro (GPRO)
I’m truly perplexed as to why Robinhood users love to buy failing hardware companies. It does look like a good amount of investors made money when the stock rebounded from all-time lows in December of 2018, but I personally don’t get the fascination with this thing. The business is failing and GoPros have definitely not lived up to their once hyped potential.
9. Advanced Micro Devices (AMD)
An interesting chart. Ownership growth in AMD has closely followed the stock price, which is likely due to chip stocks being popular among traders and technical analysts. In the past year, the strategy has not worked out well, as the stock is still off all-time highs with ownership only dropping slightly.
10. Tesla (TSLA)
This chart is one for the ages. As Tesla’s business has continued to lose its muster (I personally think they are going bankrupt), retail ownership on Robinhood has skyrocketed. Daniel Kahneman could probably write a new book with all the psychological and behavioral fallacies in play with this stock. I truly will be disappointed if Tesla goes out of business with this many retail investors owning it, but man will it be interesting to watch.
So, there you have it, an introduction to Robintrack, with a little bit of commentary sprinkled in. I seriously am in love with this site and think it can be a useful tool (or heat check) to use when evaluating a company.
Disclosure: The author is not a financial adviser, and may have an interest in the companies discussed.